Bill Text: NH SB235 | 2015 | Regular Session | Amended
Bill Title: Relative to the condominium act and the land sales full disclosure act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-07-15 - Signed by the Governor on 07/13/2015; Chapter 0256; Effective 01/01/2016 [SB235 Detail]
Download: New_Hampshire-2015-SB235-Amended.html
SB 235 - AS AMENDED BY THE SENATE
03/26/2015 1029s
2015 SESSION
15-1018
05/10
SENATE BILL 235
AN ACT relative to the condominium act and the land sales full disclosure act.
COMMITTEE: Public and Municipal Affairs
AMENDED ANALYSIS
This bill:
I. Defines the financial statements required if the declarant or subdivider is not a natural person.
II. Describes the type of financial information required to provide reasonable assurance that all uncompleted improvements and amenities will be completed.
III. Permits a declarant or subdivider to request an amended certificate of registration.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/26/2015 1029s
15-1018
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to the condominium act and the land sales full disclosure act.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Condominium Act; Application for Registration Fee; Financial Statements. Amend RSA 356-B:51, I(u) to read as follows:
(u) Any other information including any current financial statement, which the attorney general by [his] rules reasonably requires for the protection of purchasers. If the declarant is a corporation, limited liability company, or other entity, personal financial statements from all principals holding more than a 25 percent ownership interest in the declarant, certified as true and complete by the individual principals, accompanied by federal income tax returns for the 2 most recent full calendar years, may be submitted in lieu of financial statements for the declarant. Financial information filed with the attorney general shall not be disclosed publicly except in connection with a hearing, civil action, or criminal action involving the party who submitted the information.
2 Condominium Act; Inquiry and Investigation; Reasonable Assurance. Amend RSA 356-B:53, I(b) to read as follows:
(b) That there is reasonable assurance that all uncompleted improvements and amenities will be completed as represented. Reasonable assurance includes, but is not limited to, evidence of institutional financing in the form of a revolving line of credit in an amount less than the total cost of completing the improvements, so long as the loan documents provide (i) that funds may be re-advanced during the term of the loan to construct the improvements, and (ii) that the loan documents provide that the institutional lender shall notify the attorney general in the event that the revolving line of credit is cancelled or reduced;
3 New Paragraph; Condominium Act; Notice of Filing and Registration; Amended Certificate of Registration. Amend RSA 356-B:54 by inserting after paragraph VI the following new paragraph:
VII. After issuance of a certificate of registration by the attorney general, a declarant may request to withdraw a unit or units from the registration, and replace with another unit or units, so long as the total number of units does not exceed the total number of units identified in the original certificate of registration. Upon receipt of such request, so long as the substitution does not otherwise constitute a material change in the initial application for registration, the attorney general shall issue an amended certificate of registration, which the declarant shall cause to be recorded in the appropriate registry of deeds.
4 Land Sales Full Disclosure Act; Application for Registration; Financial Statement. Amend RSA 356-A:5, I(v) to read as follows:
(v) Any other information, including any current financial statement, which the attorney general by [his] reasonable rules requires for the protection of purchasers. If the subdivider is a limited liability company, corporation, or other entity, personal financial statements from all principals holding more than a 25 percent ownership interest in the subdivider, certified as true and complete by the individual principals, accompanied by federal income tax returns for the 2 most recent full calendar years, may be submitted in lieu of financial statements for the subdivider. Financial information filed with the attorney general shall not be disclosed publicly except in connection with a hearing, civil action, or criminal action involving the party who submitted the information.
5 Land Sales Full Disclosure Act; Inquiry and Examination; Reasonable Assurance. Amend RSA 356-A:7, I(b) to read as follows:
(b) That there is reasonable assurance that all proposed improvements will be completed as represented. Reasonable assurance includes, but is not limited to, evidence of institutional financing in the form of a revolving line of credit in an amount less than the total cost of completing the improvements, so long as the loan documents provide (i) that funds may be re-advanced during the term of the loan to construct the improvements, and (ii) that the loan documents provide that the institutional lender shall notify the attorney general in the event that the revolving line of credit is cancelled or reduced;
6 New Paragraph; Land Sales Full Disclosure Act; Amended Certificate of Registration. Amend RSA 356-A:8 by inserting after paragraph V the following new paragraph:
VI. After issuance of a certificate of registration by the attorney general, a subdivider may request to withdraw a lot or lots from the registration, and replace with another lot or lots, so long as the total number of lots does not exceed the total number of lots identified in the original certificate of registration. Upon receipt of such request, so long as the substitution does not otherwise constitute a material change in the initial application for registration, the attorney general shall issue an amended certificate of registration, which the subdivider shall cause to be recorded in the appropriate registry of deeds.
7 Effective Date. This act shall take effect January 1, 2016.
