Overview
Your homeowners association (HOA) is a nonprofit corporation that manages the shared interests of the community. Its powers are defined by the governing documents—primarily the Declaration (CC&Rs), Bylaws, and state statutes. These powers allow the HOA to operate efficiently while protecting the rights of individual homeowners.
Powers of the Association
The HOA’s primary powers include the ability to:
Collect assessments and manage community funds
Maintain and repair common areas and amenities
Enforce the community’s governing documents
Enter contracts with vendors or service providers
Adopt and enforce Rules and Regulations
Purchase insurance for the association
Represent the community in legal matters
All powers must be exercised in the best interest of the homeowners and consistent with the association’s documents.
Limitations on HOA Authority
The HOA’s powers are not unlimited. The Board and management must follow the association’s legal framework and act within the scope of authority granted to them.
Common limitations include:
The HOA cannot make rules that conflict with state or federal law.
The Board cannot spend funds beyond what is authorized in the approved budget.
The HOA cannot modify property rights without homeowner approval (such as restricting access to property not owned by the association).
The association must apply all rules consistently and fairly.
Transparency, due process, and homeowner rights are key principles that guide how powers are exercised.
Checks and Balances
Homeowners have important rights to ensure accountability:
The right to attend Board and annual meetings
The right to review certain financial and governing documents
The right to vote in elections and approve major changes
The right to appeal violations or fines
These checks ensure the HOA operates fairly and for the collective good of the community.
State Law and Governing Documents
The HOA must comply with applicable state statutes—such as the Indiana Homeowners Association Act or similar laws in other states—along with its recorded Declaration, Articles of Incorporation, Bylaws, and adopted Rules.
If a conflict exists between these documents, state law generally takes priority.
Contact
For general questions about HOA authority or your community’s governing documents, email homeowners@yourhoahelp.com.
Importance
Understanding the HOA’s powers and limitations helps homeowners recognize how decisions are made and ensures that both the Board and members act within the community’s legal and ethical framework.