Maine HOA Laws

In Maine, homeowners associations must understand the various state laws that affect HOAs. Failure to comply with these Maine HOA laws can land the association in legal trouble.

Maine Condominium Act

The Maine Condominium Act offers legal guidance for the formation, alteration, management, and dissolution of condominiums. This Act applies to condominiums established after January 1, 1983. Condominiums established before that date can be subjected to this Act provided they make amendments to their instruments to indicate so.

You can find the Maine Condominium Act under Title 33, Chapter 31 of the Maine Revised Statutes. It consists of four articles, each one divided further into sections.

Article 1: General Provisions

• Short title
• Applicability
• Definitions
• Variation by agreement
• Separate titles and taxation
• Applicability of local laws and regulations
• Eminent Domain
• Supplemental general principles of law applicable
• Construction against implicit repeal
• Uniformity of application and construction
• Severability
• Unconscionable agreement or term of contract
• Obligation of good faith
• Remedies to be liberally administered
• Legal investments
• Effective date

Article 2: Creation, Alteration And Termination Of Condominiums

• Creation of condominium
• Unit boundaries
• Construction and validity of declaration and bylaws
• Description of units
• Contents of declaration
• Leasehold condominiums
• Allocations of common element interests, votes and common expense liabilities
• Limited common elements
• Plats and plans
• Exercise of development rights
• Alterations of units
• Relocation of boundaries between adjoining units
• Subdivision of units
• Easement for encroachments
• Use for sales purposes
• Easement to facilitate exercise of special declarant rights
• Amendment of declaration
• Termination of condominium
• Rights of secured lenders
• Master associations
• Merger or consolidation of condominiums

Article 3: Management Of The Condominium

• Organization of unit owners’ association
• Powers of unit owners’ association
• Executive board members and officers; declarant control
• Transfer of special declarant rights
• Termination of contracts and leases of declarant
• Bylaws
• Upkeep of the condominium
• Meetings
• Quorums
• Voting; proxies
• Tort and contract liability
• Alienation of common elements
• Insurance
• Surplus funds
• Assessments for common expenses
• Optional escrow of assessments
• Lien for assessments
• Other liens affecting the condominium
• Association records
• Association as trustee

Article 4: Protection Of Condominium Purchasers

• Applicability; waiver
• Liability for public offering statement requirements
• Public offering statement; general provisions
• Public offering statement; condominiums subject to development rights
• Public offering statement; condominiums containing conversion buildings
• Public offering statement; condominium securities
• Purchaser’s right to cancel
• Resales of units
• Escrow of deposits
• Release of liens
• Conversion buildings
• Express warranties of quality
• Implied warranties of quality
• Exclusion or modification of implied warranties of quality
• Statute of limitations for warranties
• Effect of violations on rights of action
• Labeling of promotional material
• Declarant’s obligation to complete and restore

Maine Unit Ownership Act

The Maine Unit Ownership Act is an older statute that offers a broader structure for overseeing the creation, operation, and management of condominiums established before January 1, 1983. Condominiums agree to abide by this Act through the recording of a declaration with the register of deeds in the county where the condominium resides.

You can find the Maine Unit Ownership Act under Title 33, Chapter 10 of the Maine Revised Statutes. It consists of two subchapters, each one divided further into sections.

Subchapter 1: Unit Ownership

• Short title
• Definitions
• Application
• Status of units
• Ownership of units
• Common elements
• Compliance with bylaws and rules and regulations
• Certain work prohibited
• Common profits and expenses
• Contents of declaration
• Contents of deeds of units
• Recording
• Mortgage and liens affecting a unit at time of first conveyance
• Withdrawal
• Subsequent resubmission
• Bylaws
• Contents of bylaws
• Books of receipts and expenditures; availability for examination
• Waiver of use of common elements; abandonment of unit
• Separate taxation
• Lien for common changes
• Foreclosure
• Voluntary conveyance
• Insurance
• Repair and reconstruction
• Actions
• Users subject to land
• Loans
• Time shares (REPEALED)

Subchapter 1-A: Membership Camping

• Definitions
• Requirements of membership camping
• Membership camping contract brokers; fees; escrow accounts; disclosures to new purchaser; notice of cancellation to purchaser
• Violation

Maine HOA Laws on Corporate Governance

The Maine Nonprofit Corporation Act oversees non-profit corporations in relation to their procedure, structure, and management. A majority of homeowners associations function as non-profit corporations. Therefore, they are bound by the provisions contained within this Act.

You can find the Maine Nonprofit Corporation Act under Title 13-B of the Maine Revised Statutes. It consists of 13 chapters, each one divided further into sections.

Chapter 1: General Provisions

• Short title
• Definitions
• Applicability
• Execution of documents
• Verification of documents
• Filing of documents
• Effect of corporate seal on document
• Computation of time for giving notice
• Reservation of power
• Effect of invalidity
• Certificate of existence; certificate of authority; certificate of fact

Chapter 2: Corporate Purposes And Powers

• Purposes
• General powers
• Defense of ultra vires

Chapter 3: Corporate Name; Registered Office And Agent; Service Of Process

• Corporate name (REPEALED)
• Corporate name
• Reserved name (REPEALED)
• Reserved name
• Registered name and renewal; termination (REPEALED)
• Registered name of foreign corporation
• Registered office and registered agent (REPEALED)
• Registered agent of domestic nonprofit corporation
• Registered agent; registered office; changes (REPEALED)
• Service of process on corporation (REPEALED)
• Service of process upon nonprofit corporation
• Service on nonresident directors of domestic corporations
• Assumed name of corporation (REPEALED)
• Assumed or fictitious name of corporation

Chapter 4: Organization Of Nonprofit Corporations

• Incorporators
• Members
• Articles of incorporation
• Filing of articles of incorporation
• Beginning of corporate existence; filing as conclusive evidence of incorporation; exceptions
• Powers of incorporators; organizational meeting
• Shares of stock and dividends prohibited

Chapter 6: Bylaws And Voting

• Bylaws
• Meetings of members
• Notice of members’ meetings
• Voting
• Quorum
• Unanimous action by members without a meeting

Chapter 7: Directors And Officers

• Board of directors
• Number and election of directors
• Vacancies
• Removal of directors
• Removal of directors by judicial proceeding
• Place and notice of directors’ meetings
• Quorum and vote of directors
• Unanimous action by directors without a meeting
• Informal or irregular action by directors
• Committees
• Officers
• Removal of officers
• Loans to directors and officers prohibited
• Transactions between a corporation and its directors and officers (REPEALED)
• Public benefit corporation; board
• Indemnification of officers, directors, employees and agents; insurance
• Books and records
• Duties of directors and officers (REPEALED)
• General standards for directors
• Director or officer conflict of interest
• Duties and authority of officers
• General standards for officers
• Misapplication of funds or assets of public benefit corporation

Chapter 8: Amendment Of Articles Of Incorporation

• Right to amend articles of incorporation
• Amendment before organizational meeting
• Procedure to amend articles of incorporation
• Articles of amendment
• Effect of amendment
• Restated articles of incorporation

Chapter 9: Mergers And Consolidation

• Procedure for merger
• Procedure for consolidation
• Approval of merger or consolidation
• Articles of merger or consolidation
• Effect of merger or consolidation
• Merger or consolidation of domestic and foreign corporations
• Limitations on merger or consolidation by public benefit corporation

Chapter 10: Sale And Other Dispositions Of Corporate Assets

• Sale of assets other than in regular course of activities

Chapter 11: Dissolution

• Voluntary dissolution
• Voluntary dissolution by incorporators
• Revocation of voluntary dissolution proceedings
• Effect of statement of revocation of voluntary dissolution proceedings
• Articles of dissolution
• Bylaws; disposal of assets
• Dissolution pursuant to court order
• Procedure in liquidation of corporation by court
• Filing of claims in liquidation proceedings
• Discontinuance of liquidation proceedings
• Decree of dissolution
• Deposit with Treasurer of State of undistributed assets
• Survival of remedy after dissolution; liquidating trustees
• Grounds for administrative dissolution
• Procedure for and effect of administrative dissolution
• Reinstatement following administrative dissolution
• Appeal from denial of reinstatement
• Reinstatement of suspended corporate charter
• Revival of nonprofit corporation after dissolution
• Late reinstatement of nonprofit corporation after administrative dissolution

Chapter 12: Foreign Corporations

• Authorization of foreign corporations to carry on activities in this State; certain activities not deemed carrying on affairs
• Application for authority
• Effect of authorization to carry on affairs in State
• Powers of foreign corporation
• Corporate name of foreign corporation
• Merger of foreign corporation authorized to carry on activities in State
• Amended application for authority
• Surrender of foreign corporation’s authority to carry on activities in State
• Foreign corporation’s termination of existence in jurisdiction of its incorporation; effect upon authority in this State
• Revocation of foreign corporation’s authority to carry on affairs in State (REPEALED)
• Grounds for revocation
• Procedure for and effect of revocation
• Appeal from revocation
• Suits by Attorney General against foreign corporations
• Service of process on authorized foreign corporations; registered office and registered agent (REPEALED)
• Service of process upon authorized foreign nonprofit corporation
• Registered agent of foreign nonprofit corporation
• Service of process on foreign corporation not authorized to carry on activities in State
• Effect of foreign corporation carrying on activities in State without authority
• Application of chapter to corporations previously authorized to carry on activities in State
• Members’ inspection of records of foreign corporations
• Service of process on Secretary of State for foreign corporation (REPEALED)

Chapter 13: Annual Reports: Powers Of Secretary Of State; Excuse; Miscellaneous

• Annual report of domestic and foreign corporations; excuse
• Annual report of domestic condominium corporations; excuse (REPEALED)
• Failure to file annual report; incorrect report; penalties (REPEALED)
• Amended annual report of domestic or foreign corporation
• Failure to file annual report; incorrect report; penalties
• Powers of Secretary of State
• False and misleading statements in documents required to be filed with Secretary of State
• Certified copies of documents filed with Secretary of State to be received in evidence
• Certified records of corporation as prima facie evidence of facts stated therein
• Short form certificate of change in corporate identity
• Practicing profession or occupation

Chapter 14: Fees

• Fees for filing documents and services
• Fees for copying, comparing and authenticating documents
• Expedited service
• Remittance to Treasurer of State
• Access to Secretary of State’s database
• Publications
• Public and mutual benefit corporation

Maine HOA Laws on Solar Panels

Many homeowners associations restrict the use of solar panels because they don’t coincide with the architectural guidelines of the community. A homeowner who wishes to install solar panels in Maine, though, has certain rights. According to the HOA laws of Maine, homeowners associations can’t prohibit members from installing a solar energy device on their residential property. The same law applies to condominiums and unit owners associations.

Fair Housing

The Maine Human Rights Act protects persons from discrimination in housing and public accommodations, among other things. According to the Act, associations may not discriminate against persons based on their race, color, national origin, ancestry, sex, sexual orientation, religion, familial status, or physical or mental disability. Discrimination based on receipt of public assistance is also prohibited.

This Act offers state-level protections similar to the federal Fair Housing Act. Any victims of discriminatory acts or practices can file a complaint with the U.S. Department of Housing and Urban Development or the Maine Human Rights Commission. On the other hand, they can also file a lawsuit in federal or state court.