All homeowners’ associations in OH are subject to the Ohio Planned Community Law which outlines the rules and regulations applicable to HOAs. Condominium associations are set up under a different set of laws. Most community associations also choose to be registered as nonprofit organizations and are also subject to state Nonprofit Corporation Law.
Homeowners Association’s Rights and Responsibilities
HOAs in Ohio are responsible for the maintenance and repair of all common elements within the community. To raise funds, the community association has the power to collect regular assessments from homeowners.
If accounts become overdue, the association may charge interest on late assessments. If the problem persists, liens may be placed on the property and, in extreme cases, the HOA may even foreclose on the property despite on-time mortgage payments. Liens expire after five years.
The community budget must be reviewed annually. The board of directors has the power to amend and adopt new budgets. If the homeowners disagree with the updated budget, it may be amended further with a 50% vote.
Meetings of the executive board are not open to all members. Any homeowners who wish to sit in or participate in board meetings must have the permission of the board of directors. Board meetings may be held by any means, including electronically, as long as all members can participate. If the board is unanimous on a decision, no board meeting is required.
It is the responsibility of the board of directors to maintain detailed community records such as meeting minutes, financial documents, and homeowner account information. All community records must be made reasonably available to members except for any sensitive documents such as legal or specific account information.
Homeowners have the right to vote in board elections and to adopt amendments to the community declaration or bylaws. The allocation of votes is dependent upon the specific community declaration. If the declaration does not mention voting allocations, all members have an equal vote.
Amendments can be made to the community declaration and bylaws with 75% from homeowners. A different percentage may be required by community bylaws. The HOA may be terminated with a unanimous vote from the community.
Assessments are levied based on voting allocations. If one member of the community receives a higher allocation of votes, they also will receive higher assessments directly proportionate with their voting power.
All voting takes place at member meetings which must be held annually, if not more frequently as described by community bylaws. Special meetings may be called at any time by the association president, a majority vote from the board of directors, or by a petition signed by at least 50% of the voting power.
OH Planned Community Law
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.