OHIO’S NEW HOMEOWNERS ASSOCIATION LAW GOING INTO EFFECT

First time the state enacts formal regulations for planned communities

AKRON, Ohio) Sept. 9, 2010 – A new Ohio law is going into effect that will, for the first time in the state’s history, govern the operations of homeowners associations (HOAs). The Ohio Planned Community Law (the “HOA Act”) provides specific requirements for creating and recording deed restrictions, bylaws, codes of regulation, rules and regulations, and other documentation. It also clarifies board membership, association fees, liens and voting rights.

The law governs all planned communities and will need to be understood by developers, builders, real estate agents, lenders and individual buyers and sellers of homes within these communities.

“The law not only provides a clear set of guidelines for those seeking to set up homeowners associations, it also protects the residents of planned communities,” said Blake Gerney, an OSBA-certified specialist in Business, Commercial and Industrial Real Property Law with Oldham Kramer. “The Ohio legislature’s intent was to include what have been considered best practices by many homeowners associations over the years.”

The new law goes into effect Sept. 10. It applies to newly created HOAs, as well as any that already exist. Those already existing will have 180 days from the law’s effective date to submit governing documents to the appropriate county recorder’s office for filing.

Creation of homeowners associations used to be, for the most part, left up to individual developers. Often the lack of recorded regulations would lead to confusion about individual homeowners’ rights and responsibilities. The law should help eliminate situations in which boards amend their regulations but fail to record them, or new homeowners buy property without being made aware of existing obligations or restrictions.

For more information about the new Ohio Planned Community Law, or to help ensure your homeowners association’s compliance, please contact Blake R. Gerney at Oldham Kramer.

About Oldham Kramer
Founded in 1994, Oldham Kramer is a full service law firm focusing in business and corporate law, employment, real estate, insurance, estate planning and probate, commercial litigation, and product liability.