Does Ohio Law Require An HOA Board to Seek Member Approval For An Assessment Increase?
The Act states that an HOA board “may not increase any assessment for common expenses when the declaration limits the amount of such assessments unless the owners amend the declaration…” O.R.C. §5312.10(C)(2). An amendment to the declaration requires a vote of approval from 75% of the association members. O.R.C. §5312.05(A). If the declaration does not limit assessments or otherwise set forth the manner in which assessments are calculated, then the statutory means of determining assessments will apply.
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Does Ohio Law Permit Compensation of any Type for HOA Directors?
The Act is silent as to compensation of board-members and officers. However, among the permitted “powers of owner’s association” that an HOA may exercise “through its board of directors” are “powers…conferred by the declaration or bylaws…permitted to be exercised in [Ohio] by a nonprofit corporation…[or] necessary and proper for the government and operation of the owners association.” O.R.C. §5312.06. Ohio’s Nonprofit Corporation Law permits a nonprofit corporation to adopt regulations for the governance of the organization either within 90 days of the date of incorporation or, if later, by majority vote of the voting members.
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Does Ohio Law Require an HOA Board to Appoint Officers from the Elected Members of the Board?
The Act states that an HOA’s “declaration and bylaws shall provide for the following…The election of the board of directors…[and] The powers and duties of the board.” O.R.C. §5312.02(B). The Act then provides that the “board of directors…shall elect officers from the members of the board, to include a president, secretary, treasurer, and other officers as the board designates.” O.R.C. §5312.04(A) (emphasis added). Thus, to comply with the Act, an HOA must elect board-members in a manner established in its declaration and bylaws, and the board must then elect officers from among the elected board-members.
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Protection Against Suspected Retaliation
As association has a duty to treat owners equally and enforce rules evenly. Owners who believe they are being treated unfairly should become familiar with the declaration and bylaws to determine their rights vis-a-vis the association and board. In some situations, it would be appropriate for an owner who is being singled out for maltreatment to pursue a civil action against the board for money damages or injunctive relief.
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Which State Official has Jurisdiction over HOA’s in Ohio?
The Act does not delegate rulemaking or enforcement authority over HOA’s to any specific executive officer or agency. Ohio HOA’s are required to organize as nonprofit corporations. O.R.C. §5312.03(B). Thus, with regard to its organizational structure and general management, an association is subject to the authority of the Ohio Secretary of State. To the extent an HOA’s activities implicate any consumer protection statutes, the HOA is subject to the enforcement power of the Ohio Attorney General.
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Is The Association The Final Decision Maker In A Dispute?
Ultimately, the final decision maker in any dispute between an HOA and an owner is a court of competent jurisdiction. While an association can record a lien and suspend voting rights and common elements privileges for non-payment of assessments, a board does not otherwise have the authority to take “self-help” measures to enforce compliance and must enforce association rules through proper legal channels. If an owner believes the board is exceeding its powers or not meeting its obligations, the owner can institute a civil suit to resolve the dispute.
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What can Homeowners do if an HOA is not Responsive to Complaints?
Owners can voice their concerns at member meetings, which must be held at least once per year and can also be called by 50% of the members. O.R.C. §5312.04(C). Owners can attempt to amend the association’s declaration or bylaws through 75%-member vote. O.R.C. §5312.05. Any owner can seek election to the board and, if elected, propose changes to rules. O.R.C. §5312.03. In the event the board, association, or another owner is not in compliance with the declaration, bylaws, or rules adopted by the board, an owner can institute a civil action for enforcement. O.R.C. §5312.13.
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Can Community Members Change The Rules?
Yes. The owners can amend either the declaration or bylaws with the consent of 75% of the owners unless the declaration or bylaws specify otherwise. O.R.C. §5312.05. Owner consent can either be obtained in writing or at a meeting of owners. Id. The board is also empowered to adopt rules relating to management of the common elements “and any other rules as the declaration provides.” O.R.C. 5312.06(D)(5). Rules adopted by the board can be amended or repealed by the board. A board can only adopt rules relating to matters within its authority.
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Can You Ever Sue The HOA?
Yes. Both the HOA itself and any owner have the right to bring a civil suit to enforce compliance with the declaration, bylaws, and association rules. O.R.C. §5312.13. A plaintiff may seek money damages or injunctive relief (an order from the court requiring a party either take or refrain from taking certain action), along with court costs and reasonable attorney’s fees. Id. Jurisdiction lies with the Court of Common Pleas of the county in which the association is located.
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Amicably Resolving HOA Disputes
In most cases, good communication and the democratic process are sufficient to resolve problems with a community association. Attendance at member meetings, voting, and simply speaking with board-members often goes a long way toward resolving disputes that might otherwise seem implacable. Ohio law requires HOA’s to hold owner meetings at least once per year, and special meetings can be called by the president, the board, or a majority of owners. Members can voice concerns over how the board is enforcing association rules or performing obligations, and the board and homeowners can work cooperatively toward solutions.
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Things to Consider When Purchasing a Home in an HOA Community
Before purchasing a home that’s part of a homeowners association, you should research the community’s covenants and assessments, both of which will be set forth in the declaration and bylaws. The HOA’s board or the seller can usually provide copies, or the documents can be viewed in the county land records, which are often available online. Remember, when you accept the deed to a property, you are agreeing to be bound by any covenants that come with it. So, make sure you know what you’re getting into.
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What Does an HOA Do?
A homeowners association’s primary functions are to maintain common areas within the community and enforce restrictions and covenants. Common areas (or “common elements” in the statute) are the property within a development that is collectively owned by all homeowners through the association. Common elements might include private roads, a community pool, playground, or other recreational facilities, or - in the case of a condo association - the portions of the building that are not part of any particular owner’s unit, like the roof, elevator, or lobby.
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Where do HOAs Get their Authority?
A homeowners’ association or condominium association derives its power from its governing documents, including a declaration and bylaws recorded in the county land records, and from state statutes authorizing community associations. In Ohio, homeowners and condominium associations are authorized by the Ohio Planned Community Law and Condominium Law, enacted as Chapters 5310 and 5311 of the Ohio Code, respectively.
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