HOA boards operate under state law. Not federal law. Not a universal set of rules. Each state has its own statutes governing community associations, and they differ in ways that matter.
A board that follows the wrong state's rules, or no rules at all, exposes itself to personal liability. Here are the compliance areas where ignorance is not a defense.
Resale certificates
When a unit sells, the buyer (or their lender, or the title company) needs information about the association's financial health. Most states require the HOA to provide a resale certificate or disclosure packet within a specific timeframe.
| State | Statute | Deadline | Fee Cap |
|---|---|---|---|
| WA | RCW 64.34.425 / 64.90.640 | 10 days | None specified |
| CA | Cal. Civ. Code 4525-4530 | 10 days | Reasonable cost |
| OR | ORS 94.670 | 10 days | Reasonable cost |
| FL | Fla. Stat. 720.30851 / 718.116 | 10-15 days | $100-$299 |
| TX | Tex. Prop. Code 207 / 82.157 | 7-10 business days | $75-$375 |
Miss the deadline and the buyer may be able to cancel the sale. Get the content wrong and the board faces liability for misrepresentation. These are not theoretical risks. Title companies and real estate attorneys enforce them.
CommunityPay generates resale certificates from live ledger data, mapped to your state's specific statutory requirements. Eight compliance profiles across six states.
Reserve fund requirements
Some states mandate that HOAs maintain reserve funds. Others strongly encourage it. A few are silent on the topic.
What matters is not just whether you have a reserve fund, but whether you have a reserve study (a professional analysis of what components need replacement and when), whether you are funding to the study's recommendations, and whether you have disclosed the funding status to homeowners.
After the Surfside condominium collapse in Florida (2021), several states tightened reserve requirements. Florida now requires milestone structural inspections and restricts the board's ability to waive reserve funding. More states will follow.
Open meeting requirements
Most states require that board meetings be open to homeowners, with advance notice. The specifics vary: how many days of notice, what constitutes proper notice, whether email counts, whether the board can hold executive sessions, and what topics must be discussed in open session.
Decisions made in meetings that violate open meeting requirements can be challenged and voided. The simplest protection: post meeting notices at least 7 days in advance, keep minutes of every meeting, and never make financial decisions in executive session.
Collection procedures
When homeowners do not pay assessments, the board must follow a specific collection process. Most states require written notice before late fees, a waiting period before liens, and defined procedures before foreclosure.
The process matters because:
- Skipping steps voids the lien in some states
- Improper notice exposes the board to counterclaims
- Fair Debt Collection Practices Act (FDCPA) may apply if the HOA uses a third-party collector
- Some states cap late fees, interest rates, or collection costs
Annual disclosures
Many states require the board to provide annual financial disclosures to homeowners. This may include the budget, financial statements, insurance coverage summaries, and reserve fund status.
California has some of the most detailed requirements (Cal. Civ. Code 5300-5320): annual budget report, assessment and reserve funding disclosure, insurance summary, and financial statement review.
What to do
- Identify your state statute. Find the specific law governing your type of association (condominium vs. planned community vs. cooperative). They are often different statutes with different requirements.
- Map your obligations. For each area above, document what your state requires, what your governing documents require (which may be stricter), and what you are actually doing.
- Close the gaps. Where you are not meeting requirements, fix it. Where you are unsure, consult a community association attorney in your state.
The board's fiduciary duty includes compliance. "We didn't know" is not a defense when the statute is public and the obligation is clear.