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Association Powers and Decision Making

Association Powers and Decision Making

Each homeowner’s association decision must adhere to the following standards:
  • It must be within the scope of the association’s authority under the governing documents and the law;
  • It must be based upon a reasonable investigation;
  • It must be intended to serve the best interests of the association and the owners as a group;
  • It must be made in good faith; and
  • It must be reasonable considering the information available at the time the decision is made.
Additional standards may apply for specific types of decisions such as owner discipline or alteration approvals. Where the association has formally established policies or procedures, they must be uniformly applied and followed. But the fact that the association has permitted or approved a certain activity or alteration by a particular owner at one time does not mean that the association must permit or approve that same activity by the same or a different owner at a later time. In evaluating an association decision for compliance with these standards, the courts will defer to the board’s authority and presumed expertise.

The owner should begin by attempting to discuss the matter with the president, a director, committee chair or property manager. If this attempt does not yield satisfactory results, the owner should attend a board meeting or call an owner meeting to discuss the problem with the other owners. If the owner wishes to pursue the matter further, he/she should consult an attorney.

There is no governmental agency with authority to oversee homeowner associations. Association duties and standards must be enforced by owners and lenders through the court system or through some alternative dispute resolution process such as mediation or arbitration.

A homeowner association is typically not entitled to recover its attorney’s fees from an owner unless it prevails in a court proceeding or arbitration involving the enforcement of the governing documents. However, some association’s governing documents do allow for this so a review of your specific governing documents is needed.

Association Structure and Funds

Common Interest Developments (aka Homeowner Associations)

Director Election and Term

Enforcement and Disputes

Insurance and Liability

Maintenance, Alteration, and Defects

Meetings and Decisions

Mortgages and Liens

Officers, Managers, and Committees

Owner Assessments

Ownership and Possession

Use of Common Area

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