Ohio Revised Code Section 5312
Ohio’s new Homeowner Association Law
Under current condominium law as a guide, the Ohio legislature has enacted Senate Bill 187, which is effective September 10, 2010. This law now labeled Ohio Revised code Chapter 5312, applies to every non-condominium “planned community” which is defined as:
“A community comprised of individual lots for which a deed, common plan, or Declaration requires any of the following: That the owners become members of an owners association that governs the community; that owners or the owners association hold or leases property or facilities for the benefit of the owners; that owners support by membership or fees, property or facilities for all owners to use.”
I will highlight a few areas of the chapter that affect our community directly.
5312.02-States that Bylaws MUST be created and recorded. These Bylaws define and describe the internal operation of an association. We have completed this and ours are recorded at the Lorain County Recorder.
5312.03-Mandates that the board be elected “from among the owners” and permits the election of “spouses” of owners to the board. It also states that the association shall be organized as a non-profit corporation. This is currently our procedure and we are considered non-profit.
5312.04-Mandates at least ONE meeting of the owners per year while also permitting board meeting attendance by speaker phone. IN ADDITION, it states that NO OWNER other than a director may attend or participate in any discussion or deliberation of a meeting of the board of directors unless the board expressly AUTHORIZES that owner to attend or participate. This section also permits remaining board members to fill vacancies on the board that arise outside of the annual election meeting. Our annual meetings will be conducted in August for general election. The board is in constant communication and has met more than 4x in the previous year.
5312.05 (B)-States that in order to dissolve a planned community there must be UNAMINOUS consent of the owners.
5312.12-States the association now has the clear authority to file a lien upon a lot for any unpaid assessment as well as any unpaid interest, late charges, enforcement assessments, and collection costs including attorney fees. This section also permits our law firm to have authority on our behalf to execute liens. Fro safety reasons, this designation is important so that the law firms name, not the name of the association’s president or another board member appears on the face of the lien.