Oregon HOA laws regulate how community associations operate in the state. These laws are integral to ensuring homeowners’ rights and associations’ authority. Board members must understand the provisions of these laws to ensure compliance.
What are the Oregon HOA Laws?
Most states have their own laws that specifically govern the management and operation of HOAs and condominium associations. Oregon is no different.
Here are the Oregon homeowners association laws every board member must know about.
Oregon Planned Community Act
One of the most notable HOA laws in Oregon is the Planned Community Act. Found under Chapter 94 of the Oregon Revised Statutes, this Act regulates homeowners associations in the state.
The Act covers the formation, management, and operation of planned communities. It discusses amendments to the governing documents, reserve account requirements, meeting notices, annual budget adoptions, voting rights, recordkeeping and inspection, liens, and foreclosures. The Act also provides for the rights of homeowners and the duties of board members.
Oregon Condominium Act
Found under Chapter 100 of the Oregon Revised Statutes, the Condominium Act serves as the legal basis for condo associations in the state. It covers the formation, management, and operation of such communities.
Similar to the Planned Community Act, the Condominium Act discusses several key topics. These include the annual budget, meeting notices, voting rights, maintenance, record inspections, liens, and foreclosures.
Oregon Nonprofit Corporation Act
Another significant Oregon HOA statute is the Nonprofit Corporation Act. Found under Chapter 65, this Act regulates nonprofit corporations in the state.
In Oregon, HOAs and condominiums must be structured as either for-profit or nonprofit entities. Most associations choose to incorporate as nonprofit organizations.
The Nonprofit Corporation Act covers topics such as board meetings, quorum and voting requirements, qualifications and terms of directors, and elections. It also discusses the removal or resignation of directors and how to address those vacancies.
Oregon Unfair Debt Collection Practices Act
The ODCPA is the state’s answer to the federal Fair Debt Collection Practices Act. This Act regulates debt collections in Oregon.
Under this Act, aggressive, unfair, and discriminatory debt-collection practices are illegal. Debt collectors must comply with the ODCPA, which requires certain disclosures and protects consumers’ rights.
While the Act primarily applies to debt collectors such as collection agencies, HOAs, and condos must still be aware of its provisions. A court may find that the ODCPA applies to associations as well.
Oregon Unlawful Discrimination Act
The Oregon Unlawful Discrimination Act (OUDA) prohibits discrimination against homeowners based on their national origins, race, marital status, gender, or disability. It offers state-level protections similar to the federal Fair Housing Act.
The OUDA covers a wide range of topics, such as housing, public accommodations, and employment. It requires equal treatment and opportunity for everyone. If homeowners find that their HOA or condo has violated the Act, they may file a complaint with the Oregon Bureau of Labor and Industries.
Understanding Oregon Local Laws
In addition to statewide regulations, there may be laws that apply to cities, counties, or municipalities. Since Oregon has countless of these, board members must take it upon themselves to understand the local laws and ordinances that apply to their communities.
Unenforceable HOA Rules
According to Oregon HOA laws, associations in the state are not allowed to ban the use or installation of certain things. These include the following:
- Antennas and satellite dishes (as protected by the federal OTARD Rule)
- Electric vehicle charging stations (ORS 94.762 and ORS 100.627)
- The display of the U.S. flag (provided homeowners do so in accordance with the U.S. Flag Code)
- Solar panels (under ORS 94.778 for homeowners associations)
While associations can’t impose a blanket prohibition on the above items, they can enforce rules concerning their placement. That said, these rules must be written in the governing documents; otherwise, they are unenforceable.
Frequently Asked Questions on Oregon HOA Laws
Can you refuse to join an HOA in Oregon?
There are two types of HOAs: voluntary and mandatory associations. In voluntary associations, membership is voluntary. This means homeowners can choose to join the HOA or not.
On the other hand, mandatory associations come with automatic membership. Once a person buys a home in the community, they automatically and involuntarily become a member.
When looking for a house, it is important for buyers to find out whether there is an HOA and whether membership is voluntary. Such information is usually provided by the seller or seller’s agent, as well as through the disclosure documents.
Can homeowners associations in Oregon collect fees?
Yes, homeowners associations in Oregon can collect fees or dues (ORS 94.630 and ORS 100.405). The association uses these fees to pay for various expenses necessary to keep the community running.
Meanwhile, homeowners are obligated to pay these fees. This obligation typically comes with membership to the association.
Can an HOA enforce rules in Oregon?
Yes, homeowners associations do have the authority to enforce rules in Oregon (ORS 94.630 and ORS 100.405). That said, these rules must be clearly written in the governing documents. These documents include the CC&Rs, bylaws, and the operating rules.
Can my HOA fine me?
Yes, associations do have the authority to impose monetary penalties for violations of the rules (ORS 94.630 and ORS 100.405). Homeowners are obligated to adhere to the community’s rules. Breaking these rules can result in a number of possible consequences, including fines.
That said, associations must first provide written notice and an opportunity to be heard prior to imposing the fine. The fine must also be based on a schedule found in the association’s governing documents.
Are HOA foreclosures legal in Oregon?
Yes, associations can place a lien on a property and subsequently foreclose on it in Oregon. When a homeowner stops paying their dues, the association can take action by attaching a lien to the property. Should the owner still fail to resolve the lien, the association can pursue foreclosure proceedings.
A Helping Hand
Board members must familiarize themselves with the various Oregon HOA laws that apply to community associations. Unfortunately, many self-managed boards struggle to keep up with these laws and ever-changing regulations. These boards would be wise to hire a professional HOA management company.
CWD Group helps community associations navigate the ins and outs of legal compliance in Oregon. Call us today at 503-488-2008 or contact us online to learn more!
