Delaware HOA Laws: A Comprehensive Guide

Are you hoping to learn more about the state laws that govern homeowners associations (HOAs) in Delaware? If so, you're in the right place. Although it would be impossible for us to list all the applicable legislation, we have curated a list of the most pertinent to give you a good idea of which laws to read up on.

What Are Homeowners Associations?

Before we get into the relevant laws, let's first talk about what a homeowners association is.

These private entities are created by common interest communities for the betterment of the neighborhood and are responsible for the general upkeep of shared spaces and amenities, such as parks and swimming pools.

These community associations are regulated by federal, state, and local laws, in addition to their own governing documents, which generally consist of the following:

• Bylaws
• Declaration of Covenants, Conditions, and Restrictions (CC&R)
• Articles of Incorporation

Delaware HOA Laws That You Need to Know About

Now that you understand what a community association is and what it does, it's time to move on to the laws that govern these entities.

The Delaware Unit Property Act

This act, which can be found in Chapter 22 of Title 25 of the Delaware Code, controls the establishment, administration, authority, and functioning of communities founded before the 30th of September 2009, which opt-in to the legislation by making a declaration.

Keep in mind that some associations may be subject to the Delaware Uniform Common Interest Community Act instead.

The Delaware Uniform Common Interest Community Act

Unless expressly exempted, the Delaware Uniform Common Interest Ownership Act, found in Chapter 81 of Title 25 of the Delaware Code, covers all shared-interest communities that were established after the 30th of September 2009.

Remember that some common interest communities established prior to this date may be subject to the relevant parts of this chapter solely for circumstances and events that took place after the 30th of September 2009.

The Delaware Fair Housing Act

The Delaware Fair Housing Act is designed to protect residents from discrimination on the basis of marital status, race, gender identity, sex, color, creed, sexual orientation, national origin, disability, familial status, religion, source of income, or age.

Like the federal Fair Housing Act that provides protection at a federal level, this act also protects individuals against housing discrimination. However, it offers state-level protections and is enforced by the Delaware Division of Human Relations.

This agency accepts complaints from victims of housing discrimination and will take action against offenders. Therefore, it is important for managers and board members to have a good understanding of the applicable laws and do their best to remain compliant. They should also know how to handle complaints and disputes.

Delaware Uniform Unincorporated Nonprofit Association Act

This law regulates homeowners and condominium associations in terms of corporate structure and practices. The Delaware Uniform Unincorporated Nonprofit Association Act governs nonprofit organizations, which is what the majority of Delaware HOAs are.

Restrictions on Fee Collections

According to this state law, fees for a facility that has not yet been finished and is not available for use by homeowners in a housing development are prohibited. The Delaware Attorney General has the power to punish an HOA that does not comply with this law as a consumer law violation.

Fines and Foreclosures

If a resident falls behind in the payment of assessments, an HOA can place liens on their real estate as well as interest of up to 18 percent of the yearly fees. In extreme circumstances, the board of directors can force the sale of property, and the revenue will be used to pay the overdue balance.

Alternatively, the HOA can buy the home and lease or resell it, provided it receives a majority vote from the other members. 

About DoorLoop's HOA Management Tools

If you are having trouble managing your day-to-day activities as a manager, board member, or executive of a homeowners association in Delaware, then we are here to help! DoorLoop has intuitive tools that are specially designed to meet your needs.

Whether you are on the go or in the office, you can store and access important information and ensure that you are preparing financial statements and budgets in accordance with state, federal, and local laws.

In addition, our HOA management software also allows you to communicate with residents and vendors so that you can manage work orders effectively and ensure that notice requirements are met.

Get in touch with us today to learn more about our software, or try it out for yourself with a free demo.

Final Thoughts

When it comes to managing a homeowners association in Delaware, understanding state laws is important. However, it doesn't just stop there. You will also need to ensure that your HOA complies with these laws.

To help you do just that, we have designed HOA management software that will streamline your workflow by automating mundane activities and ensuring that you have access to all you need on one easy-to-use platform.

Schedule your free demo today to test our HOA management tools out for yourself!

Frequently Asked Questions

1. Which government agencies should I know about?

Homeowner associations must know about the applicable government agencies. Here are a few to take note of:

• Delaware Attorney General - protects the rights of citizens.
• Delaware Real Estate Commission - oversees the conduct of real estate brokers and issues licenses.
• Delaware State Housing Authority - housing finance agency.

2. What does a homeowners association do?

HOAs are responsible for the maintenance of common areas and shared amenities. They also enforce rules and regulations to maintain property values and ensure uniformity throughout the community and have the responsibility to prepare financial statements and schedule regular meetings with residents.

3. How can I learn more about the relevant legislation?

We recommend obtaining legal counsel to ensure that your HOA complies with the relevant laws. Unit owners can take legal action against a homeowners association that does not comply with legislation, so be sure to do your research. You can use the links listed below in our resources section to learn more.

4. Does Delaware have its own flag laws?

Yes. The Delaware Display of Flags Law offers residents the freedom to display the US national flag, provided it is done in accordance with this law.