House passes bill letting condo/HOA owners seek court‑ordered audits of association books

The House passed a substitute for House Bill 5265 after floor debate that sponsors said increases transparency for owners of common‑interest communities, such as condominiums and homeowners associations.

Representative Wood, chair of the Insurance Committee, told the chamber the bill "allows a group of common interest community unit owners to petition the superior court for an order to obtain certain financial records through an independent third‑party audit." He said the measure also expands the residential condition report given by a seller to prospective buyers to include a special statement on common‑interest ownership advising buyers to request a resale certificate and a reserve fund report.

Members asked detailed questions about thresholds and procedure. Representative Wood said a petition requires the written certification of a good‑faith belief that an audit is needed, an opinion from a CPA specializing in fraud or forensic accounting, and signatures certifying ownership of at least 20% of the voting units. He also said owners who petition pay for the audit and related court costs.

Supporters emphasized the bill’s transparency goals. Representative Hovlich Damato asked whether the 20% threshold was of all unit owners or only voting members; Wood answered it is 20% of voting unit owners. The ranking member noted the bill balances access to records with protections against frivolous audits.

The chamber voted by recorded tally; the clerk announced the bill passed. The sponsor urged passage to give unit owners tools to resolve financial opacity without replacing boards but by providing a legal path for independent review.

What happens next: the bill, as passed by the House, goes to the Senate or to reconciliation consistent with the Legislature's process.