Are you the board member or manager of a property owners association in Arkansas? In that case, you will need to familiarize yourself with the relevant state laws.
Why is this important, you ask?
Well, understanding state legislation is essential for ensuring compliance. It helps to make educated decisions, enforce the guidelines set by the state, and avoid legal disputes.
State laws oversee the administration of an HOA, in addition to other topics, such as assessment collection, dispute resolution, and other important matters, protecting the HOA's interests and maintaining a harmonious community.
A homeowners' association (HOA) in Arkansas is a kind of private legal entity that oversees and regulates a residential community, most commonly a housing development or condominium. These organizations are responsible for enforcing rules and regulations, collecting dues, and maintaining common spaces.
By supervising architectural additions, resolving disputes, arranging community events, and maintaining shared amenities, they hope to preserve property values and improve communal living standards.
In addition to state, federal, and local laws, HOAs in Arkansas are also regulated by their own internal governing documents, which often include Articles of Incorporation, Bylaws, and Declaration of Covenants, Conditions, and Restrictions.
Now that you understand the basics, let's move on to the state legislation found in the Arkansas Code that governs these entities.
The Horizontal Property Act oversees the establishment, administration, authority, and conduct of horizontal property regimes. An HOA must explicitly choose to be considered a horizontal property regime and be controlled by this law by filing a Master Deed or Declaration.
This law covers the organizational structure and procedures of nonprofit entities formed after the 31st of December 1993.
It governs associations that are incorporated as nonprofit corporations. HOAs created before the 31st of December 1993 are regulated by the Arkansas Nonprofit Corporation Act of 1963. To determine an HOA's corporate status, you can go to the Arkansas Secretary of State's website.
This legislation safeguards individuals' rights to equal access to housing opportunities, regardless of their religion, disability, ethnicity, color, national origin, gender, or familial status.
These laws are comparable to the federal Fair Housing Act (FHA) but offer protection at a state level. Housing discrimination victims can lodge a complaint with the HUD or the Arkansas Fair Housing Commission. They may also sue the offending HOA in federal or state court.
In Arkansas, a homeowners or condominium association can punish a property owner for breaking its regulations.
Although no laws govern these charges, they usually vary from $20 to upwards of $500. Keep in mind that the amount charged will depend on the nature of the offense and the duration of non-conformance. More information will be included in the governing documents.
The truth is that there are certain things that homeowners associations in Arkansas are not allowed to prohibit or ban. The display of the US national flag, for example, may not be restricted. Community members are also allowed to install solar panels, antennas, and satellite dishes.
However, HOAs are permitted to include rules on how these items are to be placed.
If you are feeling a little overwhelmed when thinking about the laws we have just discussed, then you are not alone. The truth is that the prospect of conforming to state, federal, and local laws can be daunting, but it doesn't have to be.
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The proper management of a homeowners association starts with a comprehensive understanding of Arkansas HOA laws. This article is a simple beginner's guide, so now that you know where to go, we recommend conducting additional studies to truly ensure that your HOA is compliant.
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