Homeowners associations in Arkansas are also known as Property Owners’ Associations (POA). In legal documents, they are referred to as Horizontal Property Regimes. All HOAs/POAs must file as corporations with the state; most opt to file as non-profit and are therefore subject to the state’s non-profit laws. The Horizontal Property Act was created to provide additional details regarding the management of community associations.


Starting a Horizontal Property Regime (HOA)

To create a homeowners’ association or property owners’ association, the master deed of the community along with the adopted bylaws must be submitted to the office of the clerk in the county where the property is located. This deed must be certified by a state licensed architect or engineer. The deed must include:

  • A description of the land and units expressing boundaries.

  • A general description of each unit.

  • A description of all common areas.

  • Any planned additions or new constructions.

  • The value of each property and the percentage of the total common elements that are comprised of the property.

Property owners belonging to an HOA or POA in Arkansas get voting power based on the value of their property in the terms of a percentage of the whole. An association member with a property worth $200,000 will get a larger voting percentage compared to an association member with a property valued at $120,000. They will also receive a higher percentage of the cost of maintaining common areas.


Homeowners Association’s Rights and Responsibilities

The board of directors must create and maintain detailed financial records. This information must be readily available to all community members at convenient hours on working days that are set and announced for general knowledge. The board of directors is responsible for compiling and filing annual tax information for the community association.

To adopt any decisions regarding the community association, it must receive a majority vote of owners representing at least 51% of the total community value. Owners representing 2/3 of the total community value can alter the administration of the board of directors.

The board of directors may impose assessments and dues on homeowners to cover the cost of common area maintenance. They may also impose liens on the property if accounts become delinquent.


Arkansas Horizontal Property Act

To ensure that your community association is being run following all state and local laws, it helps to have a professional on your side. CSM has a team of experienced professionals that have worked with communities in almost every state in the US. Specializing in HOA financial management, we can help your board of directors manage association finances, write and submit documents, and prepare for audits. If you have any questions regarding state HOA laws and regulations, give us a call at (865) 315-7505, contact us online or email us at help@csmhoa.com.