There are no standardized regulations for the management of homeowners’ associations in Wyoming. Instead, common interest communities must be registered as nonprofit corporations and must, therefore, follow regulations described by the Wyoming Nonprofit Corporation Act (Title 17, Chapter 19). Condominium associations have additional regulations described in the Condominium Ownership Act (Title 34, Chapter 20).
Since no standardized regulations exist regarding 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 any state or federal laws. Homeowners will generally sign a contract when purchasing property within a common interest community that obligates them to obey all association rules.
Homeowners Association’s Rights and Responsibilities
To create the HOA, the declarant or initial board of directors must first draft and adopt the articles of incorporation. This will be the primary governing document for the association. The articles must be filed with the secretary of state to become valid.
The primary purpose of the homeowners’ association is the maintenance of common elements and the protection of property values within the community. To maintain a budget for maintenance costs, the HOA has the power to collect regular assessments from homeowners. If a homeowner gets behind on their payments, the association may place liens on the property and, in extreme cases, may even foreclose despite on-time mortgage payments.
It is the responsibility of the board of directors to maintain detailed records. All association records must be made available to members upon request at a reasonable time and location. Records should include:
Minutes of official meetings
Record of names, addresses, and number of votes for each member
Articles of incorporation, bylaws, and any amendments adopted
The most recent annual report filed with the secretary of state
Financial statements must be prepared annually and must include a balance sheet and a statement of operations for that year. Statements must be prepared using generally accepted accounting principles. Members may request access to financial statements at any time throughout the year. An additional report must be created and filed with the secretary of state each year.
Homeowners have the power to participate in elections for the board of directors and to vote on any amendments made to the articles of incorporation. Unless otherwise described by the articles, members are granted one vote each.
Member meetings are to be held annually at a fixed time following the bylaws. At these meetings, the president will present reports on the activities and financial condition of the HOA and propose any amendments being considered to the articles of incorporation. Board member elections may also be held during these meetings. Special meetings may also be called at any time throughout the year by the board of directors or by a petition signed by at least 5% of the voting power. The board of directors must provide notice of all meetings at least 10 days, but no more than 60 days before the meeting is scheduled to take place.
Amendments can be made to the articles of incorporation with a 2/3 vote from association members. For an amendment to be valid, it must be documented as an article of the amendment and filed with the secretary of state.
Community Association Law in WY
HOA rules in Wyoming 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.