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Arkansas General Assembly· HB 1660Died in House Committee at Sine Die adjournment.

An act TO AMEND THE HORIZONTAL PROPERTY ACT, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                     A Bill
2 95th General Assembly

3 Regular Session, 2025                                            HOUSE BILL 1660

4

5 By: Representative S. Meeks

6

7

8                              For An Act To Be Entitled

9         AN ACT TO AMEND THE HORIZONTAL PROPERTY ACT; TO

10        REGULATE PROPERTY OWNERS ASSOCIATIONS; TO REQUIRE AN

11        AUDIT FOR CERTAIN PROPERTY OWNERS ASSOCIATIONS; AND

12        FOR OTHER PURPOSES.

13

14

15                                      Subtitle

16                       TO AMEND THE HORIZONTAL PROPERTY ACT; TO

17                       REGULATE PROPERTY OWNERS ASSOCIATIONS;

18                       AND TO REQUIRE AN AUDIT FOR CERTAIN

19                       PROPERTY OWNERS ASSOCIATIONS.

20

21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

22

23        SECTION 1. Arkansas Code � 18-13-102, concerning the definitions under

24 the Horizontal Property Act, is amended to add additional subdivisions to

25 read as follows:

26        (12) "Local government" means:

27                       (A) A county;

28                       (B) A city of the first class, a city of the second class,

29 or an unincorporated town; or

30                       (C) Any other state entity or political subdivision of the

31 state or an agency, board, or commission of the state entity or political

32 subdivision of the state;

33        (13) "Property owners association" means an incorporated

34 nonprofit organization operating under recorded land agreements through which

35 each:

36                       (A) Lot owner in a planned unit or other described land

    *ANS259*                                                  03/04/2025 10:09:39 AM ANS259
                                                                        HB1660

1 area is automatically a member;

2                (B) Lot is automatically subject to a charge for a

3 proportionate share of the expenses for the organization's activities and

4 services; and

5                (C) Incorporated nonprofit organization has at least one

6 thousand (1,000) members; and

7   (14)(A) "Services traditionally performed by a local government"

8 means services provided to members of a property owners association.

9                (B) "Services traditionally performed by a local

10 government" includes without limitation:

11                         (i) Road maintenance;

12                         (ii) Sewer services;

13                         (iii) Trash services; and

14                         (iv) Water services.

15

16  SECTION 2. Arkansas Code � 18-13-110 is amended to read as follows:

17  18-13-110. Book of receipts and expenditures -- Examination -- Annual

18 financial report -- Audit.

19  (a) The administrator, the board of administration, or other form of

20 administration specified in the bylaws shall keep a book with a detailed

21 account, in chronological order, of the receipts and expenditures affecting

22 the building and its administration and specifying the maintenance and repair

23 expenses of the common elements and any other expenses incurred.

24  (b) Both the book and the vouchers accrediting the entries made

25 thereupon All financial records shall be available for examination by all the

26 co-owners at convenient hours on working days that shall be set and announced

27 for general knowledge.

28  (c)(1) A property owners association organized under this subchapter

29 may be subject to review by Arkansas Legislative Audit if the property owners

30 association provides services traditionally performed by a local government.

31  (2) A review under subdivision (c)(1) of this section shall be

32 conducted by Arkansas Legislative Audit only after approval by the

33 Legislative Joint Auditing Committee.

34  (3) This subsection does not limit the authority of the

35 Legislative Auditor to conduct an audit under � 10-4-401 et seq.

36

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