What laws govern a HOA?

A home owners' association (HOA) is a group created by a real estate development to oversee the maintenance and management of the development's common areas and assets. Although initiated by the property developer, the developer eventually relinquishes all managerial control to the home owners upon the sale of a specified number of houses. Purchasers of homes in the development may legally be required to serve on the association panel. HOAs are generally governed by state laws which may vary by jurisdiction.

HOA Responsibilities

An HOA governs and regulates certain properties such as condominiums, townhomes or a community of homes. The HOA provides the rules and regulations as well as the conditions that allow purchases to occupy the real estate premises. Additionally, the HOA mandates what can and cannot be done on the premises and the shared areas. It must maintain shared premises and has the authority to collect fees toward this maintenance.

Laws that Govern HOAs

Under many state laws, an HOA is considered a Common Interest Development (CID) and is thereby subject to various laws including the Civil Code, any Corporation Code, the Subdivided Lands Act of the Business and Professions Code, Civil Procedure Code, aw well as the Vehicle Code. Other codes and laws may also govern. To prevent confusion, some states like California have codified HOA legislation under one act. In California this act is called the Davis-Stirling Common Interest Development Act.

HOAs must legally comply with all of these laws including any criminal codes. For example, the Subdivided Lands Act governs the regulations regarding the sales of newly-constructed homes that are part of the HOA real estate.

If you have further questions regarding HOAs, consult with a real estate attorney who can answer your inquiries.