Connecticut Governor Dannel P. Malloy Monday signed a critical law for condo owners that requires banks to reimburse condo associations for maintenance in case of foreclosures.
The reason the bill was critical because two judges had ruled that the state statute governing reimbursement of condo fees was limited to a one time six month payment.
State Rep. Matthew D. Ritter (D-Hartford) said the bill was adopted during the last day of the General Assembly be an overwhelming vote from both parties. He said he believes the governor will sign the legislation.
Ritter said the bill clarifies that condo associations can be reimbursed for nine months of condo fees. If the foreclosure takes longer the association can continue to receive 9 months of fees every year.
Banks in return wanted more notice if a condo association was planning on taking a foreclosure action. The bill requires associations to provide banks with a 60 day notice.
The bill had the support of both the Community Association Institute of Connecticut, which mainly represents property managers and condo attorneys, as well as by the Connecticut Condo Owners Coalition, which represents condo owners.
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