Arkansas Condo Act vs HOA Act: Which Law Governs Your Community

Arkansas Condo Act vs HOA Act: Which Law Governs Your Community

Arkansas does not have a dedicated condominium act or a comprehensive homeowner association statute. Your community operates under the authority granted by your declaration of covenants, bylaws, and articles of incorporation, combined with Arkansas common law principles that govern property rights and contract enforcement. The Arkansas Attorney General's office has limited oversight of HOA disputes but can investigate fraud or consumer protection violations.

Because Arkansas has no state statute comparable to the Uniform Common Interest Ownership Act or the Model Real Estate Cooperative Act, determining which legal framework applies to your community requires you to examine your recorded governing documents. The absence of a state statute means your board has broad discretion but also fewer statutory protections when disputes arise.

How to Identify Your Community Type

Your first step is to locate your declaration of covenants, conditions, and restrictions. This document, recorded with the county recorder in the county where your property sits, defines whether your community is a condominium, a planned unit development, or a traditional subdivision with a voluntary HOA. If your declaration uses the word "condominium" and describes individual unit ownership with shared common elements, you operate as a condominium under Arkansas common law. If your declaration describes fee simple ownership of individual lots with shared amenities or common areas, you operate as a homeowner association.

The distinction matters because Arkansas courts apply different common law principles to condominiums and HOAs. Condominium unit owners hold undivided interests in common elements, which creates joint and several liability for maintenance and repair. HOA members typically own their lots outright and share only limited common facilities like roads, pools, or clubhouses. When a dispute reaches court, the judge will interpret your declaration under Arkansas contract law and property law precedents.

A concrete example: the Chenal Valley community in west Little Rock includes both single family homes governed by a homeowner association and attached townhomes governed by a condominium regime. The Chenal Valley HOA collects assessments for street maintenance, landscaping, and amenity upkeep across 4,500 homes. The adjacent Chenal Crest Condominiums operate under a separate declaration that assigns percentage interests in shared roofs, exterior walls, and driveways to each unit owner. The two communities sit within one mile of each other but follow different governance models because their recorded declarations define different ownership structures.

Arkansas Attorney General Authority

The Arkansas Attorney General's office does not have a dedicated HOA or condo division. However, the Consumer Protection Division can investigate complaints about fraud, misrepresentation, or deceptive practices by HOA boards or management companies. If your board engages in self dealing, fails to disclose financial records, or collects assessments for purposes not authorized by your declaration, a member can file a complaint with the Attorney General.

Arkansas courts have original jurisdiction over HOA and condo disputes. If your board refuses to enforce a covenant, imposes an improper assessment, or violates your bylaws, your remedy is a civil lawsuit in circuit court. Arkansas does not offer an administrative hearing process or a state ombudsman for HOA disputes. This means litigation costs can be high, and disputes often settle before trial.

What Your Declaration Controls

Your declaration defines your board's authority, the scope of assessments, amendment procedures, and member voting rights. Arkansas courts enforce declarations as contracts between the association and its members. If your declaration requires a 75 percent vote to amend covenants, the board cannot change that threshold without following the amendment process. If your declaration grants the board authority to impose special assessments up to $500 per unit without a vote, the board can exercise that authority unless the bylaws impose additional limits.

Review your declaration at least once per year. Check whether it includes any sunset clauses, automatic renewal provisions, or mandatory amendment deadlines. Some Arkansas declarations recorded in the 1980s and 1990s include 20 or 30 year renewal terms that require a vote to extend. If your declaration expires and you do not renew it, your covenants may become unenforceable.

Arkansas Property Law Principles That Apply

Arkansas courts apply the doctrine of equitable servitudes to enforce covenants that run with the land. If your declaration was properly recorded and provides notice to all subsequent buyers, the covenants bind current owners even if they did not personally sign the original document. However, Arkansas courts also apply the rule against perpetuities to certain covenants, and they may refuse to enforce covenants that are ambiguous, arbitrary, or contrary to public policy.

Arkansas follows the business judgment rule in disputes over board decisions. If your board makes a decision within its authority and exercises reasonable care, a court will not second guess the decision even if members disagree with it. The board must act in good faith, avoid conflicts of interest, and follow the procedures in your governing documents. If the board satisfies those requirements, the decision stands.

Practical Steps for Your Board

Pull a certified copy of your declaration from the county recorder's office. Confirm the legal description, the date of recording, and any amendments filed since the original declaration. Compare the declaration to your current bylaws and articles of incorporation. If you find inconsistencies, consult your attorney for your specific situation to determine which document controls.

Create a one page summary that lists your community type, the county where your declaration is recorded, the amendment threshold, the assessment limits, and the board election process. Share this summary with new board members and include it in your annual meeting packet. When members understand the source of the board's authority, disputes decrease.

Document every board decision in meeting minutes. Arkansas courts rely on written records when they interpret whether a board acted within its authority. If your board approves a special assessment, records the vote, the amount, the purpose, and the declaration section that grants authority. If your board denies an architectural request, records the date, the request details, and the specific guideline that supports the denial.

How Manorway Supports Arkansas Boards

Manorway's AI assisted platform helps you store governing documents, track amendments, and maintain meeting records in one place. You can upload your declaration, bylaws, and articles, and the platform creates a searchable reference library. When a member asks whether the board has authority to approve a fence variance, you can pull the relevant declaration section in seconds.

Manorway does not replace your attorney, but it helps you organize the documents and decisions your attorney will need if a dispute arises. You can record votes, attach supporting documents, and generate reports that show your board followed proper procedure. This audit trail protects your board when a member challenges a decision in court.

Next Steps

Schedule a board meeting to review your declaration and bylaws. Assign one board member to obtain certified copies of all recorded documents from the county recorder. Assign another member to create a compliance checklist that lists your community type, amendment procedures, and key deadlines. Share the checklist with your management company or your attorney and ask them to confirm accuracy.

If your declaration is silent on a key issue like special assessment limits or election procedures, consider drafting an amendment that clarifies the rule. Follow the amendment process in your current declaration and record the amendment with the county recorder once members approve it. A clear, updated declaration reduces disputes and gives your board confidence that its decisions will stand.

Consult your attorney for your specific situation before you rely on common law principles to fill gaps in your governing documents. Arkansas courts interpret declarations strictly, and an attorney can help you avoid unintended consequences when you draft new rules or amend existing covenants.