Obligations of small HOAs in New York

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 York:

Homeowners’ Association Law: New York does not have a specific statute governing homeowners’ associations. However, if an association is organized as a non-profit, it will be governed by the New York Non-For-Profit Corporation Law. To the extent an association’s activities implicate any consumer protection statutes, the association is subject to the enforcement power of the New York Attorney General.New York Real Property Law (RPL), N.Y. Real Prop. Law §§ 1 through 602: The RPL includes numerous provisions governing the management, powers, and operation of real property in New York. https://ag.ny.gov/resources/individuals/tenants-homeowners/homeowners-associations

New York Condominium Act, N.Y. Real Prop. Law §§ 339-D through 330-LL: The Act governs the formation, management, powers, and operation of condominium associations formed under the Act. Most condominiums in New York are unincorporated associations formed under the Act.

New York Cooperative Corporations Law (CCO), N.Y. CooP. Corp. Law §§ 1-134, governs cooperative corporations organized under the statute. Cooperative corporations formed under this chapter are also subject to the Business Corporation Law ( CCO § 5).

New York Real Property Actions and Proceedings Law (RPAPL): The law includes numerous provisions governing the actions related to real property in New York, including condominiums and homeowners’ associations. The RPAPL specifically establishes standards applicable to adverse possession, action to recover real property, special proceedings by tenants of dwellings, action to foreclose a mortgage, and enforcement of covenants and easements, among other actions and proceedings.

New York Not-For-Profit Corporation Law, NPCL §§ 101 et. seq.: The law governs non-profits with regard to corporate structure and procedure. If an association is a non-profit, as is the case with most New York associations, it will be governed by the 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 York chapters: Hudson Valley: http://www.cai-hvny.org Long Island: http://www.cai-li.org Western NY: http://www.caiwny.org

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!