Arkansas HOA Laws and Regulations
Know your association’s laws
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Know your association’s laws
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.
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:
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.
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.