Italy: New legislative proposal targets condominium administrator fraud

Fabrizio Cecchetti, a deputy from the Lega party and Secretary of the Presidency Office of the Chamber of Deputies, has introduced a legislative proposal aimed at protecting families from fraud committed by condominium administrators.

The proposal seeks to amend the Civil Code and the Insurance Code by introducing mandatory insurance for administrators and establishing a Guarantee Fund. This fund would be used to compensate citizens who fall victim to irregularities, embezzlement, or mismanagement. Cecchetti noted that recent years have seen numerous cases where administrators have misappropriated funds, leaving residential buildings unable to pay for utilities, suppliers, or essential maintenance.

The objective of the bill is to increase transparency, ensure accountability, and provide concrete economic protections for residents when administrators become unreachable or lack the resources to cover damages caused by negligence or fraud.