Ohio’s Planned Community Law Goes into Effect September 10, 2010

Ohio’s new homeowners association act, known as the Planned Community Law (pdf), will go into effect on September 10, 2010.  The Planned Community Law provides homeowners associations with new tools to enforce rules and restrictions, collect assessments, and amend their governing documents.  Additionally, the Planned Community Law sets out new obligations for associations to comply with.  Over the next few weeks, I will be explaining the provisions of the new Planned Community Law in detail.

The first thing you need to know about the new law is whether it applies to your association.  In the Planned Community Law, the term “planned community” is defined as a community comprised of individual lots for which a deed, common plan, or declaration requires any of the following:

• That owners become members of an owners association that governs the community
• That owners or the owners association holds 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.  Although condominiums meet this definition, they are expressly excluded since condominiums are already covered by the Ohio Condominium Act.

So, if you live in an association where membership is required, or that provides recreational or other common facilities for members to use, (and it’s not a condominium), it probably falls under the new law and you will therefore want to be familiar with its requirements.  Next time, we’ll discuss what this new law requires to be included in an association’s declaration and by-laws.