Lawmakers Tackle Range of Issues in New HOA Legislation

Lawmakers Tackle Range of Issues in New HOA Legislation

As the number of Americans living in community associations continues to rise, states step in to address fees, conflict resolution, EV charging and more.

A townhome community in Loudoun County, Va., northwest of Washington, D.C. Many homebuyers appreciate the shared amenities, convenient services and built-in community that come with homeowner associations. (Gerville/Getty Images)

Common interest community associations-which include homeowner associations, condominiums and cooperatives-house over 1 in 3 Americans, or more than 78 million people, according to HOA Resources.

Described by the National Association of Realtors as mostly nonprofit governing boards that help maintain the common areas of shared living spaces, HOAs are found nationwide in numbers varying by state, according to Newsweek. HOA membership typically comes with monthly dues that cover routine maintenance and services as well as fees or special assessments covering additional services or as-needed repairs.

Many homebuyers appreciate the shared amenities, convenient services and built-in community that come with these associations. But there can be drawbacks, including high fees, conflicts with the governing board and/or other homeowners, or strict regulations. In a recent survey, 37% of respondents said they regretted buying into an HOA community, and 64% said their HOA causes some level of day-to-day stress, according to realtor.com.

Given the prevalence of community associations across the United States, state lawmakers consider bills in this area every legislative session. This year, states considered over 350 bills related to HOAs, and as of May, 13 states and Puerto Rico have passed at least 30 bills. The bills span areas such as fines and fees, governance and records, ombudsmen and electric vehicle charging.

Fines and Fees

In addition to regular dues, HOAs may charge fees for additional services or impose fines as penalties for membership violations. This year, multiple states changed the fees that associations are allowed to charge, mostly by prohibiting, restricting or clarifying the type and/or amount of fees.

• Indiana prohibited associations (HB 1152) from charging fees for statements of unpaid assessments and, in a second bill (HB 1115), clarified that such fees are allowed only in the resale or refinancing of property and may not exceed $50. The latter bill also prohibited an association from charging fees for services included in the association assessment, such as waste management, maintenance and landscaping of common areas.
• Minnesota (SB 1750) allowed associations to impose a fee for late payment of common expenses and special assessments but capped the amount at $20 or 5% of what's owed, whichever is greater. It also clarified that an association may impose a fine not to exceed $100 for a single violation of the declaration, bylaws, and rules and regulations, and that a fine greater than $100 may be imposed in certain circumstances such as a violation that has a serious and immediate impact on the health or safety of a resident.
• Mississippi proposed capping the fees HOAs and their management companies could charge for verifying paid assessments (SB 2644).

Governance and Records

HOAs can come with their share of challenges, and rules and governance often rank high when it comes to areas that create friction between associations and their members, according to realtor.com. This year, states considered a variety of bills on HOA governance and records, from addressing ethical issues such as favoritism and retaliation to detailing how records must be stored or made accessible.

• Arizona (HB 4011) specified that HOAs have a duty to act reasonably, including an obligation to exercise discretionary powers neutrally, fairly, without favoritism and in a nonarbitrary fashion.
• Connecticut (HB 5265) allowed HOA members, under certain conditions, to petition the Superior Court for an order directing the HOA to retain an independent third party to audit the association's financial records.
• Washington (HB 1501) required HOAs to respond within 30 days, unless certain exceptions are met, to written inquiries by a unit owner or the unit owner's authorized agent on topics related to association governance or operations.

Ombudsman Offices

The International Ombuds Association defines an ombudsman as a neutral, third-party adviser who can serve as an impartial resource to help compile educational resources and navigate conflict resolution for HOA boards and their members. As of 2025, seven states-Colorado, Delaware, Florida, Illinois, Minnesota, Nevada, South Carolina, Utah and Virginia-had created an office of community association ombudsman or an HOA information center. This year, states considered over 15 bills regarding HOA ombudsman offices.

• Utah amended its statute (SB 122) to require that the Office of the Homeowners' Association Ombudsman make public all advisory opinions the office issues.
• New Jersey is considering legislation (AB 4212) that would create an Office of the Ombudsman for Common Interest Communities within the Department of Community Affairs.
• New York is considering legislation (AB 10286 and SB 7745) that would establish the Cooperative and Condominium Ombudsperson Program to conduct outreach programs and facilitate dispute resolution.

EV Charging

Sustainability features such electric vehicle charging stations have become increasingly popular but are not without challenges. These include finding sufficient space in an area with limited parking or ensuring access to adequate charging infrastructure. For community associations, there can be added questions about whether the station is a shared resource and whether the station is allowed to be placed in a common area. This year, Maryland, Tennessee and Washington all enacted bills regarding condominiums and HOAs and EV charging stations.

• Maryland (HB 405) prohibited the governing documents of a condominium or homeowners association from unreasonably restricting the governing body of the association from installing or authorizing the installation of EV charging equipment.
• Maine (SB 457) made void and unenforceable any provision that places an unreasonable restriction on the installation or use of an EV charging station.
• Tennessee (HB 1875) limited associations' authority to prohibit owners from installing an EV charging station for their personal use, although an association may prohibit or reasonably restrict charging stations on a common element.
• Washington (SB 5129) last year prohibited associations from requiring approval for instillation of EV charging stations in associations of units that are not immediately adjacent, but the Legislature amended language confirming homeowner responsibility for charging stations regardless of governing document provisions.

In addition to the enacted legislation highlighted above, states considered bills across a range of categories, including annual and monthly meetings, HOA insurance, delinquencies and liens, dispute resolution processes, reserve accounts, tenant rights and owner rights in relation to flags, political signs, gardens and animals.

Olivia Parker is an intern in NCSL's Fiscal Affairs Program.