SCS CSHB 470(RLS): "An Act relating to public offering statements required under the Uniform Common Interest Ownership Act; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 470(RLS) 01 "An Act relating to public offering statements required under the Uniform Common 02 Interest Ownership Act; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 34.08.520(c) is amended to read: 05 (c) A declarant or dealer who offers a unit to a purchaser shall deliver a public 06 offering statement, or a preliminary version of the public offering statement that 07 reasonably reflects the contents of the public offering statement that is 08 subsequently delivered to a purchaser, in the manner required by AS 34.08.580(a). 09 The person who prepared all or a part of the public offering statement is liable under 10 AS 34.08.580 and 34.08.670 for any false or misleading statement set out in the 11 statement or for any omission of a material fact from the statement with respect to the 12 portion of the public offering statement that the person prepared. If a declarant did not 13 prepare any part of a public offering statement, the declarant is not liable for a false or 14 misleading statement set out in the statement or for an omission of a material fact from
01 the statement unless the declarant had actual knowledge of the statement or omission 02 or, in the exercise of reasonable care, should have known of the statement or omission. 03 * Sec. 2. AS 34.08.530(a) is amended to read: 04 (a) Except as provided in (b) of this section, a public offering statement must 05 fully and accurately contain or disclose 06 (1) the name and principal address of the declarant and of the common 07 interest community and indicate whether the common interest community is a 08 condominium, cooperative, or planned community; 09 (2) a general description of the common interest community, 10 including, in a building constructed for residential purposes with horizontal 11 boundaries, the area of the interior surface of floors available for residential purposes 12 and, to the extent possible, the types, number, and declarant's schedule for the 13 commencement and completion of construction of buildings and amenities that the 14 declarant anticipates including in the common interest community; 15 (3) the number of units in the common interest community; 16 (4) copies and a brief narrative description of the significant features of 17 the declaration, other than plats and plans, and 18 (A) any recorded covenants, conditions, restrictions, and 19 reservations affecting the common interest community; 20 (B) the bylaws and any rules or regulations of the association; 21 (C) copies of any contracts and leases to be signed by 22 purchasers at closing; and 23 (D) a brief narrative description of any contracts or leases that 24 will or may be subject to cancellation by the association under AS 34.08.360; 25 (5) any current balance sheet and a projected budget for the 26 association, either within or as an exhibit to the public offering statement, for one year 27 after the date of the first conveyance to a purchaser, and the current budget of the 28 association, the name of the person who prepared the budget, and a statement of the 29 budget's assumptions concerning occupancy, assumptions concerning the calculation 30 of the amount of reserves certified by a certified architect or engineer, and inflation 31 factors, including, without limitation,
01 (A) a statement of the amount included in the budget as a 02 reserve for repairs and replacement including the estimated cost of repair or 03 replacement cost and the estimated useful life of the asset to be repaired or 04 replaced; 05 (B) a statement of any other reserves; 06 (C) the projected common expense assessment by category of 07 expenditures for the association; and 08 (D) the projected monthly common expense assessment for 09 each type of unit; 10 (6) any services not reflected in the budget that the declarant provides, 11 or expenses that the declarant pays and that the declarant expects may become a 12 common expense of the association at a subsequent time and the projected common 13 expense assessment attributable to each of those services or expenses for the 14 association and for each type of unit; 15 (7) any initial or special fee due from the purchaser at closing, together 16 with a description of the purpose and method of calculating the fee; 17 (8) a description of liens, defects, or encumbrances on or affecting the 18 title to the common interest community; 19 (9) a description of financing offered or arranged by the declarant; 20 (10) the terms and significant limitations of warranties provided by the 21 declarant, including statutory warranties and limitations on the enforcement of the 22 warranties or on damages; 23 (11) a statement that 24 (A) within 15 days after receipt of a public offering statement 25 or a preliminary version of the public offering statement that reasonably 26 reflects the contents of the public offering statement that is subsequently 27 delivered to a purchaser, a purchaser, before conveyance, may cancel any 28 contract for purchase of a unit from a declarant; 29 (B) if a declarant fails to provide a public offering statement to 30 a purchaser before conveying a unit, the purchaser may recover from the 31 declarant up to 10 percent of the sales price of the unit plus 10 percent of the
01 share, proportionate to the common expense liability of the unit, of any 02 indebtedness of the association secured by security interests encumbering the 03 common interest community; and 04 (C) a purchaser who receives the public offering statement, or 05 a preliminary version of the public offering statement that reasonably 06 reflects the contents of the public offering statement that is subsequently 07 delivered to a purchaser, more than 15 days before signing a contract cannot 08 cancel the contract; 09 (12) a statement of any unsatisfied judgments or pending suits against 10 the association, and the status of any pending suits material to the common interest 11 community of which a declarant has actual knowledge; 12 (13) a statement that a deposit made in connection with the purchase of 13 a unit will be held in an escrow account until closing and will be returned to the 14 purchaser if the purchaser cancels the contract under AS 34.08.580, together with the 15 name and address of the escrow agent; 16 (14) any restraints on alienation of any portion of the common interest 17 community and any restrictions 18 (A) on use, occupancy, and alienation of the unit; and 19 (B) on the amount for which a unit may be sold or on the 20 amount that may be received by a unit owner on sale, condemnation, or 21 casualty loss to the unit or to the common interest community, or on 22 termination of the common interest community; 23 (15) a description of the insurance coverage provided for the benefit of 24 unit owners; 25 (16) current or expected fees or charges to be paid by a unit owner for 26 the use of the common elements and other facilities related to the common interest 27 community; 28 (17) the extent to which financial arrangements have been provided for 29 completion of improvements that the declarant is obligated to build under 30 AS 34.08.690; 31 (18) a brief narrative description of zoning and other land use
01 requirements affecting the common interest community; 02 (19) each unusual and material circumstance, feature, or characteristic 03 of the common interest community and the units; and 04 (20) in a cooperative, 05 (A) whether each unit owner will be entitled, for federal, state, 06 and local income tax purposes, to a pass-through of deductions for payments 07 made by the association for real estate taxes and interest paid the holder of a 08 security interest encumbering the cooperative; and 09 (B) a statement as to the effect on each unit owner if the 10 association fails to pay real estate taxes or payments due the holder of a 11 security interest encumbering the cooperative. 12 * Sec. 3. AS 34.08.580(a) is amended to read: 13 (a) A person required to deliver a public offering statement under 14 AS 34.08.520(c) shall provide each purchaser with a copy of the public offering 15 statement and each amendment to the statement, or a preliminary version of the 16 public offering statement that reasonably reflects the contents of the public 17 offering statement that is subsequently delivered to a purchaser, before 18 conveyance of the unit, and not later than the date of a contract of sale. If a purchaser 19 is not given the public offering statement, or a preliminary version of the public 20 offering statement that reasonably reflects the contents of the public offering 21 statement that is subsequently delivered to a purchaser, more than 15 days before 22 execution of a contract for the purchase of a unit, the purchaser, before conveyance, 23 may cancel the contract within 15 days of receipt of the public offering statement or 24 preliminary version of the public offering statement. 25 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).