2026-09-09 · Connecticut · Compliance

A Connecticut community association manager signing a management contract must now disclose, clearly and in writing, whether they hold an interest in any business that sells to the association — and what they will charge for construction oversight that falls outside the contract. The duty is § 20-457(g), added by Public Act 25-111, effective October 1, 2025.¹

The same act also narrowed the exemption that let some paid professionals manage associations without registering at all.

The disclosure duty, in full

“Each community association manager who enters into a contract with an association for the purpose of providing association management services shall disclose to the association:

(A) Whether the community association manager has any ownership or managerial interest in any entity that solicits business from the association or the community association manager; and

(B) If the community association manager is required to provide any construction oversight or project coordination services to the association that are not included in the scope of the general association management services… any amount the community association manager will charge to provide such construction oversight or project coordination services.”¹

And the form requirement: “Each disclosure made pursuant to this subsection shall be clear, conspicuous and in writing.”

Both limbs answer a real complaint

The first reaches vendor self-dealing — the manager who also has an interest in the landscaping, roofing or restoration company bidding for the association's work. Note it runs both ways: an interest in an entity soliciting business from the association or from the manager.

The second reaches the charge that appears after a capital project is underway. Construction oversight is often outside the base management fee, and the act requires the number to be on the table when the contract is signed rather than when the invoice arrives.

Connecticut's Department of Consumer Protection names both problems in its own March 2026 guidance on the most common complaints it receives about associations: undisclosed conflicts of interest and self-dealing with vendors, and managers overstepping their authority.³

1. Public Act No. 25-111 (Substitute Senate Bill No. 1357), §§ 11-13 — amending Conn. Gen. Stat. §§ 20-450, 20-452 and 20-457 ↩
2. 2025 Acts Affecting Housing and Real Estate, OLR Report 2025-R-0113 (July 31, 2025) ↩
3. Most Common Homeowners Association (HOA) Complaints, Connecticut Department of Consumer Protection (March 11, 2026) ↩
4. Community Association Manager registration, Connecticut Department of Consumer Protection ↩
5. HB 5433 (2026), limitations on gifts to executive board members — died in committee ↩