Obligations of small HOAs in New Hampshire
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 New Hampshire:
New Hampshire Condominium Act, RSA chapter 356-B governs the formation, management, powers, and operation of all condominiums and condominium projects created after September 10, 1977. This Act replaced the New Hampshire Unit Ownership of Real Property Act. See also Condominium Rules. https://law.justia.com/codes/new-hampshire/2022/title-xxxi/title-356-b
New Hampshire Unit Ownership of Real Property Act, RSA chapter 479-A applies condominiums created before September 10, 1977. However, condominiums created under this Act are also subject to certain sections of the New Hampshire Unit Ownership of Real Property Act. See RSA 356-B:2.
New Hampshire Voluntary Corporations And Associations Act, RSA chapter 292. The Act governs non-profits with regard to corporate structure and procedure. If an association is organized as a non-profit, as is the case with most New Hampshire associations, it will be governed by the Voluntary Corporations and Associations Act.
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. New Hampshire chapter: http://www.caine.org
Fine limitations: Any condominium of more than 10 units, all "timesharing" developments, and subdivisions of more than 15 lots must register with, or formally be exempted by, the New Hampshire Attorney General. The registration (or exemption from the registration) must happen before the developer sells or offers for sale, any units, timeshare interests, or lots. This law also requires that the developer present all material facts about the property to potential buyers (a fact is "material" if it would influence the average person's decision to buy the property).
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!