Specific HOA State Laws

Started by SharonH9 • 7 replies • 2294 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

SharonH9 (Virginia)
Posts: 216

Posted:

There seems to be quite a difference of opinion on this topic so thought I would pose this question for discussion.

Do you prefer that your state has no specific laws governing HOA's and that your HOA has complete local control over your community? Or do you prefer that your state implement specific HOA laws to aid you in the governing of your HOA community?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Sharon,

I don't think that's a general question that can be answered with generalities.

If an Association has a Board that isn't complying with the governing documents, not keeping the members informed, creates the perception of secrecy and the members can't get organized enough to toss that board out and elect a new board, they would likely favor any governmental oversight.

If an Association has a Board that is complying with the governing documents, keeping the membership informed and creates a perception of openness it's likely the members are happy with the way things are and don't want government interference with their private contract (the CC&Rs).

Therefore, every yes, no or maybe answer to this question will be based on personal experience with specific Boards. If you ask 100 people who live in Associations that has major issues, the answer will likely be yes. If you ask 100 people who live in Associations where there are little or no issues, the answer will likely be no. This, I believe, is the reason for the difference of opinion on the topic.

SharonH9 (Virginia)
Posts: 216

Posted:

Tim,

Thanks for your insight but I am asking the question from the perspective of a member of the BOD not the membership.

Using the new Virginia law regarding home based businesses, let's say I want to begin selling homemade wooden lawn furniture out of my home. I put the lawn furniture on my front lawn for prospective buyers to see. My neighbor doesn't like this for a couple of reasons. He thinks it clutters up the neighborhood and also brings in more traffic.

How would you as a board member handle this situation? Would you quote the new law to the complaining neighbor? Does that not make it easier for you to have that particular law to refer to?

From my perspective I can see that in some situations having some specific HOA laws on the books have some benefit to those volunteering to manage it.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Fortunately, that law defers to the CC&Rs. All the CC&R's I've seen are boiler plated to prohibit home base businesses. Additionally, placing chairs on your front lawn would also require prior approval as it's a change to the exterior of your home. I would also inquire about your business license.

I believe that this is like the CT law that makes the politicians feel good but the language doesn't really change anything. It only creates more of a headache for the Associations as they have to explain or defend the governing documents because some member didn't properly read the law.

Personally, I like that VA requires the Association, via the seller, to provide all the governing documents, the last 6 months of approved minutes and the budget along with certain statements to a potential buyer. This ensures that the Buyer had enough documents to make an informed decision. Of course you can't force the buyer to read them.

Other laws, like creating VA's Ombudsman, I just see as another revenue stream for the State. Their initial goal was to ensure all Associations were registered and that all MC and CAMs are licensed. Now they are specifying classes which are required to hold a license. Gee, I wonder when board members will be required to become certified at the expense of the Association? Today, after a few years in existence, they still have no authority to settle issues and are only willing to review and comment on issues that may have violated the law (not the governing documents). I'll bet it made some politicians feel good to pass the law that created this office.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 06/02/2013 8:21 PM
Sharon,

I don't think that's a general question that can be answered with generalities.

If an Association has a Board that isn't complying with the governing documents, not keeping the members informed, creates the perception of secrecy and the members can't get organized enough to toss that board out and elect a new board, they would likely favor any governmental oversight.

If an Association has a Board that is complying with the governing documents, keeping the membership informed and creates a perception of openness it's likely the members are happy with the way things are and don't want government interference with their private contract (the CC&Rs).

Therefore, every yes, no or maybe answer to this question will be based on personal experience with specific Boards. If you ask 100 people who live in Associations that has major issues, the answer will likely be yes. If you ask 100 people who live in Associations where there are little or no issues, the answer will likely be no. This, I believe, is the reason for the difference of opinion on the topic.

I agree.

JeanneK3 (Maryland)
Posts: 562

Posted:

Sharon:
I firmly believe that state and county law is all a homeowner has to protect him or her from over-reaching boards, self-serving attorneys and criminal managers. It is wonderful if an association has none of these but when it does, HOA and Condo law should be there to help you.
Jeanne

JrO (California)
Posts: 7

Posted:

I agree with JeanneK3. A homeowner association board has potential access to a great deal of money and makes very expensive decisions regarding vendors and the general livability of the association. Without law, there is an enormous opportunity for fraud. I have seen it. I live in California, and my issue is that all condo law here is civil law. Even if the offence is criminal fraud or theft, it is difficult to prosecute because that offence has a low priority with our law enforcement agencies. That's why I applaud California's recent due diligence laws that force HOAs to release fiscal and management documents before the sale. I would urge anyone who is considering buying a condo in California to carefully consider those documents. They will tell you a lot about how the HOA is run and how fiscally healthy they are.

RandallS1 (Utah)
Posts: 1

Posted:

Whether a state government (legislature) implement laws for all CID's concerning HOA laws is difficult to answer. Some state legislatures engage in overreach and pass laws that make it more difficult and more expensive for BOD's to effectively govern their own associations; whereas, some states may actually help with constructive laws that directly effect HOA's ability to govern themselves. The real question should be: Does your state recognize any and all laws that directly effect HOA's consitute "state action"?

I do not know how many states have litigated that very important and vital issue. In other words some states may be HOA friendly and some states may be HOA unfriendly.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here