There are certain things homeowners associations can’t do under Kentucky HOA laws. Violating these statutes can result in legal liability. The best way to avoid that is to familiarize yourself with the different laws that govern associations.
How to Establish an HOA in Kentucky
To create a common interest community in Kansas, the association must record a master deed and declaration with the county recorder’s office. The declaration must include the following:
- Community rules and regulations
- Board of director powers and limitations
- Rules and procedure for dues collection
- Election rules
On the other hand, the must deed must consist of the following:
- A detailed description of the land
- Unit and area descriptions
- A description of the common elements in the community
- Allocation of votes per unit
Kentucky Horizontal Property Law
The Kentucky Horizontal Property Law serves as a guide for the horizontal property regimes established prior to January 1, 2011. It provides a legal structure for the creation of the regime as well as for common expenses, insurance, liens, association powers, and maintenance.
You can find the Kentucky Horizontal Property Law under Sections 381.805 through 381.910 of the Kentucky Revised Statutes. It consists of 26 sections, namely:
- Short title.
- Definitions for KRS 381.805 to 381.910.
- Establishment of a condominium property regime.
- Conveyance of units — Recordation.
- Joint or common ownership.
- Requirements for subdividing units.
- Ownership of unit — Use of general common elements.
- Recording — Requirements of master deed or lease — Record of floor plans.
- Master deed exceptions.
- Individual deeds — Contents.
- Repealed, 1974.
- Waiver of regime — Effect of encumbrances.
- Subsequent reestablishment of regime.
- Administration of building.
- Repealed, 2012.
- Maintenance — Pro rata contribution — Adjustments.
- Exemptions.
- Repealed, 1966.
- Lien for unpaid assessments — Foreclosure — Suit.
- Insurance.
- Destruction — Reconstruction.
- Repealed, 1974.
- Individual and common liabilities for injuries or damages.
- Tax assessments — Individual liability — Forfeiture or sale.
- Interpretation of KRS 381.805 to 381.910.
- Planning and zoning.
The Kentucky Condominium Act
The Kentucky Condominium Act oversees the creation, authority, operation, and management of condominiums in the state. It also contains provisions concerning records retention, common elements, and insurance. This Act applies to condominiums established after January 1, 2011. However, it is worth noting that some provisions of this Act also apply to older and newer condominium regimes established before or after that date.
You can find the Kentucky Condominium Act under Sections 381.9101 through 381.9207 of the Kentucky Revised Statutes. It consists of four sections; each one divided further into sections.
Section 1 – General Provisions
- Short title for KRS 381.9101 to 381.9207.
- Application and construction of KRS 381.9101 to 381.9207.
- Definitions for KRS 381.9101 to 381.9207.
- Variation by agreement.
- Separate assessments, titles, and taxation.
- Applicability of local ordinances, regulations, building codes, or other real estate use law.
- Eminent domain.
- Supplemental general principles of law applicable to KRS 381.9101 to 381.9207.
- Construction against implicit repeal of KRS 381.9101 to 381.9207.
- Purposes and policies of KRS 381.9101 to 381.9207 — Kentucky Condominium Act to be liberally construed.
- Severability of invalid provision or application.
- Obligation of good faith.
Section 2 – Creation, Alteration, And Termination of Condominiums
- Construction and validity of declaration and bylaws.
- Description of units.
- Contents of declaration.
- Leasehold condominiums.
- Allocation of common element interests, votes, and common expense liabilities.
- Limited common elements.
- Plats and plans.
- Exercise of development rights.
- Alteration of units.
- Relocation of boundaries between adjoining units.
- Subdivision of units.
- Easement for encroachments.
- Easement rights.
- Amendment of declaration.
- Termination of condominium.
- Rights of secured lenders.
- Master associations.
- Merger or consolidation of condominiums.
Section 3 – Management of Condominium
- Organization of unit owners’ association.
- Powers of unit owners’ association — Emergency assessments.
- Executive board members and officers.
- Discharge of board member’s duties — Standards for monetary damages and injunctive relief.
- Transfer of special declarant rights.
- Bylaws.
- Upkeep of condominium — Expenses and income in connection with real estate subject to development rights.
- Meetings of the association.
- Quorums.
- Voting — Proxies.
- Tort and contract liability.
- Conveyance or encumbrance of common elements.
- Insurance.
- Surplus funds.
- Assessments for common expenses.
- Lien for assessments.
- Other liens affecting the condominium.
- Association records — Financial report.
- Association as trustee.
Section 4 – Protection of Condominium Purchasers
- Applicability of KRS 381.9201, 381.9205, and 381.9207 — Modification or waiver by agreement — Certificate not required in certain cases.
- Documentation to be furnished by seller of unit — Certificate.
- Release of liens.
- Declarant’s obligation to complete and restore.
Kentucky HOA Laws on Corporate Governance
Unlike some other states, Kentucky does not have a statute specifically designed for homeowners associations. But, most HOAs in the state are considered non-profit corporations. Therefore, in terms of corporate structure, procedure, and management, they are bound to the Kentucky Nonprofit Corporation Act.
You can find the Kentucky Nonprofit Corporation Act under Sections 273.161 through 273.390 of the Kentucky Revised Statutes. It consists of the following sections:
- Definitions.
- Applicability.
- Purposes.
- Repealed, 1968.
- General powers.
- Powers of Secretary of State.
- Defense of ultra vires.
- Corporate name.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 1968.
- Repealed, effective January 1, 1989.
- Registered office and registered agent.
- Repealed, effective January 1, 1989.
- Repealed, 2011.
- Repealed, 2011.
- Statement of change of principal office.
- Repealed, 2011.
- Members.
- Repealed, 1968.
- Bylaws.
- Meetings of members.
- Notice of members’ meetings.
- Repealed, 1968.
- Voting.
- Quorum.
- Board of directors.
- Repealed, 1968.
- Number and election of directors.
- Vacancies.
- General standards for directors.
- Quorum of directors.
- Conflict of interest transaction.
- Repealed, 1968.
- Committees.
- Place and notice of directors’ meetings.
- Officers.
- Authority of officers.
- Standards of conduct for officers.
- Repealed, 1968.
- Removal of officers.
- Books and records.
- Shares of stock and dividends prohibited.
- Repealed, 1968.
- Loans to directors and officers prohibited.
- Incorporators.
- Articles of incorporation.
- Articles of incorporation — Limitation of director liability.
- Repealed, 1968.
- Repealed, effective January 1,1989.
- Filing requirements.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Incorporation.
- Incorporation.
- Organization of corporation.
- Repealed, 1968.
- Right to amend articles of incorporation.
- Procedure to amend articles of incorporation.
- Articles of amendment.
- Repealed, 1968.
- Repealed, effective January 1, 1989.
- Restated articles of incorporation.
- Procedure for merger.
- Repealed, 1968.
- Procedure for consolidation.
- Approval of merger or consolidation.
- Articles of merger or consolidation.
- Repealed, 1968.
- Effect of merger or consolidation.
- Merger or consolidation of domestic and foreign corporations.
- Sale, lease, exchange, mortgage, or pledge of assets.
- Voluntary dissolution.
- Distribution of assets.
- Plan of distribution.
- Revocation of voluntary dissolution proceedings.
- Articles of dissolution.
- Repealed, effective January 1, 1989.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Permissibility of merger of subsequent reincorporation with reinstated prior corporation — Effect.
- Involuntary dissolution.
- Notification to Attorney General.
- Venue and process.
- Jurisdiction of court to liquidate assets and affairs of corporation.
- Procedure in liquidation of corporation by court.
- Qualifications of receivers.
- Filing of claims in liquidation proceedings.
- Discontinuance of liquidation proceedings.
- Decree of involuntary dissolution.
- Repealed, 2012.
- Deposits with State Treasurer.
- Survival of remedy after dissolution.
- Repealed, effective January 1, 1989.
- Application for certificate of authority.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Registered office and registered agent of foreign corporation.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, 2011.
- Repealed, effective January 1, 1989.
- Annual report.
- Filing and recording fees.
- Repealed, 2011.
- Greater voting requirements.
- Waiver of notice.
- Action by members or directors without a meeting.
- Unauthorized assumption of corporate powers.
- Conversion of Chapter 271B corporation to corporation governed by KRS 273.161 to 273.387.
- Repealed, effective January 1,1989.
- Application of act to corporations in existence on June 30, 1968.
- Title of law.
- Repealed, effective July 15, 1994.
- Definition — Internal Revenue Code — Acts prohibited — Policy of state regarding charitable trust — Liability of trustee — Powers of Attorney General.
- Fire department membership charges and subscriber fees may be added to property tax bills — Collection and distribution — Collection fee for sheriff.
- Community action agencies to be established.
Fair Housing
Similar to other states, Kentucky has its own state-level Fair Housing laws that work to protect people from housing discrimination. Under Kentucky HOA laws, housing providers, including HOAs, may not discriminate against people based on their sex, religion, race, color, national origin, disability, or familial status. It functions in the same way as the federal Fair Housing Act.
Housing discrimination victims can choose to file a private lawsuit. They may also report the act to the U.S. Department of Housing and Urban Development or the Kentucky Commission of Human Rights.
