Arkansas HOA Laws

Arkansas HOA laws depend on the community’s property type and legal organization. Recorded documents establish many subdivision requirements, while condominium regimes and incorporated associations must also follow applicable statutes.

Laws Governing HOAs in Arkansas

Subdivision HOAs and Property Owners Associations

Arkansas has no comprehensive planned-community HOA act. Subdivision associations generally rely on their recorded declarations and applicable corporate law.

• § 18-12-103: Restrictive Covenants: Requires properly executed and recorded instruments to establish effective property-use restrictions under this section.

Arkansas Horizontal Property Act

This Act governs condominium and other horizontal property regimes established through a recorded master deed. It does not automatically apply to every subdivision HOA.

• Chapter 18-13: Horizontal Property Act: Establishes the statutory framework for horizontal property ownership.
• § 18-13-102: Definitions: Defines units and common elements, including the meaning of a majority of co-owners.
• § 18-13-103: Establishment of Regimes: Requires a properly executed master deed recorded in each county containing part of the property.
• § 18-13-104: Master Deed: Establishes required deed contents and allocation of ownership interests.

Arkansas Nonprofit Corporation Laws

The applicable corporate law generally depends on the incorporation date and whether an older association elected into the newer Act.

• Chapter 4-33: Nonprofit Corporation Act of 1993: Governs covered nonprofit associations and their corporate procedures.
• § 4-33-1701: Applicability: Generally covers nonprofits incorporated on or after January 1, 1994. Earlier corporations may irrevocably elect coverage by amending their articles.
• §§ 4-28-201 et seq.: Older Nonprofit Corporation Act: Generally continues to govern older corporations that have not elected into the 1993 Act.

Recent Legislative Changes

• Act 516 of 2025: Horizontal Property Amendments: Updates condominium ownership and development provisions, with additional requirements for declarant funding and construction deposits.
• HB1660 of 2025: Proposed POA Oversight: Proposed audits for certain associations but died in committee. Its proposed requirements are not law.

HOA Governance and Board Responsibilities

Corporate provisions below apply to associations governed by the 1993 Act. Condominium regimes must also follow the Horizontal Property Act.

Board Qualifications and Duties

• § 4-33-801: Board Authority: Generally places corporate affairs under the board’s direction, subject to authorized allocations of power in the articles.
• § 4-33-802: Director Qualifications: Requires directors to be individuals and permits additional qualifications in the articles or bylaws.
• § 4-33-803: Board Size: Requires at least three directors.
• § 4-33-805: Director Terms: Establishes a default one-year term. Most elected terms cannot exceed six years or the corporation’s stated duration, whichever is shorter.
• § 4-33-830: Director Conduct: Requires good faith and prudent care in decisions reasonably believed to serve the corporation’s best interests.
• § 4-33-831: Conflicts of Interest: Establishes fairness and informed-approval standards for transactions involving an interested director.

Elections and Removal

• § 4-33-804: Director Selection: Generally provides for member elections while allowing other authorized selection methods in the articles or bylaws.
• § 4-33-808: Director Removal: Permits members to remove directors they elected, subject to voting protections and notice identifying removal as meeting business.

Developer Control

Arkansas does not establish one turnover deadline for every subdivision HOA. The governing documents determine applicable developer-control rights.

• § 18-13-104: Declarant Rights: Requires condominium master deeds to identify reserved development rights and applicable exercise periods.
• § 18-13-116: Declarant Funding: Establishes funding obligations during a specified control period. Its five-year reference is not a universal board-turnover deadline.

Member Meetings and Voting

• § 4-33-701: Annual Meetings: Requires corporations with members to hold an annual membership meeting.
• § 4-33-702: Special Meetings: Allows members holding at least 5% of voting power to demand a special meeting through signed written requests stating its purpose.
• § 4-33-705: Meeting Notices: Provides a 10–60-day notice standard, with a 30-day minimum for certain mail. Other fair and reasonable methods may qualify, except for designated actions.
• § 4-33-722: Member Quorum: Establishes a default 10% quorum unless another threshold applies. With less than one-third of voting power represented, annual or regular meeting votes are generally limited to noticed matters.
• § 18-13-108: Condominium Meetings: Requires bylaws addressing meetings and at least a 51% majority for decisions, read with the Act’s property-value-based majority definition.

Board Meetings

• § 4-33-822: Board Meeting Notices: Generally permits regular meetings without notice and requires two days’ notice to directors for special meetings, subject to statutory exceptions and governing documents.
• § 4-33-824: Board Quorum and Voting: Generally requires a majority of directors for a quorum and approval by a majority present unless another applicable requirement controls.

These provisions do not establish a general homeowner right to attend every board meeting. Governing documents may provide additional access.

HOA Financial Requirements

Subdivision assessment authority generally comes from recorded documents. The Horizontal Property Act adds specific condominium expense requirements.

Assessments and Budget Authority

• § 18-13-116: Common Expenses: Requires condominium owners to contribute according to the percentages established in the master deed.
• § 18-13-104: Expense Allocations: Allows a unit’s common-expense allocation to differ from its ownership interest in common elements.
• § 18-13-116: Rental-Related Assessments: Permits additional charges for units offered for rent, limited to reasonably calculated additional costs caused by that use.
• Act 516 of 2025, Section 8: Developer Contributions: Requires operational-shortfall funding or allocated expense payments during the specified declarant period. Separate assessment rules apply to units conveyed or used by the declarant.

Reserves and Assessment Increases

The reviewed statutes do not establish a universal reserve-study schedule or minimum reserve balance. Arkansas also has no statewide percentage cap on dues increases for every HOA. Governing-document approval requirements still apply to regular and special assessments.

Financial Records and Audits

• § 18-13-110: Condominium Accounting: Requires a chronological record of receipts and expenditures affecting the building and its administration.
• § 4-28-218: Older Nonprofit Accounting: Requires covered corporations to keep complete accounting records under accepted accounting principles.
• § 4-33-701: Annual Financial Reporting: Requires the president and chief financial officer to report on financial condition at the annual meeting.

These provisions do not impose an independent annual audit on every association. The governing documents may require one.

Late Charges and Collections

• § 18-13-116: Assessment Interest: Allows overdue condominium assessments to bear interest at a lawful rate established by the association.
• § 18-50-116: Statutory Foreclosure Limits: Restricts the statutory nonjudicial foreclosure process to qualifying mortgage holders. It does not grant ordinary HOAs an assessment-foreclosure power.

Late fees require a valid legal or documentary basis. The Horizontal Property Act does not provide a comprehensive automatic assessment-lien procedure; any lien or foreclosure action must rest on enforceable authority and follow applicable procedures.

HOA Rules and Enforcement

Boards must act within their governing-document authority. Arkansas does not give every association the same enforcement powers.

Governing Documents and Restrictions

• § 18-12-103: Covenant Amendments: Separates covenant-duration provisions from amendment requirements when the instrument states them separately.
• § 18-13-104: Master Deed Amendments: Requires the master deed to state its amendment method.
• § 18-13-109: Changes to Administration: Allows owners representing two-thirds of the building’s value to change condominium administration, subject to required bylaw contents and recording.

Architectural and property-use rules must follow the authority granted by the documents. A board rule cannot replace a required declaration amendment.

HOA Maintenance and Insurance

The declaration determines many maintenance duties. Condominium provisions should not be applied automatically to subdivision associations.

Maintenance Responsibilities

• § 18-13-102: Unit Boundaries and Common Elements: Establishes default classifications, subject to the master deed or plans. Exclusive use alone does not determine repair responsibility.
• § 18-13-108: Condominium Upkeep: Requires bylaws addressing maintenance of the building and its common elements.
• § 18-13-114: Common-Element Use: Keeps common elements undivided and protects owners’ lawful use without interference from other owners.

Insurance and Property Damage

• § 18-13-117: Condominium Insurance: Permits building insurance by majority resolution while preserving owners’ ability to insure their own units. It does not prescribe a universal coverage minimum.
• § 18-13-118: Insurance Proceeds: Generally directs proceeds toward reconstruction, with exceptions when reconstruction involves the whole or more than two-thirds of the building.
• § 18-13-119: Reconstruction Shortfalls: Allocates uninsured or underinsured rebuilding costs among affected owners, subject to the bylaws and statutory procedures.

Homeowner Rights and Protections

Records rights depend on the association’s legal structure. Other protections can limit otherwise authorized property restrictions.

Association Records

• § 18-13-110: Condominium Records: Allows co-owners to examine financial books and supporting vouchers during announced convenient hours on working days.
• § 4-28-218: Older Nonprofit Inspection Rights: Permits members to inspect records for a proper purpose at a reasonable time.
• § 4-33-720: Membership Lists: Provides meeting-related inspection rights beginning two business days after meeting notice, subject to copying and use restrictions.

The 1993 Act does not contain a general records-inspection section numbered § 4-33-1602. Additional access may arise from governing documents or other applicable law.

Fair Housing and Accommodations

• 42 U.S.C. § 3604: Fair Housing Act: Prohibits covered housing discrimination and requires qualifying disability accommodations and modifications.
• § 16-123-206: Discriminatory Covenants: Voids prohibited discriminatory occupancy restrictions, subject to the statute’s limited exception.
• § 16-123-314: Disability Protections: Requires qualifying reasonable accommodations and permits necessary reasonable modifications under specified conditions.

Flags and Antennas

• § 14-1-203: United States Flag Displays: Protects proper U.S. flag displays on private property where the person has the legal right to display the flag, subject to statutory exceptions.
• 47 C.F.R. § 1.4000: OTARD Rule: Limits restrictions on qualifying antennas in covered exclusive-use areas, subject to equipment and location requirements.

Solar Panels and Accessory Dwelling Units

No general Arkansas HOA solar-access override was identified in the statutes reviewed. Recorded restrictions and applicable permitting requirements remain relevant.

• § 14-56-205: Accessory Dwelling Units: Limits municipal ADU restrictions but expressly preserves private-party restrictive covenants. Municipal permission does not automatically override an HOA covenant.

HOA Disclosures and Property Transfers

Arkansas does not establish a universal HOA resale package with a delivery deadline and automatic cancellation period. Purchase contracts may provide additional protections.

Assessments and Transfer Fees

• § 18-13-116: Unpaid Condominium Assessments: Establishes sale-proceeds priority behind specified taxes and recorded mortgages. Buyers share liability with sellers for covered unpaid assessments through conveyance.
• § 18-12-107: Transfer-Fee Covenants: Prohibits covered transfer-fee covenants but excludes qualifying association charges used for authorized purposes without a required pass-through to a specified third party.

Buyers should obtain a written account statement before closing. The assessment statute does not set a universal response deadline.

Condominium Construction Deposits

• § 18-13-103: Use of Purchaser Deposits: Permits specified construction use after work begins when the contract contains the required conspicuous notice. Prohibited uses include advertising and agent compensation.

HOA Disputes and Complaints

Owners should check their governing documents for internal dispute procedures. Arkansas does not require mediation or arbitration for every HOA dispute or provide a general HOA ombudsperson.

Legal Remedies

• § 16-22-308: Attorney’s Fees: Allows discretionary prevailing-party fees in specified civil actions, including qualifying breach-of-contract cases.
• § 16-123-317: Fair Housing Complaints: Provides for state investigation of alleged discriminatory housing practices.

Relevant Agencies

• Arkansas Fair Housing Commission: Handles housing discrimination matters within its jurisdiction.
• HUD: Arkansas: Provides access to federal fair housing complaint resources.
• Arkansas Secretary of State: Maintains corporate filing information but does not decide ordinary covenant disputes.
• Arkansas Real Estate Commission: Accepts complaints involving matters within its real estate licensing authority.

Other Laws Affecting Arkansas Associations

Additional statutory requirements may apply to the association or its property.

Corporate Filings

• § 4-33-131: Annual Nonprofit Disclosures: Requires covered nonprofits, including those under the older Act, to file annual corporate information by August 1.

Condominium Taxation

• § 18-13-120: Separate Unit Taxation: Requires government assessments against individual units and protects a current-paying unit’s title from a tax sale of the property as a whole.

Broadband Partnerships

• § 18-13-108: Broadband Authority: Authorizes specified broadband partnerships and related financing for qualifying horizontal property regimes, using applicable bylaw approval procedures.

Frequently Asked Questions About Arkansas HOA Laws

Is HOA membership mandatory in Arkansas?

Generally, yes, when valid recorded documents require membership for the property. Owners cannot simply opt out of those obligations. Voluntary neighborhood associations are different.

Can an Arkansas HOA be dissolved?

Yes. Section 4-33-1402 establishes approval requirements for covered nonprofit corporations. Dissolving the corporation does not automatically terminate recorded covenants or maintenance obligations.

Does condominium termination require unanimous approval?

Section 18-13-107 requires all co-owners to agree to waive the regime. Units must be unencumbered, or affected secured creditors must accept the substituted security.

Does Arkansas require a separate HOA manager license?

No separate statewide HOA-manager license was identified. However, activities covered by Section 17-42-103 may require real estate licensing. The manager’s actual duties determine which requirements apply.