The Ohio Planned Community Law, O.R.C. § 5312.01, et seq., applies to any planned community in the state of Ohio. For more on applicability of provisions of this chapter, please read section 5312.02.
| Section Name | Section Number |
|---|---|
| Definitions. | § 5312.01 |
| Applicability of chapter; establishment of planned community. | § 5312.02 |
| Administration; owners association; board of directors. | § 5312.03 |
| Election of officers; powers; meetings. | § 5312.04 |
| Amendments to declaration or bylaws. | § 5312.05 |
| Powers of owner's association. | § 5312.06 |
| Examination of books and records. | § 5312.07 |
| Common elements; maintenance, repair and replacement. | § 5312.08 |
| Assignment or conveyance of rights or interest in common elements. | § 5312.09 |
| Common expense liability. | § 5312.10 |
| Individual lot assessments. | § 5312.11 |
| Liens. | § 5312.12 |
| Compliance with covenants, conditions and restrictions; action for damages. | § 5312.13 |
| Service of process. | § 5312.14 |
| Construction of chapter. | § 5312.15 |
| Solar energy collection device | § 5312.16 |
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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.
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.
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.
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.
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.
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.