Obligations of small HOAs in Kansas

Small or large, all homeowner associations share obligations and responsibilities to the owner members, the state and federal governments, and to the healthy financial and maintenance operation of the association. 

The value of every owner’s property, and often the ability to sell or refinance your HOA property may depend on keeping up with these obligations. 

Assessment collection: Set up regular billing and process for payment of owner assessments; deposit funds; collect delinquencies. 

Bill payment: All association bills, such as insurance, landscaping, or utilities, need somewhere to send a bill and someone responsible for paying it.

Bookkeeping:  Association financial records must be kept beginning with turnover.  

Common area maintenance: Maintain grounds and buildings as defined in declaration; maintain, repair, and replace the common elements of the association. 

Budgeting:  A community budget should be made prior to the beginning of the next fiscal year.  Any changes to expenses should be included. 

Insurance:  Insurance policy for the association is required by state law and the association bylaws.

Annual meeting: A minimum annual meeting to record association business and governance decisions.  By law, meeting minutes and association records must be accessible by owners.

Record keeping: All association business records, communication, meeting minutes, and contracts must be kept and available for owner inspection upon request. 

Resale reporting: Processing of financial and other reporting for resale/refinances in the community, and adding new owners to the association for dues payment and communication. 

Reserve study:  HOAs with shared elements such as buildings or amenities must have a plan to maintain and fund repairs and replacement of those elements.

State registration annual renewals:  Your HOA is a small business and requires a business registration with the Secretary of State. 

Compliance:  Maintaining compliance with HOA bylaws and state laws, including new statutes that affect HOA governance in your state.

Tax filing:  Federal tax filing annually. 

These are the fundamentals of HOA operations, although your state may---and likely will---have additional obligations.   Find a list of requirements specific to your state here.

These are the laws that govern HOAs in Kansas:

Kansas Uniform Common Interest Owners’ Bill of Rights Act (“KUCIOBORA”), K.S.A. §§ 58-4601 through K.S.A. 58-4623. The Act was enacted on January 1, 2011, to provide a legal framework for the operation and management of common interest communities (homeowners’ associations, condominiums, and cooperatives) to ensure the rights of homeowners and fair and effective operation of these private communities. https://www.ksrevisor.org/statutes/chapters/ch58/058_046_0001.html

Kansas Apartment Ownership Act, K.S.A. §§ 58-3101 through K.S.A. 58-3129. The Act governs the ownership, management, and operation of associations of apartment owners (condominiums and apartments), which expressly elect to be governed by the Act by recording a declaration with the office of the register of deeds in the county where the real estate is located.

Kansas Corporations Code, Chapter 17, Corporations, et seq. The Kansas statutes annotated under this chapter govern nonprofit corporations in Kansas. If an association is organized as a nonprofit corporation, it will be governed by this chapter, specifically concerning corporate structure and procedure.

These are the federal laws that apply to all HOAs in the United States:

https://www.hopb.co/federal-laws

The Community Associations Institute(CAI) is the international association for homeowner associations. CAI provides information, education, and resources to the homeowner volunteers who govern communities and the professionals who support them. Kansas chapter: https://www.caiheartland.com

This basic information about HOAs in your state is a helpful start, but should not be used as legal advice. If you have questions about interpreting your state’s legal requirements or the association’s governing documents, please contact an attorney in your state who specializes in community association law. Reach out for a referral if you’re not sure who to contact.

If you would like additional information about our small HOA management services, please contact us. We are here to help and have great resources for small HOAs!