Ohio Planned Community Law — Powers and Duties of Association

Section 5312.06 | Powers and duties of owner's association. Effective: September 13, 2022 Latest Legislation: Senate Bill 61 - 134th General Assembly PDF: Download Authenticated PDF (A) The owners association, through its board of directors, shall do both of the following: (1) Annually adopt and amend an estimated budget for revenues and expenditures. Any budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless the owners, exercising not less than a majority of the voting power of the owners association, waive the reserve requirement in writing annually. (2) Collect assessments for common expenses from owners in accordance with section 5312.10 of the Revised Code. (B) Commencing not later than the time of the first conveyance of a lot to a person other than a declarant, the owners association shall maintain all of the following to the extent reasonably available and applicable: (1) Property insurance on the common elements; (2) Liability insurance pertaining to the common elements; (3) Directors and officers liability insurance; (4)(a) Blanket fidelity, crime, or dishonesty insurance coverage for any person who controls or disburses association funds. As used in division (B)(4)(a) of this section, "person who controls or disburses association funds" means any individual with authority or access to sign checks, conduct electronic transfers, or otherwise withdraw funds from any association account or deposit, including the following: (i) A management company's principals and employees; (ii) A bookkeeper; (iii) The president, secretary, treasurer, any other board member, or employee of the owners association. (b) All of the following apply to the insurance coverage required under division (B)(4)(a) of this section: (i) Coverage shall be for the maximum amount of funds that will be in the custody of the association or its designated agent at any one time plus three months of operating expenses. (ii) The insurance shall be the property of and for the sole benefit of the association and shall protect against theft, embezzlement, misappropriation, or any other unauthorized taking or loss of association funds. (iii) The policy shall include in its definition of "employee" the manager and the managing agent of the association's funds or provide for this inclusion by an endorsement to the policy. (iv) The policy shall name the association as the insured party and shall include a provision requiring the issuer of the policy to provide a ten-day written notice to the association's president or manager in the event of cancellation or substantial modification of the policy. The manager or managing agent, if any, of the association shall be the designated agent on the policy. (v) If there is a change in the manager or the managing agent of the association, then within ten days of the effective start date, the new manager or managing agent shall notify the insurer of such change. (C) The owners association shall keep all of the following: (1) Correct and complete books and records of account that specify the …

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