In New York, the purpose of a Homeowners Association (“HOA”) is to manage and maintain residential communities, including condominiums, cooperatives, and planned unit developments, where owners share ownership or responsibility for common areas.
Pursuant to the New York Real Property Law and the Condominium Act, these developments are governed by recorded declarations and governing documents that outline shared responsibilities and property use.
As far as the legal framework that governs HOAs, it is primarily set forth in a combination of statutes, including the New York Not-for-Profit Corporation Law, the Business Corporation Law, and the Real Property Law.
All of these laws provide the structure for the formation, powers, duties, and governance of HOAs, ensuring that residential communities operate in a lawful and equitable manner. Further, HOAs also serve as the administrative body responsible for enforcing the community’s Covenants, Conditions, and Restrictions (“CC&Rs”), by collecting assessments, maintaining common areas, and resolving disputes among members.
Under New York Real Property Law Section 339-m and related provisions, the HOA is generally obligated to maintain, repair, and replace common elements unless otherwise stated in the governing documents.
HOAs are typically formed as not-for-profit corporations under the New York Not-for-Profit Corporation Law. That law grants them corporate powers such as entering into contracts, adopting bylaws, and levying assessments to fund community operations and maintenance.
As far as leadership, the HOA board of directors are elected by the membership, and are tasked with fiduciary duties to act in the best interest of the association and its members, as outlined in Not-for-Profit Corporation Law Section 717. It is important to note that board members must act in good faith and with due care, and may be held liable for misconduct or breach of duty.
All in all, the purpose of an HOA in New York is to preserve property values, promote community welfare, and ensure compliance with governing documents through a structured legal framework.
However, HOA issues often can arise as a result of an HOA being present. In some cases, lawsuits against HOAs may even need to be filed, particularly when disputes over assessments, rule enforcement, or governance arise. In such cases, it is recommended to set up a legal consultation with a New York lawyer experienced in handling such matters.
What Are CC&Rs?
As noted above, CC&Rs stands for “Covenants, Conditions, and Restrictions,” which refer to the recorded rules and limitations that govern properties in a New York homeowners association or common interest community.
These provisions are formalized in a Declaration document filed with the appropriate county clerk or recorder and apply to all successive owners of the property. Under New York Real Property Law and relevant case law, CC&Rs are enforceable as binding covenants that run with the land and are presumed valid unless shown to be unreasonable or contrary to public policy.
Once again, their core function is to promote consistency and preserve property values within the community. CC&Rs often cover matters such as exterior home alterations, landscaping guidelines, noise regulations, and parking controls. By regulating these and other issues, CC&Rs help maintain a cohesive and orderly environment for all residents.
They may also outline responsibilities for upkeep, delineate which party, the homeowner or HOA, is responsible for certain areas, and prescribe procedures for resolving disputes, including penalties for non-compliance.
Unlike bylaws, which focus on the operational aspects of the HOA, such as board elections and meeting protocols, CC&Rs are primarily concerned with land use and homeowner obligations. As the highest ranking set of rules among HOA documents, they typically require membership approval to amend and must be re-recorded with the county clerk to take effect.
Once they have been properly recorded, they provide constructive notice to all parties involved. This means that homeowners are legally presumed to be aware of them. Should you have any questions about CC&Rs, it is recommended to meet with a New York lawyer experienced in CC&R laws.
Should I Buy a House With Covenants, Conditions, and Restrictions?
Buying a home subject to Covenants, Conditions, and Restrictions in New York can offer a well kept community and shared amenities. These recorded rules, which are enforced by a homeowners association, help preserve property values by setting clear standards for property use and appearance.
While CC&Rs can enhance neighborhood consistency, they may also restrict personal choices, such as renovations, pet rules, or short-term rentals. That’s why it’s important to review them closely before buying to ensure they suit your lifestyle. If they feel too restrictive, other housing options may offer more freedom.
What Are HOAs Allowed and Not Allowed To Do?
As mentioned above, in New York, homeowners associations are entrusted with broad oversight of planned residential communities, but their actions are constrained by legal boundaries. HOAs are governed by a combination of the New York Not-for-Profit Corporation Law, Real Property Law, and their own internal documents, such as CC&Rs, bylaws, and rules. HOAs must operate within these statutory mandates and their governing instruments.
Powers that are granted to HOAs in New York include:
- Enforcing community standards set forth in governing documents, including design guidelines and property upkeep
- Levying dues and issuing fines for violations or late payments, provided they are reasonable and authorized by the bylaws
- Handling repairs and maintenance for shared facilities and common infrastructure
- Regulating community elements like parking policies, landscaping, and exterior modifications
- Initiating foreclosure proceedings for unpaid assessments, subject to notice and due process under Real Property Law Section 339-aa
- Entering homeowner property for emergency repairs or maintenance of common elements, with prior notice unless otherwise stated in the governing documents
Restrictions that are placed on HOAs include:
- Engaging in any form of discrimination that violates civil rights laws, such as the Fair Housing Act or New York Human Rights Law
- Prohibiting the display of national flags, religious symbols, or personal signs, as long as they comply with reasonable size and placement rules
- Unreasonably restricting the installation of solar panels, satellite dishes, or electric vehicle chargers, which are protected under federal and state guidelines
- Imposing penalties or fees that are excessive or not authorized by the governing documents
- Violating homeowner privacy or entering homes without proper notice, except in emergencies
- Banning all short-term rentals outright, though HOAs may adopt reasonable regulations consistent with local zoning laws
Ultimately, HOAs in New York are required to observe both legal standards and principles of fairness. They must also comply with all applicable state and federal laws. It is important to review any HOA FAQs or governing documents, as they may address common concerns.
Can I Sue My Homeowners Association?
Homeowners in New York are legally entitled to file a lawsuit against their homeowners association if the association engages in misconduct or breaches its contractual or fiduciary responsibilities.
Under New York Real Property Law and the Not-for-Profit Corporation Law, residents may pursue legal action when the HOA fails to maintain common areas, mismanages funds, or enforces rules inconsistently. Violations of the community’s CC&Rs may also constitute a breach of contract and serve as grounds for litigation.
You may also need to sue your HOA in connection with foreclosure. As far as how to stop an HOA foreclosure in New York, the key is resolving the outstanding debt before the sale occurs. In general, this involves paying all overdue assessments, plus any applicable fees, interest, and legal costs.
You might also explore negotiating a settlement or entering a repayment agreement with the homeowners association. Another path to consider is initiating Alternative Dispute Resolution, such as mediation or arbitration, which is often encouraged before litigation.
Before heading to court, homeowners are expected to attempt resolution through steps like requesting records, attending internal hearings, or engaging in mediation. In many cases, New York courts favor dispute resolution efforts before allowing civil complaints to proceed.
If those efforts fail or the HOA refuses to participate, a homeowner may then proceed with legal action. They can do this either through small claims court for limited damages or through the New York Supreme Court for more complex cases involving substantial harm or ongoing violations.
Where Do I File a Complaint Against an HOA in New York?
If you need to file a complaint against a homeowners association in New York, you should begin by using the HOA’s internal dispute resolution procedures, which are typically outlined in the association’s governing documents. If that doesn’t resolve your issue, then you may pursue mediation, arbitration, or take legal action in small claims or Supreme Court, depending on the nature and complexity of the dispute.
For cases involving discrimination or harassment, you can file with the New York State Division of Human Rights or the United States Department of Housing and Urban Development. These agencies will investigate the matter and may take enforcement action on your behalf.
How Much Does It Cost To Sue Your HOA in New York?
In short, it depends on how you choose to proceed with handling your issues and the nature of your complaint. In New York, filing a small claims case is relatively affordable, typically costing between $10 and $20 in town or village courts, and up to $25 in city courts. Additional fees may apply for serving documents or mailing notices.
If your claim involves higher damages or complex legal issues, pursuing action in the New York Supreme Court with legal representation could involve significantly higher costs. Attorney fees may range from hundreds of dollars per hour, and you may also incur expenses for court filings, expert witnesses, and other litigation related services.
What Kind of Lawyer Do I Need To Sue My HOA in New York?
In order to sue your HOA in New York, you’ll typically need a New York real estate lawyer who understands both property law and the statutes that govern homeowners associations. This includes the Not-for-Profit Corporation Law and Real Property Law.
LegalMatch can assist you in locating an attorney who can help you navigate disputes involving CC&Rs, fiduciary duties, or improper enforcement of rules. An attorney will be able to advise you of your best course of legal action, and even file a private lawsuit on your behalf. They can also represent you in court, as needed.
