Why State Law Matters for HOA Management
HOA management isn’t just about property maintenance and financial management — it’s a legally regulated activity. State statutes govern how assessments are collected, how meetings are conducted, how records are maintained, and how disputes are resolved.
A management company that doesn’t understand your state’s specific requirements is a liability, not an asset. When evaluating management companies, one of the most important screening questions is: “Are you familiar with your state’s governing statute?”
Below is an overview of how states approach HOA regulation.
Types of Governing Statutes
Most states have one or more of these types of HOA-related statutes:
Planned community / HOA acts
These govern homeowners associations in single-family and townhome communities. Examples: Illinois Common Interest Community Association Act (765 ILCS 160), Virginia Property Owners’ Association Act, Texas Property Code Chapter 209.
Condominium acts
Separate statutes governing condominium associations, which have different legal structures due to shared building ownership. Examples: Florida Condominium Act (Ch. 718), California Davis-Stirling Act, Colorado Common Interest Ownership Act.
Nonprofit corporation acts
Since most HOAs are structured as nonprofit corporations, state nonprofit corporation law provides a baseline for governance, meetings, voting, and director duties.
Your community may be subject to one or more of these statutes depending on its structure. Your management company and legal counsel should be able to identify which laws apply to your specific association.
Manager Licensing Requirements
States fall into three categories regarding community association manager licensing:
States requiring manager licensing
These states require community association managers to hold a state-issued license: Florida, Georgia, Nevada, California, Connecticut, Illinois, and several others. Licensing typically requires education coursework, an examination, continuing education, and sometimes background checks.
In these states, verify that your management company and assigned manager hold current licenses. License databases are typically searchable online through the state licensing authority.
States with voluntary certification
Many states don’t require licensing but recognize professional certifications like CMCA (Certified Manager of Community Associations), AMS (Association Management Specialist), and PCAM (Professional Community Association Manager) from the Community Associations Institute.
States with no licensing requirements
Some states have no licensing or certification requirements for community association managers. In these states, professional certifications and experience become even more important screening criteria.
Recent Legislative Trends
Several significant legislative changes are affecting HOA management nationwide:
Post-Surfside structural safety
Following the 2021 Champlain Towers South collapse in Surfside, Florida, Florida passed SB 4-D requiring structural integrity reserve studies and milestone inspections for condominiums three stories or higher. Other states are considering similar legislation.
Reserve funding requirements
Multiple states have strengthened reserve study requirements, limiting boards’ ability to waive or reduce reserve contributions. This trend protects homeowners from underfunded reserves but increases annual assessment obligations.
Transparency and homeowner rights
A general legislative trend toward greater transparency: electronic access to records, restrictions on closed board meetings, requirements for financial audits, and stronger protections against retaliatory enforcement.
Solar and EV charging rights
An increasing number of states are restricting HOAs’ ability to prohibit solar panels, EV charging stations, and other sustainability improvements, reflecting evolving environmental policy.
Key Takeaways
- Every state has different HOA governing statutes. What’s legal in Florida may be prohibited in California.
- Only about half of states require community association manager licensing. Check your state’s requirements.
- Post-Surfside legislation has dramatically changed condo requirements in Florida and is influencing legislation in other states.
- State law typically overrides HOA governing documents when they conflict.