Unpacking Ohio’s Planned Communities Act: Why Your HOA Can’t Just Foreclose On A Whim
If you’re like a lot of Ohio homeowners, living in a community governed by a homeowner’s association comes with both benefits and frustrations. HOAs are generally designed to maintain common areas, enforce community standards, and protect property values. But when an HOA overreaches, particularly by threatening foreclosure, homeowners can sometimes feel powerless.
Ohio law sets important limits on what HOAs can and cannot do. The Ohio Planned Communities Act provides specific procedures that have to be followed before an HOA can take the drastic step of foreclosing on your home. Understanding these protections is the first step toward defending your house should an HOA threaten it. In this article, the Dayton, OH, HOA defense lawyers at Kohl & Cook Law Firm, LLC, will discuss how the Ohio Planned Communities Act can help you defend your home.
What is the Ohio Planned Communities Act?
The Planned Communities Act (Ohio Revised Code Chapter 5312) governs the operation of homeowner’s associations in Ohio. The rule applies to communities that were established after September 10, 2010. It influences many existing associations. The Act establishes uniform rules for how HOAs manage assessments, enforce covenants, and pursue remedies when a homeowner happens to fall behind on their dues.
When it comes to foreclosure, the Act makes it clear that an HOA cannot simply file a lien and seize your property without due process. Instead, strict procedures ensure fairness.
Procedural requirements for HOA foreclosures
Before initiating a foreclosure, HOAs are required to:
- Provide proper notice – Homeowners must receive written notice of any unpaid assessments plus a reasonable opportunity to cure the default. Surprise foreclosures are against the law.
- Follow governing documents – The HOA’s bylaws and declarations must authorize the foreclosure process. If the board acts outside of its governing rules, the action can be deemed invalid.
- File a valid lien – An HOA must perfect its lien in compliance with state law. That means that the lien must be recorded properly. Failure to do so can nullify the foreclosure.
- Act reasonably – The Act prohibits excessive or unreasonable fees that inflate a homeowner’s debt beyond what is fair.
Such requirements give homeowners powerful defenses if an HOA attempts to foreclose on a property without following the law.
Common HOA violations in Ohio
In our legal experiences, many HOA foreclosure cases collapse because the association made critical errors during the foreclosure process. These include:
- Improper or missing notices – Skipping formal notices or relying on vague language.
- Unreasonable late fees and costs – Charging hundreds or even thousands of dollars in penalties that are not authorized.
- Procedural shortcuts – Ignoring their own bylaws or state-mandated steps.
- Targeted enforcement – Selectively enforcing rules against certain homeowners.
When an HOA fails to comply with the Planned Communities Act, its foreclosure actions can be challenged and defeated.
Talk to a Columbus, OH, HOA Foreclosure Defense Lawyer Today
Kohl & Cook Law Firm, LLC, represents the interests of homeowners who are facing an HOA foreclosure. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
