Homeowners’ associations in North Dakota are not governed or regulated by any government act. Condo associations are regulated by the Condominium Ownership of Real Property Act but the rules stated do not apply to HOAs. Most community associations in ND are organized as non-profit and are therefore subject to all state Nonprofit Laws.
Community rules can vary drastically because of the lack of standardized government regulations. Community associations have the freedom to create and enforce as many or as few regulations as they desire so long as those regulations do not contradict any state or federal laws. Typically, homeowners will sign a contract to join an HOA upon the purchase of property within an association-managed community. Once the contract is signed, the homeowner is obligated to abide by any rules set forth by the association.
Homeowners Association’s Rights and Responsibilities
The initial board of directors must create and adopt the Articles of Incorporation and Bylaws, the governing documents for the HOA, and file them with the secretary of state to become a legal entity. Additional bylaws may also be created to provide special powers such as calling meetings, reaching quorums, and/or additional or substitute directors in the case of emergency.
The homeowners’ association has the right to collect regular assessments as described by community regulations. If an account becomes overdue, the HOA may impose liens on the property and in extreme cases, can even foreclose on the property despite on-time mortgage payments.
HOA Board Members
There can be no less than three members on the board of directors at any time. Board members may resign at any time with written notice. If there are any vacancies, the board may appoint a new member to fill the position unit the next election.
The board of directors is responsible for maintaining detailed records including meeting minutes and financial details. All association records must be made reasonably available to members. The board may charge for copies to be made but no additional charges may be levied.
Board meetings must take place at least annually, if not more frequently. Community members must be allowed to attend any meetings unless the board is discussing a sensitive matter such as legal counsel or about specific account information.
The HOA cannot make any amendments to the community articles or bylaws without permission from the homeowners. Any proposed amendments must be voted on at member meetings. Any amendments made to community documents must be filed with the Secretary of State to become valid.
Member meetings are to take place annually, if not more frequently as described by community bylaws. Special member meetings can be called at any time by a majority vote from the board of directors or written petition from at least 10% of the member voting power. Board members may also be elected or removed at member meetings.
Community Association Law in ND
HOA rules in North Dakota 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 firstname.lastname@example.org.