Board members and homeowners alike should know about the Arkansas HOA laws that govern their community. In doing so, they can protect the association from liability and understand their rights.
How to Form an HOA in Arkansas
Establishing a homeowners association in Arkansas requires the creation of a master deed, community plans, and community bylaws. A state-licensed engineer or architect must also certify the master deed. Both these documents should then be filed with the office of the county clerk.
When creating the master deed, associations must refer to Section 18-13-104 of the Arkansas Code. According to this section, the master deed should consist of the following:
- The land’s description as well as a description of the building, indicating their corresponding areas;
- A description of each apartment, including the number, area, location, and other pertinent identifiers;
- A description of the building’s general common elements as well as the limited common elements; and
-
The value of each apartment and property and the corresponding percentage relating to the co-owners expenses and rights when it comes to the common elements.
Arkansas Horizontal Property Act
The Arkansas Horizontal Property Act oversees the creation, management, authority, and operation of horizontal property regimes, including homeowners associations, that record a declaration or master deed. By recording these documents, the horizontal property regime is choosing to be bound by the Act.
You can find the Arkansas Horizontal Property Act within the Arkansas Code. It consists of 20 sections, covering topics such as insurance, dues and assessments, and taxation.
- Title.
- Definitions.
- Establishment of horizontal property regimes.
- Master deed.
- Plans to be attached to master deed.
- Additional units in excess of those described in master deed.
- Waiver and reestablishment of regimes.
- Bylaws.
- Modification of administration.
- Book of receipts and expenditures – Examination.
- Status of individual units.
- Ownership and valuation of separate units and common elements.
- Types of joint ownership.
- Common elements.
- Conveyances.
- Liability for expenses and assessments.
- Insurance generally.
- Application of insurance proceeds to reconstruction.
- Sharing of reconstruction costs when building not insured or indemnity insufficient.
- Taxation.
Arkansas HOA Laws on Corporate Governance
The Arkansas Nonprofit Corporation Act of 1993 outlines the provisions for the corporate procedure and structure of nonprofit corporations. The Act of 1993 applies to homeowners associations that incorporated as a non-profit corporation after December 31, 1993. For homeowners associations that incorporated before that date, corporate governance provisions can be found in the Arkansas Nonprofit Corporation Act of 1963.
The Act of 1993 consists of 17 subchapters, covering topics ranging from membership and meetings to voting and dissolutions.
- General Provisions
- Organization
- Purposes and Powers
- Names
- Office and Agent
- Members and Membership
- Members’ Meetings and Voting
- Directors and Officers
- [Reserved.]
- Amendment of Articles of Incorporation and Bylaws
- Merger
- Sale of Assets
- Distributions
- Dissolution
- Foreign Corporations
- Conversion to a Public Water Authority
- Transition Provisions
Fair Housing
The Fair Housing laws of Arkansas offers protection against discrimination based on color, race, national origin, sex, disability, religion, or familial status. It works similarly to the federal Fair Housing Act and the Americans with Disabilities Act.
If a resident feels that their HOA is discriminating against them based on any of these classes, they may file a complaint with the U.S. Department of Housing and Urban Development. They may also file a complaint on the state level with the Arkansas Fair Housing Commission. Alternatively, they can also sue the association in a federal or state court.
