Salem, OR – House Bill 2466, effective date 1/1/2020: The legislation applies to some planned communities and all condominium associations created “before, on or after” that date. In other words all condominiums and some planned communities created in the state.
As a result of HB 2466 all condominium associations and planned communities are required to maintain fidelity bond coverage in an amount that is dedicated by statute. Planned communities include all common interest developments that are governed by ORS 94. Condominiums, which are governed by ORS 100, are subject to the same requirements.
After the turnover meeting, the Board of Directors may elect to maintain a bond that is less than the amount required by statute provided that the decision is approved by the majority of the Association members.
The decision to maintain coverage that is less than the statutory requirement must be made on an annual basis by the Association members.