In New York, many planned communities are managed by a homeowners association (HOA). The laws governing HOAs are set forth by various local and federal regulations, as well as by each individual HOA’s governing documents.
Who Regulates HOAs in New York?
There is no statutory provision that regulates HOAs on the state level in New York. The regulation of HOAs may be on a local level, federal level, or in the HOA’s governing documents. The governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and other rules and regulations.
HOAs in New York may be subject to applicable federal laws such as:
HOAs may be subject to certain state laws such as:
- New York Business Corporation Law
- New York Cooperative Corporations Law
- New York Not-for-Profit Corporation Act
- New York Real Property Actions & Proceedings Law
- New York Condominium Act
- New York Cooperative Policy Statement (CPS-7)
- New York Real Estate Syndicates Law
How to Find HOA Regulations in New York
HOA governing documents are not public records in the state of New York. However, any HOA document filed with the New York Secretary of State can be requested online or in writing. Business certificates can be found at the local county clerk’s office where the HOA property is located.
Additionally, the New York Secretary of State website lists general HOA information such as business name, address, initial filing date, and name of chief executive officer.
Furthermore, HOA building and conversion plans filed with the Department of Law can be searched on the Real Estate Finance Bureau website.
HOA Powers in New York
In New York, an HOA that is considered a corporation has the power to:
- Collect assessments for common expenses
- Impose charges for late payments of assessments
- Regulate common areas
- Collect charges to maintain and operate the common areas
- Levy reasonable fines
- Foreclose on a house for unpaid liens
Any other HOA business type will have its powers listed in the governing documents. Moreover, an HOA’s governing documents can grant added powers such as restrictions on membership, parking, fencing, and exterior paint color.
Can an HOA Impose Fines on a Homeowner in New York?
HOAs that oversee condos can impose fines on a homeowner in New York. The expenses imposed by HOAs, mortgage, and other housing costs paid by homeowners are not to exceed 30% of the household income. Types of fines and amounts are determined by the HOA’s governing documents.
Other HOA businesses will have specific provisions regarding imposing fines in their governing documents.
An HOA may not fine a homeowner for (or generally prohibit) any of the following:
- Using electric vehicles
- Installing electric vehicle charging stations
- Installing solar panels
- Displaying the American flag so long as the flag is displayed in a manner consistent with federal flag display law
- Installing satellite dishes and antennas
The governing documents of an HOA may include reasonable rules and regulations about the placement, manner, and display of any of the items listed above.
Can an HOA Take a Homeowner’s House in New York?
In New York, an HOA can foreclose on a homeowner’s house for unpaid liens. HOAs that look after condos are required to provide a notice of lien 60 days after charges were due. After a notice of lien has been sent and fines are still not paid, liens can be subject to foreclosure.
Other types of HOAs have certain conditions regarding liens and foreclosures in their governing documents.
There are no state laws in New York about HOA eviction ability. HOAs may be allowed to evict homeowners or tenants if rules and regulations are violated. Information about eviction procedures will be based on the HOAs governing documents or on the local level.
Can an HOA Enter a Homeowner’s Property in New York?
HOAs managing condos can enter a homeowner’s property in New York to conduct emergency repairs and prevent harm to common elements. All other types of HOA properties are subject to their governing documents.
A homeowner’s unit is only intended for the property owner’s use but has certain spaces that require maintenance by the HOA, such as balconies. Common elements are the shared spaces around the units owned by the HOA, such as elevators. Shared utilities may include water or trash removal directly provided by the HOA.
Before entering a property, except in the case of an emergency, an HOA should give prior notice to the homeowner. Typically, an HOA will give 1-2 weeks’ notice, but notice requirements are determined by the governing documents.
Where Do Homeowners File Complaints Against Their HOA in New York?
Where to file a complaint against an HOA in New York depends on the type of complaint.
For complaints concerning HOA fees, a homeowner can file a complaint with the Federal Trade Commission, the Consumer Financial Protection Bureau, or hire a private attorney. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
For complaints of housing discrimination, they can file a complaint with the New York Division of Human Rights, Office of the Attorney General, the U.S. Department of Urban Housing, or file a private lawsuit in New York state or federal court.
Alternatively, a homeowner with any other complaints can bring a claim in state court in the appropriate county.
Joining and Leaving an HOA in New York
There is no state provision in New York that governs joining and leaving an HOA. Generally, there are two types of HOAs that govern joining and leaving clauses. Documents explaining the HOA and its membership rules should be presented at the closing for a new owner’s home purchase.
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the HOA to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in New York
The process for dissolution of an HOA in New York may be set forth in the HOA’s governing documents. If it is not, there are two ways HOAs are able to be dissolved:
- HOA Corporation.
- Holds a meeting of members that vote at least ⅔ or a majority in favor of dissolution.
- Gains approval from the New York Department of Taxation and Finance.
- Files a Certificate of Dissolution with the New York Department of State.
- Not-for-Profit HOA Corporation.
- Holds a meeting of members that vote at least ⅔ in support of dissolution
- Develops a plan for dissolution approved by the New York Attorney General’s Office.
- Gains approval from the New York Department of Taxation and Finance.
- Files a Consent to Dissolution from a Corporation and Certificate of Dissolution to the New York Department of State.
Sources
- 1 N.Y. Bus. Corp. Law § 202
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(a) Each corporation, subject to any limitations provided in this
chapter or any other statute of this state or its certificate of
incorporation, shall have power in furtherance of its corporate
purposes… (16) To have and exercise all powers necessary or convenient to effect any or all of the purposes for which the corporation is formed.
Source Link - 2 N.Y. Real Prop. Law § 339-m
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The common profits of the property shall be distributed among, and the common expenses shall be charged to, the unit owners according to their respective common interests… the common expenses
charged to owners of other units where such lesser charges are necessary to ensure that the combined common expenses, mortgage and other housing costs paid by owners of units subject to such regulatory agreements do not exceed thirty percent of the household income limit specified in such regulatory agreements.
Source Link - 3 N.Y. Real Prop. Law § 343
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ELECTRIC VEHICLE RIGHTS ACT
Certain covenants, conditions, and restrictions of homeowners’ associations prohibited.
Source Link - 4 N.Y. Real Prop. Law § 339-ll
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- (a) Any covenant, restriction, or condition contained in any deed,
contract, security instrument, or other instrument affecting the
transfer or sale of any interest in the property, and any by-laws, that
either effectively prohibits or unreasonably restricts the installation
or use of an electric vehicle charging station within an owner’s unit or
in a designated parking space, including, but not limited to, a deeded
parking space, a parking space in an owner’s exclusive use common
element, or a parking space that is specifically designated for use by a particular owner, or is in conflict with the provisions of this section
shall be void and unenforceable.
Source Link - 5 N.Y. Real Prop. Law § 342
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SOLAR RIGHTS ACT
Certain covenants, conditions, and restrictions of homeowners’ associations prohibited.
Source Link - 6 4 U.S.C. § 5
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A condominium association, cooperative association, or residential real estate management association may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use.
Source Link - 7 Over-the-Air Reception Devices Rule (OTARD Rule)
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Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 8 N.Y. Real Prop. Law § 339-aa
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In the event that unpaid common charges are due, any member of the board of managers may file a notice of lien as described herein if no notice of lien has been filed within sixty days after the unpaid charges are due… Such lien may be foreclosed by suit authorized by and brought in the name of the board of managers, acting on behalf of the unit owners, in like manner as a mortgage of real property…
Source Link - 9 N.Y. Real Prop. Law § 339-i
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- The unit owners shall have the irrevocable right, to be exercised
by the board of managers, to have access to each unit from time to time during reasonable hours to the extent necessary for the operation of the property, or for making emergency repairs therein necessary to prevent damage to the common elements or to another unit or units, and the by-laws may contain reasonable rules and regulations for the administration of this provision as the privacy of the units and the protection of them and their contents from burglary, theft or larceny requires.
Source Link - 10 How to Handle Problems With Your Homeowners Associations
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Members of homeowners associations who are unhappy with how their association is acting (or not acting) often do not know what they can do. This paper is designed to tell such homeowners about some of their rights 1.In most cases there is no government agency that can help unhappy owners who are having problems with their homeowners association (HOA). The Attorney General’s office
regulates only the offer and sale of real estate securities (which includes interests in HOAs). It generally does not become involved in owners’ problems with boards of directors after the sponsor
is no longer in control of the board. However, this office may be able to help you if the sponsor of the HOA is not keeping the commitments which it made in the offering plan.
Source Link - 11 Can you refuse to join a Homeowners Association?
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… A voluntary homeowners association doesn’t require you to join. Voluntary HOAs are more like Community Associations. They work together to protect the community, improve the area, protect property prices, and hold events such as block parties. The key difference is that, since no contract has been signed, there is no enforcement; it’s strictly on a voluntary basis…. A mandatory HOA is precisely what it sounds like, a homeowners association that you must join. If you move into a community governed by a mandatory Homeowners Association, you don’t have the choice to opt out of joining and paying HOA dues.
Source Link - 12 N.Y. Bus. Corp. Law § 1001
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(a) A corporation may be dissolved under this article. Such
dissolution shall be authorized at a meeting of shareholders by (i) for
corporations the certificate of incorporation of which expressly
provides such or corporations incorporated after the effective date of
paragraph (b) of this section, a majority of the votes of all
outstanding shares entitled to vote thereon or (ii) for other
corporations, two-thirds of the votes of all outstanding shares entitled
to vote thereon…
Source Link - 13 N.Y. Bus. Corp. Law § 1004
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(a) The department shall not file such certificate unless the consent
of the state department of taxation and finance to the dissolution is
attached thereto. Upon such filing, the corporation is dissolved.
Source Link - 14 N.Y. Bus. Corp. Law § 1003
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(a) A certificate of dissolution, entitled “Certificate of dissolution
of ……… (name of corporation) under section 1003 of the Business
Corporation Law”, shall be signed and delivered to the department of
State.
Source Link - 15 N.Y. Not-for-Profit Corp. Law § 1002
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(a) Upon adopting a plan of dissolution and distribution of assets,
the board shall submit it to a vote of the members, if any, and such
plan shall be approved at a meeting of members by two-thirds vote… (c) Whenever a statute creating, or authorizing the formation of, a
corporation requires approval by a governmental body or officer for the formation of such corporation, dissolution shall not be authorized
without the approval of such body or officer… (2) Application to the attorney general for such approval shall be by verified petition, with the plan of dissolution and distribution of assets and certified copies of the consents prescribed by this section annexed thereto. (3) The attorney general may approve the petition if the corporation has adopted a plan…
Source Link - 16 N.Y. Not-for-Profit Corp. Law § 1004
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(a) The department of state shall not file a certificate of
dissolution unless the consent of the state department of taxation and
finance to the dissolution is attached thereto. Upon filing the
certificate, the corporation is dissolved.
Source Link
