Homeowners associations are rapidly gaining in popularity in the United States. More and more homeowners are finding the security and ease of being part of a privately governed community appealing compared to the hassle of maintenance. Perhaps your neighborhood is lacking an HOA community, or maybe it has always been your dream to start one. Whatever the case may be, you may be wondering how to start an HOA. Here are a few steps to get you started.
How to Start an HOA the Right Way
Planned communities usually have HOAs already in operation. But if you move into a development that has yet to form its own HOA, you may want to take the task upon yourself. Starting an HOA in an existing neighborhood can be a complicated process, though, especially if you do not know where to begin. To help you out, here are some tips on how to start a homeowners association:
1. Educate Yourself on Laws and Procedures
The very first step you should take when looking to start an HOA is to educate yourself thoroughly on every topic relating to homeowners associations.
This includes becoming knowledgeable about any rules and regulations, local or state laws, and legal steps that must be taken to successfully and legally form and operate an HOA.
It is important to religiously follow these rules in order to form a solid community. Meet with other HOA owners for advice and read as much material as you can.
Your HOA will also need to hire a lawyer to help you out with the legal side of forming and running an association. When searching for a lawyer, make sure to take experience into account. Go for a lawyer who has previously or is currently serving an HOA.
2. Get a Feel for Local Interest
It is also important to do the proper research in the community to see how much interest there is and what homeowners are looking for in your particular neighborhood.
If no one wants to join the association, then there is likely no point in creating one. When starting out, making membership optional is helpful for garnering and maintaining interest.
3. Consider Insurance Early
Many HOAs make the mistake of not insuring themselves properly. In the early stages of forming the business, you must gain protection for your HOA by investing in insurance that protects you from any number of eventualities.
4. Select a High-Quality Team
A homeowners association is only as good as the individuals that run it. The people you gather to collaborate on this new and exciting project will have a great deal of influence. Be sure to choose a small but strong core of people who have knowledge, skill, and compatibility with one another.
5. Create Your Governing Documents
This part can be time-consuming, but it is a crucial step when forming a homeowners association. There is a handful of governing documents you must write for your HOA, including the bylaws and the CC&Rs (Covenant, Conditions & Restrictions). The CC&Rs are arguably the most vital, as they detail the rules residents must follow and how your HOA must be run.
6. Develop a Reasonable but Competitive HOA
When designing CC&Rs, choosing amenities, and planning new structures, there is always a delicate balance between being competitive with other local HOAs and keeping fees low enough to be reasonable. However, through trial and error, you will be able to determine what is truly important to the homeowners in your community and develop an HOA that achieves both of these goals.
7. Establish the Business
Once you have a solid structure for your community, it is time to formally set up a homeowners association and establish the business. Most choose to form a non-profit corporation or an LLC.
While establishing your business, you will be asked to provide a name for your business, pay fees, apply for a federal tax number, draft articles of incorporation, and establish bylaws, among other things.
8. Elect a Board
Once the business is established, it is time to elect an HOA board. This is an extremely important task because the board will set the tone for the community in the future. Here are some tips on how to set up an HOA board:
- Look for Skilled Candidates. Be sure to gather together a group of people who have strong skills in various areas. Search for people who have experience in finance or have knowledge of landscaping or maintenance.
- Passion Is Equally Important. While skills and a great deal of experience are preferred, passion is essential. Candidates who truly care about the community’s well-being should also be considered. Recruit those whose hearts are in the right place.
- Follow a Standard Procedure. If you want your HOA board elections to be successful, you must standardize your election process. This procedure must be found within your governing documents and must be followed for all elections.
- Document Everything. Documentation is one of the most critical parts of electing board members. Should anyone dispute the results, you can refer to your records to resolve the conflict.
The HOA board must fulfill a number of responsibilities for the community. Successful management of the HOA involves keeping accurate financial records, budgeting for operating expenses and the HOA’s future, enforcing rules and regulations uniformly, and maintaining community properties, among other things.
9. Hire an HOA Management Company
While not a mandatory step on how to start an HOA, hiring an HOA management company can be of great help. In fact, most associations partner with HOA management companies to help them run the HOA. These companies lighten the load of the board and are even more critical for a budding HOA.
The Pros and Cons of HOAs
When you are first deciding whether to form an HOA, you may wonder if there are any advantages to having one. Like most things in life, there are both pros and cons to creating an HOA.
Here are the benefits of an HOA:
- You do not have to worry about maintaining common areas like the community pool, gardens, and clubhouses.
- Services like trash removal, lawn care or landscaping, and security are usually provided by the HOA.
- An HOA helps maintain and improve curb appeal, thus increasing property values.
- If you are in conflict with another resident, you can settle your disputes through the HOA board, which acts as a mediator between and among members of the community.
- You can widen your circle and meet new people, such as your neighbors, at HOA gatherings.
Here are the disadvantages of an HOA:
- An HOA can impose restrictions on renting out your home.
- There are regular assessments — and, sometimes, special assessments — to pay for.
- There are limitations to what you can do as a homeowner, including changes to your own property, and you may have to get board approval before you can act.
How to Start an HOA Per State
Alabama
According to the Alabama Homeowners’ Association Act, HOAs formed on or after January 1, 2016, must file organizational documents as a nonprofit corporation. The filing includes a $25 fee for the name reservation (plus a $3 online fee), a $200 fee for the Certificate of Formation, and a $50 fee for additional required supplemental filings, which are filed separately with the Secretary of State.
To file a Certificate of Formation, an HOA should follow the steps below:
- Obtain a Name Reservation from the Secretary of State.
- File the original copy of the HOA’s Certificate of Formation with all necessary attachments as well as the Name Reservation Certification with the SOS.
To file the Supplement to Certificate of Formation, an HOA should follow the steps below:
- After the Certificate of Formation has been indexed, an HOA must file the Supplement to Certificate of Formation with all necessary attachments.
- Include a check payable to the Secretary of State for $50. The form contains the mailing instructions.
An HOA must also file additional documents such as:
- Articles of Incorporation (Certificate of Formation)
- Bylaws, resolutions, or other governing documents
- The original covenants, conditions, or conditions or restrictions
Other information or documents required by Alabama Code 1975 §35-20-5(c) and listed on page 2 of the Supplement to Certificate of Formation form.
- HOA indemnification and insurance (including for directors and officers)
- Fidelity bonds for any person or entity having custody or control of any funds
- Periodic audits of the financial records
- Power to acquire real and personal property for the benefit of the HOA and its members
- Power to hire and discharge managing agents and other employees, agents, and independent contractors
Alaska
The community’s Articles of Incorporation must be submitted to the state commissioner to establish a homeowners association or a common interest community. These articles include essential information about the community, such as its name, members, and all proposed rules and regulations that residents must adhere to. According to Section 10.20.151 of the Alaska Statutes, the following information must be included before filing:
- The name of the proposed community
- Rules and regulations that will govern the community, including provisions for asset distribution if the HOA is dissolved
- The number of directors on the initial board, along with their names and addresses
Arizona
In Arizona, forming an HOA requires drafting and filing the Articles of Incorporation under the Arizona Nonprofit Corporation Act, which legally establishes the HOA as an entity. After formation, the association is governed by a set of key documents, including the Declaration of Covenants, Conditions, and Restrictions and its bylaws.
The Arizona Planned Communities Act is also crucial, providing guidelines for the creation, modification, and management of planned communities. It supports the HOA’s governing documents to ensure compliance with state laws.
Arkansas
To establish a homeowners association in Arkansas, it is necessary to create a master deed, community plans, and bylaws. The master deed must be certified by a state-licensed engineer or architect. These documents should then be filed with the county clerk’s office.
When drafting the master deed, associations must adhere to Section 18-13-104 of the Arkansas Code, which requires the inclusion of:
- A description of the land and the building, specifying their respective areas;
- Details of each apartment, including its number, area, location, and other relevant identifiers;
- A description of the building’s general common elements and any limited common elements; and
- The value of each apartment and property, along with the corresponding percentage related to co-owners’ expenses and rights concerning the common elements.
California
In California, forming a homeowners association (HOA) involves following specific legal guidelines, particularly those in the California Corporations Code. An HOA can be established as either a nonprofit corporation or a non-profit mutual benefit corporation, which affects its formation and management processes. These regulations help ensure the HOA operates transparently and meets its members’ needs.
The Articles of Incorporation are vital documents officially establishing the HOA as a legal entity. They must align with the California Corporations Code and include details such as the HOA’s name, purpose, and principal office. To become a recognized legal entity, the HOA must file its Articles of Incorporation with the California Secretary of State. These filings create a public HOA record and may include financial statements and dissolution records.
Additionally, an HOA must create and record a Declaration of Covenants, Conditions, and Restrictions and a parcel map.
Incorporated homeowners associations are required to submit two forms each year to maintain their registration:
- They must file Form SI-CID with the Secretary of State within 90 days of the anniversary of their Articles of Incorporation filing; and
- They must also file Form SI-100 annually with the Secretary of State on the same date.
Colorado
In Colorado, the formation of homeowners associations is governed by the guidelines set forth by the Colorado Common Interest Ownership Act. To be legally recognized, an HOA must be properly established by filing a declaration with the county clerk and recorder where the property is located. This declaration includes important details such as the association’s powers, property rights, and the responsibilities of its members. An HOA must also record a community plat or map.
Colorado law requires that anyone buying property within an HOA automatically becomes a member, with an obligation to follow the association’s declarations, bylaws, and community rules.
All associations must register with the Colorado Division of Real Estate and file periodic reports with the Secretary of State. The initial registration fee is $44 as of this writing, and the renewal fee is $43. However, associations with less than $5,000 in annual revenue need not pay the fee.
Connecticut
In Connecticut, homeowners associations are usually formed as nonstock corporations. The Articles of Incorporation must be filed to create an HOA, specifying the association’s purpose, membership details, and basic structure.
Afterward, key governing documents like the declaration, bylaws, and rules and regulations must be prepared. These documents address various matters such as property use restrictions, maintenance obligations, and members’ rights and duties.
Delaware
A Certificate of Incorporation/Non-Stock Corporation must be filled out to create an HOA in Delaware. A person can obtain this form from www.de.gov under Business Services – Incorporation Forms.
After printing and completing the form, mail it to the following address:
DE Division of Corporations
401 Federal Street, Suite 4
Dover, DE 19901
The completed form must include a one-time fee of $139.00 ($89.00 filing fee and $50.00 Certified Copy Fee).
After finalizing the bylaws, they need to be sent via fax, email, or mail to the Delaware Relocation Trust Authority (RTA) for the proper registration of the HOA. There is no fee for submitting the bylaws.
Florida
In Florida, the Articles of Incorporation are essential for establishing an HOA as a legal entity. These documents must contain fundamental details like the association’s name, its purpose, and the location of its initial office. As required by Florida law, any association formed after October 1, 1995, must be incorporated, and its governing documents must be officially recorded in the county records.
Georgia
In Georgia, homeowners associations are generally established as nonprofit corporations by filing Articles of Incorporation with the Secretary of State. This process follows the Georgia Nonprofit Corporations Act, which outlines the necessary steps for legal recognition and ensures the association’s legal status. Entities must adhere to state requirements for incorporation.
The Georgia Property Owners Association Act governs HOAs in the state. Associations can opt into this Act by a two-thirds vote of the members and by recording a declaration in the county records.
Hawaii
In Hawaii, homeowners associations are generally set up as nonprofit corporations in accordance with the Hawaii Nonprofit Corporations Act. The process starts with registering the association with the Hawaii Business Registration Division. Founding members must draft and submit articles of incorporation, detailing the association’s purpose and the address of its principal office.
For condominiums and planned community associations, additional steps include creating a declaration of covenants, also known as CC&Rs (Covenants, Conditions & Restrictions), along with other necessary association documents. These documents function as deeds of trust, defining the rights and obligations of both the association and its members.
Idaho
To legally establish an HOA in Idaho, the organization must submit Articles of Incorporation to the Idaho Secretary of State. This step is crucial for HOAs operating as nonprofit corporations. The documents must specify the HOA’s name, its purpose, and the names and addresses of the board members. Upon approval by the Secretary of State, the HOA is officially recognized as a corporate entity in Idaho.
Illinois
To legally establish an HOA in Illinois, the organization must submit Articles of Incorporation to the Illinois Secretary of State. The Illinois General Not For Profit Corporation Act of 1986 governs nonprofit corporations.
Indiana
When starting a homeowners association, filing Articles of Incorporation with the state is crucial. This legal document specifies the HOA’s purpose, the location of its principal office, and other important details. Once the incorporation is complete, the next step is to create the bylaws, which provide the governing framework for the association and outline the rules and procedures for its management and operation.
Iowa
To incorporate an HOA in Iowa, a person must first file Articles of Incorporation with the Secretary of State. This process establishes the HOA as a nonprofit corporation under the Revised Iowa Nonprofit Corporation Act. The initial documents should detail the association’s primary structure and its purpose within the community.
Kansas
The initial step in forming an HOA is to draft and file the Articles of Incorporation with the Kansas Secretary of State. This document is crucial as it formalizes the HOA as a nonprofit entity and should specify the HOA’s purpose, official name, and principal place of business. It also lists the initial board of directors who will manage the association until the first member election takes place.
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) is a legally binding document that must be recorded with the county recorder’s office. It defines the powers, rights, and responsibilities of the association and its members, including provisions on assessments, maintenance, and property use restrictions within the HOA. It is essential that these provisions align with Kansas HOA laws to ensure enforceability.
Finally, the HOA must adopt bylaws, which govern the internal management of the organization. The bylaws outline procedures for meetings, board and officer elections, board duties, committee functions, and other aspects of governance. They work alongside the Declaration to manage daily operations and should be carefully drafted to avoid conflicts and ensure smooth community management.
Kentucky
In Kentucky, homeowners associations generally incorporate as nonprofit corporations through the Secretary of State. This status establishes the HOA’s legal standing and ability to operate as a separate entity. The incorporation process involves submitting specific documents that comply with state nonprofit corporation laws.
The necessary documents typically include the Articles of Incorporation, which define the HOA’s legal structure and purpose, and the bylaws, which outline the governance rules and procedures. The association must also maintain registered agent information to meet legal requirements and facilitate communication with regulatory bodies. A key document for an HOA is the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which must be recorded with the county.
Louisiana
The Louisiana Homeowners Association Act provides the rules and guidelines for establishing and operating homeowners associations in the state. To be recognized as valid, associations must file a Declaration and Articles of Incorporation, which must be publicly recorded.
For condominium communities, the Louisiana Condominium Act offers a legal framework for their creation, management, and operation. This act provides specific provisions that often complement those in the Homeowners Association Act.
In Louisiana, many HOAs are formed as nonprofit organizations and are governed by the Louisiana Nonprofit Corporation Act. This statute outlines the corporate structure and procedural requirements for nonprofit entities, including rules for bylaws, meetings, and the duties of directors and officers.
Maine
The Articles of Incorporation are a key legal document submitted to the Secretary of State to establish an HOA as a nonprofit corporation. This document specifies the association’s name, purpose, duration, initial registered agent and office, and the information of the incorporator. The Maine Nonprofit Corporation Act requires that these articles comply with state laws and regulations.
Maryland
To establish an HOA in Maryland, it is necessary to follow specific legal procedures, including creating and filing Articles of Incorporation with the State Department. These initial steps are crucial for the HOA’s legal recognition and must align with both state laws and the community’s specific needs.
The CC&Rs (Covenants, Conditions, and Restrictions) outline the duties of the HOA and its members, including maintenance responsibilities and the use of common areas. These provisions are recorded with the county land records office and apply to all current and future property owners in the community. The Maryland Condominium Act provides guidelines on how these documents should be structured and their enforceability.
Massachusetts
To form an HOA in Massachusetts, a person must first file a master deed that outlines the covenants, conditions, and restrictions (CC&Rs) for the property. This filing legally establishes the homeowners association as a corporation and ensures compliance with both state laws and federal regulations.
Michigan
In Michigan, an HOA is typically established by filing Articles of Incorporation with the Secretary of State. These articles provide the legal foundation for the association and include key details such as the association’s name, purpose, and the initial board of directors. If the HOA involves condominiums, it must also comply with the Michigan Condominium Act. Additionally, governing documents like the Bylaws and the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) are created to define the community’s operation and management. These documents cover various aspects, including architectural standards and assessment collection.
Minnesota
To establish an HOA in Minnesota, a group must first define the HOA’s purpose in accordance with the Minnesota Common Interest Ownership Act, which applies to most community associations formed after June 1, 1994.
The next essential step is filing with the Secretary of State. The HOA must submit organizational documents, including the Articles of Incorporation if it is formed as a corporation, to the Minnesota Secretary of State to be legally recognized.
A key document for any HOA is the declaration, which details the rights and responsibilities of both the association and its members. This document specifies the common and private properties and the rules governing their use. It must be recorded with the county where the property is located.
Mississippi
The process of forming an HOA in Mississippi starts with creating a Declaration of Covenants, Conditions, and Restrictions (CC&Rs). This legal document outlines the duties of the homeowners association and its members and is recorded with the county land records, making it binding on all properties within the HOA’s jurisdiction.
To operate legally, the HOA must file Articles of Incorporation with the Mississippi Secretary of State. These articles establish the HOA as a corporation, providing its legal foundation. Additionally, bylaws must be adopted to outline internal governance, including procedures for meetings, elections, and member rights, which help ensure the effective and orderly operation of the HOA.
Missouri
In Missouri, HOAs are typically structured as nonprofit corporations. As such, it is necessary to file an Articles of Incorporation with the Secretary of State. Condominium associations in Missouri adhere to the Missouri Uniform Condominium Act (for condos formed after September 28, 1983) and the Missouri Condominium Property Act (for condos formed before September 28, 1983).
Montana
Most homeowners associations in Montana are incorporated as non-profit organizations and are governed by the Montana Nonprofit Corporation Act. One or more persons may serve as the HOA’s incorporator and deliver the Articles of Incorporation to the Montana Secretary of State for filing.
Upon incorporation, associations must record their declaration and bylaws. Condominium organizations are governed by the Montana Unit Ownership Act. Associations must create their declaration and bylaws and file them with the Secretary of State.
If the property is located in a town or city, the association must also file the declaration with the city or town clerk. Amendments to the bylaws require 75% approval by the unit owners. A copy of the amended bylaws, certified by the secretary and presiding officer, must be recorded.
Nebraska
Most Nebraska homeowners associations are incorporated as non-profit organizations. They must file their Articles of Incorporation with the Nebraska Secretary of State. Moreover, they are governed by the Nebraska Nonprofit Corporation Act.
Upon incorporation, associations must record their declaration and bylaws. Condominium associations created before January 1, 1984, are governed by the Nebraska Condominium Property Act. Sole or co-owners of the property must record a master deed.
Condominium associations created after January 1, 1984, are governed by the Nebraska Condominium Act. The association must record its declaration in every county where the property is located.
Nevada
Homeowners associations in Nevada must be organized as a profit or non-profit organization. If it is incorporated as a nonprofit organization, it will be subject to the Nevada Nonprofit Corporation Act. One or more natural persons must file the Articles of Incorporation with the Nevada Secretary of State.
In addition, homeowners and condominium associations are governed by the Nevada Uniform Common-Interest Ownership Act. HOAs must record their declaration in each county where the association is located. The association must also create its bylaws to establish the rules for operation and governance.
New Hampshire
Most New Hampshire associations are organized as non-profit organizations subject to the New Hampshire Voluntary Corporations and Associations Act. Five or more persons of lawful age may form a corporation by articles of agreement. The incorporators must file the required documents with the New Hampshire Secretary of State.
Upon incorporation, associations must record their declaration. Condominium associations created before September 10, 1977, are subject to the New Hampshire Unit Ownership of Real Property Act.
Meanwhile, condominium associations created after September 10, 1977, are subject to the New Hampshire Condominium Act. These associations must record their condominium instruments — the declaration and bylaws. They must include all the units located or to be located on any part of the land in the site and floor plans. The association must record the condominium instruments in the registry of deeds of each county where any part of the condominium is located.
New Jersey
Most associations in New Jersey are incorporated as nonprofit organizations subject to the New Jersey Nonprofit Corporation Act. They generally file their documents with the New Jersey Secretary of State.
The New Jersey Condominium Act governs condominium associations created after January 7, 1970. Owners associations typically create foundational documents such as the Articles of Incorporation, declaration, and bylaws.
New Mexico
Most homeowners associations in New Mexico are incorporated as nonprofit organizations under the New Mexico Nonprofit Corporation Act. One or more persons must file the Articles of Incorporation with the New Mexico Secretary of State.
The New Mexico Homeowners Association Act governs homeowners associations in the state. The HOA must record its declaration. Associations formed after July 1, 2013, shall record a notice of homeowner association in the county clerk of each county where the HOA is located no later than 30 days after recording the declaration.
The New Mexico Building Ownership Act governs condominium associations formed before May 19, 1982. The declaration and any instrument shall be entitled to be recorded. Meanwhile, the New Mexico Condominium Act governs condominium associations formed after May 19, 1982. Condominium associations under the act must record a declaration in every county where the condominium is located.
New York
Most homeowners associations in New York are organized as nonprofit organizations governed by the New York Not-For-Profit Corporation Law. New York Corporations also follow the New York Business Corporation Law. For both laws, one or more natural persons who are at least 18 years old may incorporate the organization. Corporate existence shall begin upon filing the certificate of incorporation by the New York Department of State.
New York cooperatives are formed under the New York Cooperative Corporations Law. Five or more persons may form the corporation by filing a certificate of incorporation. Condominium associations are governed by the New York Condominium Act. The declaration and every instrument shall be entitled to be recorded with the Department of State.
North Carolina
All North Carolina homeowners associations must be incorporated. If an HOA is organized as a nonprofit, it is subject to the North Carolina Nonprofit Corporation Act. One or more persons may incorporate the organization by filing the Articles of Incorporation with the North Carolina Secretary of State.
Planned communities formed on or after January 1, 1999, are subject to the North Carolina Planned Community Act. The declaration shall be executed in the same way as a deed and must be recorded in each county where the planned community is located.
The North Carolina Unit Ownership Act governs condominiums formed before October 1, 1986. An owner or co-owners of the condominium shall record the declaration in the office of the register or deed in the county where it is located.
The North Carolina Condominium Act governs condominiums formed after October 1, 1986. The declaration shall be executed in the same way as a deed and recorded in each county where the condominium is located. All mechanical systems and structural components must be substantially completed following the design plans before recordation.
North Dakota
The North Dakota Nonprofit Corporations Act governs homeowners associations incorporated as nonprofit organizations. One or more individuals who are at least 18 years old may incorporate the association by filing the Articles of Incorporation with the North Dakota Secretary of State.
Condominium associations are governed by the North Dakota Condominium Ownership of Real Property. The sole owner or all owners (or sole lessee or all lessees) shall execute a declaration acknowledged by the sole or all owners (or by the sole lessee or all lessees) recorded in the office of the county recorder where the condominium is located.
Ohio
Most homeowners associations in Ohio are incorporated as nonprofit organizations under the Ohio Nonprofit Corporation Law. One or more persons must file the Articles of Incorporation with the Ohio Secretary of State.
The Ohio Planned Community Law governs homeowners associations in the state. The HOA must record its declaration and bylaws in the office of the recorder of each county where it is located.
The Ohio Condominium Property Act governs condominium associations. The association must file and record the declaration, bylaws, and condominium property plat in the office of the recorder of each county where it is located.
Oklahoma
Most homeowners associations in Oklahoma are incorporated as nonprofit organizations under the Oklahoma General Corporation Act. Any person, partnership, corporation, or association, alone or jointly with others, must file the certificate of incorporation with the Oklahoma Secretary of State, provided that at least three of the incorporators shall be required to incorporate as a nonprofit corporation.
The Oklahoma’s Real Estate Development Act (REDA) governs owners associations formed after June 5, 1975. The HOA shall be formed by executing an instrument acknowledged and signed by all owners of the real property. It shall be filed in the office of the county clerk of the county where the association is located.
Oklahoma’s Unit Ownership Estate Act governs condominium associations. An owner or co-owners of the condominium must record the declaration in the office of the county clerk of the county where the property is located.
Oregon
Homeowners and condominium associations in Oregon must be incorporated as a for profit or nonprofit organization. Nonprofit organizations are governed by the Oregon Nonprofit Corporation Act. The HOA must file a document with the Oregon Secretary of State. The document must be required by the Oregon Nonprofit Corporation Act or another law that requires or allows a person to file with the Secretary of State.
The Oregon Planned Community Act governs homeowners associations in the state. The HOA shall be created by recording a declaration with the county recording officer of each county where it is located. The declarant must organize the HOA as a nonprofit, adopt bylaws, and record them in the office of the recording officer of every county where the association is located.
If a Class I or Class II planned community’s governing documents created before January 1, 2002, that was not formed under Sections 94.550 to 94.783 do not provide for the HOA’s formation, at least 10% of the homeowners or any governing entity of the HOA may initiate formation. They shall call a meeting to vote on whether to form an organization and provide notice to the other homeowners.
The Oregon Condominium Act governs condominium associations. The declarant shall record the declaration, bylaws, and community plat in the office of the recording officer of each county where the property is located. If the declarant isn’t the fee owner, the fee owner and vendor under any instrument of sale must execute the declaration. Holders of any trust deed or mortgage must also execute the declaration if it contains any variable property.
Pennsylvania
If an association is organized as a nonprofit, it will be governed by the Pennsylvania Nonprofit Corporation Law of 1988. A duly authorized officer may file the Articles of Incorporation with the Pennsylvania Department of State.
The Pennsylvania Uniform Planned Community Act governs homeowners associations with over 12 units made after the Act’s effective date (February 3, 1997). The HOA must be made by recording a declaration executed in the same manner as a deed by every person whose interests in the real estate will be conveyed to the unit owners. The declaration must be recorded in every county where the community is located.
The Pennsylvania Real Estate Cooperative Act governs cooperative associations in Pennsylvania. A cooperative may be created by recording a declaration executed in the same manner as a deed, and afterward, recording an instrument conveying or leasing the real estate to the association. The declaration and other instruments must be recorded in each county where the cooperative is located.
The Pennsylvania Uniform Condominium Act governs condominium associations formed after the effective date of the Act (120 days from July 2, 1980). The condominium may be created by recording a declaration executed in the same manner as a deed by everyone whose interests will be conveyed to the unit owners. It shall be recorded in each county where the condominium is located.
Rhode Island
Most homeowners associations in Rhode Island are incorporated as nonprofit organizations under the Rhode Island Nonprofit Corporation Act. One or more persons must sign and deliver the Articles of Incorporation in duplicate to the Rhode Island Secretary of State.
The Rhode Island Condominium Ownership Act governs condominium associations formed before July 1, 1982. Meanwhile, the Rhode Island Condominium Act governs condominium associations formed after July 1, 1982. A condominium may be formed by recording a declaration in the municipal land evidence records in every municipality where the condominium is located.
South Carolina
Most homeowners associations in South Carolina are incorporated as nonprofit organizations under the South Carolina Nonprofit Corporation Act of 1994. A document satisfying the law’s requirements must be filed with the South Carolina Secretary of State. The document must be executed by the board’s presiding officer, its president, or another officer. If no directors exist, by an incorporator or fiduciary (if in the hands of a fiduciary, receiver, or trustee).
The South Carolina Homeowners Association Act governs homeowners associations in the state. In order to be enforceable, HOAs must record their governing documents in the clerk of court’s, Register of Mesne Conveyance (RMC), or register of deeds office in the county where it is located.
The South Carolina Horizontal Property Act governs horizontal property regimes. The sole owner, co-owners, or lessee must record a master deed or lease.
South Dakota
If a homeowners association in South Dakota is incorporated as a nonprofit organization, it shall be governed by the South Dakota Nonprofit Corporation Act. One or more natural persons by age of majority must file the Articles of Incorporation with the South Dakota Secretary of State.
The South Dakota Condominium Law governs condominium associations. An owner, co-owners, or the developer must record a master deed or lease to establish the condominium.
Tennessee
Most homeowners associations in Tennessee are incorporated as nonprofit organizations under the Tennessee Nonprofit Corporation Act. One or more persons must file a charter with the Tennessee Secretary of State.
The Tennessee Horizontal Property Act governs condominium associations made before January 1, 2009. The developer, owner, or co-owners must record the master deed or lease, or by plat, to establish the regime. All developments require a declaration, bylaws, and a plat.
The Tennessee Condominium Act of 2008 governs condominium associations made after January 1, 2009. An association may be formed by recording a declaration executed in the same manner as a deed. It shall be recorded in each county where the condominium is located.
Texas
Homeowners associations in Texas must be incorporated as nonprofit organizations under the Texas Nonprofit Corporation Act. Meanwhile, condominium associations may be organized as for-profit or nonprofit corporations. The association must file the Articles of Incorporation with the Texas Secretary of State.
The Texas Condominium Act governs condominium associations created before January 1, 1994. A developer or owner may establish the regime by recording a declaration, master deed, or master lease in the real property records of the county where it is located.
The Texas Uniform Condominium Act governs condominium associations created after January 1, 1994. A condominium may be formed by recording a declaration executed in the same manner as a deed by each person who has an interest in the real property that will be conveyed to unit owners. It shall be recorded in each county where the condominium is located.
Utah
Most homeowners associations in Utah are incorporated as nonprofit organizations under the Utah Revised Nonprofit Corporation Act. One or more natural persons age 18 or older must file the Articles of Incorporation with the Division of Corporations and Commercial Code.
The Utah Community Association Act governs homeowners associations in the state. The process begins by recording a declaration in the county where the association is located.
The Utah Condominium Ownership Act governs condominium associations. A declaration shall be recorded before the conveyance of any unit. The declaration, plat, and bylaws shall be executed and acknowledged by all owners and lessees of the land subject to the Act.
Vermont
Many homeowners associations in Vermont are incorporated as nonprofit organizations under the Vermont Nonprofit Corporation Act. One or more persons of majority age may incorporate the association by filing the Articles of Incorporation with the Vermont Secretary of State.
The Vermont Common Interest Ownership Act governs homeowners associations created after January 1, 1999. The HOA must record its declaration executed in the same manner as a master deed. It shall be recorded in each town where the community is located.
In condominiums, the declaration may not be recorded unless all mechanical systems and structural components of the building containing or comprising any units are substantially completed according to the plans.
Virginia
Most homeowners associations in Virginia are incorporated as nonprofit organizations under Virginia Nonstock Corporation Act. One or more persons must file the Articles of Incorporation with the State Corporation Commission of Virginia.
The Virginia Horizontal Property Act governs condominium associations established before July 1, 1974. A sole owner, the co-owners, or the developer must record a master deed or lease.
The Virginia Condominium Act governs condominium associations established after July 1, 1974. The association must record the condominium instruments in every city and county where the condominium is located.
Washington
If a homeowners association is incorporated as a nonprofit organization, it will be subject to the Washington Nonprofit Corporation Act. One or more individuals at least 18 years old must file the Articles of Incorporation with the Washington Secretary of State.
The Washington Uniform Common Interest Ownership Act governs homeowners associations formed after July 1, 2018. The HOA must record its map and declaration executed in the same manner as a deed in every county where it is located.
The Horizontal Property Regimes Act governs horizontal property regimes. The declaration and every instrument affecting the property shall be entitled to be recorded in the auditor’s office of the county where the regime is located.
The Washington Condominium Act governs condominium associations formed after July 1, 1990. A condominium is formed by recording a survey map and plans and a declaration executed in the same manner as a deed in any county recorder’s office where the property is located.
West Virginia
Most homeowners associations in West Virginia are incorporated as nonprofit organizations under the West Virginia Nonprofit Corporation Act. One or more persons must file the Articles of Incorporation with the West Virginia Secretary of State.
The West Virginia Uniform Common Interest Ownership Act governs homeowners associations, condominiums, and real estate cooperatives created after July 1, 1986. The HOA must record its declaration in each county where it is located.
The West Virginia Unit Property Act governs condominium associations. The declaration must be recorded to be effective.
Wisconsin
Most homeowners associations in Wisconsin are incorporated as nonstock organizations under the Wisconsin Nonstock Corporations Act. One or more persons must deliver the Articles of Incorporation to the Wisconsin Department of Financial Institutions for filing.
The Wisconsin Condominium Ownership Act governs condominium associations. The association must record the condominium instruments, including the declaration and plat, with the register of deeds in each county where the condominium is located.
Wyoming
Homeowners and condominium associations incorporated as nonprofit organizations are governed by the Wyoming Nonprofit Corporation Act. One or more persons must file the Articles of Incorporation with the Wyoming Secretary of State.
Frequently Asked Questions
Can anyone just start an HOA?
In theory, yes. Anyone can start an HOA, provided they file the necessary documents with their state. An HOA requires members, though, so the consent of the neighbors or voluntary members will also be needed.
What percentage of the proposed HOA needs to vote yes to start one?
To start an HOA, members must agree to join. Property owners who do not wish to join the HOA can simply refuse since it is not mandatory or pre-established. Therefore, only those who consent to joining will become members. In that sense, there is no required percentage of the proposed HOA that needs to vote yes to start one.
Start Your Own HOA Today
Establishing an HOA can be an exciting time for you and your neighborhood. The benefits of an HOA are undeniable and clearly outweigh the cons. While the process is long and requires a fair amount of hard work, it will all be worth it in the end. Just make sure to follow these tips on how to start an HOA, and you will be good to go.
If you are having trouble running your homeowners association, it may be time to follow in the footsteps of other HOAs that came before you. Contact an HOA management company like us for help.
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