Ohio Planned Community Act: The Basics

Governor Ted Strickland signed the Ohio Planned Community Act into law on June 10, 2010. The Act became effective on September 10, 2010, and will comprise Chapter 5312 of the Ohio Revised Code.

The Ohio Planned Community Act governs all community associations with the exception of condominium associations, which are governed by Chapter 5311 of the Ohio Revised Code.

The Act incorporates much needed regulations for many community associations. This is especially important with regard to collections in the advent of widespread foreclosures in Ohio. If a community association does not have the procedure already outlined in its Declaration or By-Laws, the Act provides for a specific method of payment application and provided for the recovery of court costs, collection costs, attorneys fees, and paralegal fees from a delinquent lot owner.

In addition, the Act sets out the proper procedures for enforcement assessments and the corresponding hearing opportunity for the lot owner. Many homeowners associations have governing documents that are either extremely vague or silent on this particular issue, so there will be no question of these procedures now that the Act has been signed into law.

If a section of the Act and your Declaration/Bylaws conflict, then your governing documents will control. If your governing documents are silent on a particular issue, then the Act will control the particular situation. If you live in any type of community association other than a condominium association, it is important that your board review these new laws so that is properly proceeds with association business.

For more a more detailed synopsis of the Ohio Planned Community Act, please visit our announcements page at www.ottesq.com.

For full text of the bill, please visit http://www.legislature.state.oh.us/bills.cfm?ID=128_SB_187

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