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

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

Kentucky has a Condominium Act codified in KRS Chapter 381 that applies to condominiums, but the state has no parallel statute for traditional homeowner associations. If you serve on a condo board, you follow the Condominium Act. If you serve on an HOA board that does not meet the statutory definition of a condominium, you rely on your governing documents, common law fiduciary principles, and the Kentucky Attorney General's consumer protection authority. Understanding which body of law governs your community determines your compliance obligations and the legal standards by which courts will judge your decisions.

The Kentucky Condominium Act

Kentucky's Condominium Act, found in KRS 381.805 through KRS 381.910, defines a condominium as a form of ownership in which individual units are owned separately and common areas are owned as tenants in common with other unit owners. The statute requires a declaration of condominium, bylaws, and a unit owner association. If your community meets this definition, you follow the Condominium Act.

The act specifies how your association must hold meetings, how you amend governing documents, how you collect assessments, and what your board must disclose to unit owners. For example, KRS 381.850 sets out the powers and duties of the unit owner association, including the power to adopt and amend bylaws, impose and collect assessments, and employ personnel. KRS 381.860 requires the association to keep detailed financial records and make them available for inspection by any unit owner.

Your board must follow these statutory requirements even if your bylaws say something different. When state law and your governing documents conflict, state law controls. If your bylaws impose additional restrictions or higher standards, you must follow both the statute and the bylaws.

What Governs HOAs in Kentucky

Kentucky has no comprehensive statute for traditional homeowner associations. If your community is not a condominium as defined by KRS Chapter 381, you are governed by your declaration of covenants, conditions, and restrictions, your articles of incorporation, and your bylaws. These documents create a private contract among property owners, and Kentucky courts enforce them under contract law principles.

Your HOA board owes fiduciary duties to the members under common law. Kentucky courts have held that HOA directors must act in good faith, exercise reasonable care, and avoid conflicts of interest. The Kentucky Attorney General's office has authority to investigate consumer complaints against HOAs, particularly when a board engages in deceptive practices or fails to provide required disclosures, but the office does not administer a dedicated HOA regulatory program.

Because Kentucky has no HOA statute, your governing documents carry more weight than they would in states with detailed HOA laws. If your covenants do not specify a rule or procedure, you may have no legal requirement to follow any particular process. However, courts expect your board to act reasonably and consistently with the purposes stated in your declaration.

How to Tell Which Law Applies

Read your declaration. If it uses the words "condominium," "unit," and "common elements," and if it references KRS Chapter 381, you are almost certainly governed by the Condominium Act. If your declaration refers to "lots," "homes," and "common areas" without invoking the condominium statute, you are likely a traditional HOA.

You can also check your county recorder's office. Condominiums must file a declaration of condominium that includes a description of the units and common elements. If your community filed such a declaration, you are a condo association. If your community filed only a plat and a set of covenants, you are an HOA.

A practical test is ownership structure. In a condo, you own the interior of your unit and a percentage interest in the common areas. In an HOA, you own your lot and home outright, and the association owns or holds easements over common areas. If you own real property that includes the land beneath your home, you are probably in an HOA, not a condo.

Louisville Example

The Springhurst neighborhood in eastern Louisville includes more than 500 single family homes built between 1995 and 2005. The original developer filed a declaration of covenants in 1994 that created a homeowner association with authority to impose annual assessments, enforce architectural guidelines, and maintain common areas. The declaration does not reference the Condominium Act, and each homeowner holds fee simple title to their lot.

In 2018, the Springhurst HOA board increased annual assessments by 40 percent without holding a member vote. Several homeowners filed a lawsuit challenging the increase. The Jefferson Circuit Court ruled that the board had authority to raise assessments under the declaration but that the board violated its fiduciary duty by failing to provide adequate notice and an opportunity for members to comment. The court did not apply the Condominium Act because the community was not a condominium. Instead, the court analyzed the case under contract law and common law fiduciary principles.

This case shows how Kentucky courts approach HOA disputes when no state statute applies. The board's authority flows from the governing documents, but the board must still act reasonably and in good faith. If you serve on an HOA board in Kentucky, you cannot rely on statutory safe harbors the way condo boards can. You must document your reasoning, provide notice to members, and be prepared to defend your decisions in court.

Practical Differences Between Condo and HOA Governance

If you govern a condo, you follow statutory procedures for calling meetings, amending bylaws, and collecting assessments. The Condominium Act provides a baseline set of rules that apply even if your documents are silent. If you govern an HOA, you follow only what your governing documents say. If your bylaws do not specify how to amend the declaration, you may need to petition a court for guidance.

Condo boards in Kentucky must prepare annual budgets and financial statements under KRS 381.860. HOA boards have no such statutory requirement, though your governing documents may impose similar duties. Condo boards can place liens on units for unpaid assessments under KRS 381.840. HOA boards can also place liens, but the process and priority are determined by your declaration and general Kentucky lien law, not by a specific HOA statute.

Condo unit owners have a statutory right to inspect association records under KRS 381.860. HOA members have a similar right only if your governing documents grant it. If your HOA bylaws are silent on record inspection, a member may have no legal right to review financial documents.

What You Should Do Now

Pull your declaration, articles of incorporation, and bylaws. Read the first three pages of your declaration to identify whether your community is a condominium under KRS Chapter 381 or a traditional HOA. If the declaration cites the Condominium Act, review KRS 381.805 through KRS 381.910 to confirm your statutory obligations. If the declaration does not cite the act, assume you are an HOA and rely on your governing documents as your primary legal authority.

Create a reference document that lists your board's powers, meeting requirements, assessment rules, and amendment procedures. Cite the specific section of your governing documents that grants each power. If you are a condo, note which powers come from statute and which come from your bylaws. This reference will help your board avoid overstepping its authority and will serve as evidence of due diligence if a member challenges a decision.

Consult your attorney for your specific situation. Kentucky law draws a bright line between condos and HOAs, and misapplying the wrong body of law can expose your board to liability. An attorney can review your documents and confirm which legal framework applies to your community.

How Manorway Helps You Stay Compliant

Manorway's AI assisted platform stores your governing documents, tracks compliance deadlines, and generates notices that match your legal requirements. When you upload your declaration and bylaws, Manorway identifies whether you are a condo or HOA and tailors its workflow tools to the legal framework that governs your community. You can set reminders for statutory deadlines if you are a condo board, or create custom deadlines based on your governing documents if you are an HOA board. The platform maintains a record of every board decision, every notice sent, and every vote taken, so you have an audit trail that protects your board in disputes.

Manorway does not replace your attorney, but it helps you organize the information your attorney needs to advise you effectively. When you know which law applies and you document your compliance, you reduce the risk of legal challenges and build trust with your members.