Homeowners’ associations in Nebraska are typically organized as non-profit organizations and are therefore subject to the Nebraska Nonprofit Corporation Act. Beyond the nonprofit corporation act, there are no governing documents that specifically regulate HOAs.
Because there are no standardized regulations for HOAs, community rules can vary drastically. Community associations have the freedom to create and enforce as many or as few regulations as they desire so long as they do not contradict federal or state laws. Homeowners are obligated to obey any Covenants, Conditions, and Restrictions (CC&R) imposed by the homeowners’ association upon the purchase of property in a common interest community and signing the community contract.
Homeowners Association’s Rights and Responsibilities
HOAs are created to protect property values and to maintain common elements within the community. To provide funding for maintenance projects, homeowners’ associations have the power to collect assessments consistent with community bylaws. Liens may be placed on the property in the event of account delinquency. In extreme cases, HOAs may even foreclose on the property despite on-time mortgage payments.
It is the responsibility of the board of directors to maintain detailed records and make them readily available to association members. Records must include:
Minutes to all official meetings.
Articles of incorporation, bylaws, and any amendments.
Written communication with members for the past three years.
Financial statements for the past three years.
The most recent biennial report delivered to the Secretary of State.
Records, including financial records, must be provided to association members during reasonable hours. Copies must be sent to members upon written request.
A Biennial Report containing association details and a brief description of activities for the past two years must be compiled and sent to the Secretary of State. This report must be sent on odd years.
Before a member meeting, the board of directors is required to compile a list of all members eligible to vote at the meeting. The list must contain the name, address, phone number, and several votes for each member and must be made available to any association member upon request two days after the notice for the meeting is sent, up through the day of the meeting.
Annual member meetings are required to discuss activities and the financial condition of the association for the previous year along with voting on any proposed amendments and to elect members to the board of directors. Notice for meetings must be given at least 10 days, but no more than 60 days before the meeting takes place. If notice is sent via mail, at least 30 days’ notice is required. An action does not require a meeting if there is written approval from 80% of the voting power.
Homeowners have the right to view any association documents including financial documents. Depending on community CC&Rs, these documents may be readily available at specific times or it may require written notice to view. Copies of the documents can be made and sent to association members upon request. Unless it is otherwise specified in association regulations, each association member gets one vote.
Community Association Law in NE
HOA rules in Nebraska vary widely. It is important to read and understand all community regulations before purchasing property in an HOA-managed community. Most homeowners’ associations require the signing of a contract upon purchase.
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 email@example.com.