Understanding HOAs
What are Homeowners/Condominium Association (HOA/COA)?
A homeowner’s association (HOA) / condominium owners association (COA) is a non-profit organization, association, or corporation that acts on behalf of a group of owners of homes, townhouses, or condos, to maintain community standards, and manage shared spaces. A HOA can be thought of as private, mini-government for your community. When you buy a property in an HOA community, you automatically become a member of the association and you are legally bound to its governing documents.
The Players and their role in an HOA/COA
The Homeowners (Members): The homeowners are the foundation of the HOA. They have the right to vote in elections, attend ALL meetings (except executive session), and enjoy the common areas. Homeowners also have the duty to pay assessments and follow the rules.
The Board of Directors: These are homeowners elected by the members to run the association. They have a Fiduciary Duty to act in the best interests of the community as a whole. They set the budget, hire vendors, and enforce the rules. Note: For new developments, directors are often appointed by the declarant until the HOA transitions to the homeowners.
The Property Management Company: Most boards hire a professional company to handle the day-to-day operations. They are a contractor hired by the HOA. They may perform various duties contracted for by the board of directors such as collect fees and coordinate maintenance.
The Legal Framework of HOAs/ COAs
There is no one all-encompassing federal law that governs HOAs. The power of the HOA comes from state laws and the HOA’s governing documents. As a homeowner residing in an HOA, the following is a basic set of legally binding documents that define your rights and obligations.
State Laws: Idaho has specific laws that dictate how HOAs can operate, and the rights of homeowners. These state laws are a part of the Idaho HOA Act or are part of the state's corporate codes. These laws will be specifically addressed by IDHOANFC in a later chapter.
Governing Documents: These are the private laws and rules and regulations of your community to which you agreed. Each HOA will have governing documents that are only applicable to that association. The following three documents form the legal order for the community:
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs): This is the structure of the HOA. It is recorded in the county records and is legally tied to the deed of every property in the community. It outlines the rights and obligations of the homeowners and the association.
Bylaws: These are the rules for running the corporation itself—how boards are elected, how often both board and association meetings are held, the duties of officers, etc.
Rules and Regulations: These are more specific, day-to-day rules that the board may adopt (and change more easily than CC&Rs or Bylaws).
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs): A Cornerstone of Property Ownership
The Declaration of Covenants, Conditions, and Restrictions, commonly known as CC&Rs, is the fundamental legal document that shapes the rules and responsibilities for homeowners within an association. It is recorded with your county and is part of the “chain of title” for your property, meaning it's a permanent restriction on the land itself, no matter who owns it. It's difficult and expensive to amend, often requiring a supermajority vote (e.g., 67% or 75%) of all homeowners in the association.
What’s in the CCR’s:
Property Descriptions: At its core, the CC&Rs define the boundaries between individual private lots and common areas such as pools, parks, and roads.
Restrictions: This is the core of the CC&Rs. It establishes the rules that govern how properties can be used and maintained. These restrictions typically include architectural controls—such as approved exterior paint colors or bans on outbuildings—and use limitations, like prohibiting commercial activities in residential zones. Maintenance standards ensure that properties uphold the community’s aesthetic and value, requiring lawn care and upkeep.
Owner Obligations: The CC&Rs should also clearly outline the obligations of property owners, including the duty to pay association fees or assessments.
Association Powers: To enforce the rules and maintain community standards, the CC&Rs grant the HOA powers such as collecting fees, imposing liens on properties for unpaid dues, and levying fines or pursuing legal action when violations occur.
In summary, CC&Rs are the legal backbone that governs community living, balancing individual property rights with collective responsibilities. While sometimes complex and difficult to change, they play a crucial role in ensuring harmony within neighborhoods.
The Bylaws
If the CC&Rs are the constitution, the bylaws are the operating manual for the HOA corporation. They are less about what you can do with your house and more about how the HOA itself is run.
What’s in the Bylaws:
Board of Directors: Rules for how the HOA Board of Directors is structured, how many members it has, their terms of office, and their specific duties.
Elections and Meetings: Outlines how board members are elected, how annual or special meetings are called, and voting procedures.
Quorum Requirements: The minimum number of homeowners or board members that must be present to conduct official business.
Powers of Officers: Defines the roles of the President, Treasurer, and Secretary.
Rules and Regulations
These are the most specific and easily changed set of rules. The board can typically adopt or amend these rules without a full homeowner vote, as long as they don't conflict with the CC&Rs or Bylaws.
What’s in the Rules and Regulations:
Amenity Use: Pool hours, rules for the clubhouse gym, tennis court reservation system.
Parking Regulations: Where guests can park, restrictions on RVs or boats.
Aesthetic Details: Specific rules on trash can storage, holiday decorations (when they can go up and when they must come down), and political signs.