The 2026 Oregon HOA Compliance Guide

Why Oregon HOAs Are Different

Oregon’s Planned Community Act, ORS 94.550 to 94.783, contains detailed operational requirements for many homeowners associations — but applicability is not one-size-fits-all. Oregon classifies planned communities into three classes, and the statute applies differently to each.

Oregon’s three-class system

Condominiums are governed primarily by the separate Oregon Condominium Act in ORS Chapter 100. This guide focuses on planned-community HOAs.

Oregon HOA authority hierarchy

1. Applicable federal law.
2. The Oregon Planned Community Act (ORS 94.550–94.783).
3. Other Oregon statutes, including nonprofit-corporation law (ORS Chapter 65).
4. The recorded declaration and plat.
5. Articles of incorporation and bylaws.
6. Properly adopted rules, regulations, and resolutions.

1. Governing Documents and Board Duties

The declaration establishes the planned community and allocates important rights and obligations. The bylaws govern association administration, meetings, voting, budgets, assessments, insurance, maintenance, rules, and other operating procedures.

Under ORS 94.640, the board generally may act for the association subject to the declaration and bylaws. Directors and officers are governed by specified nonprofit-corporation fiduciary provisions whether or not the association is incorporated under ORS Chapter 65.

The board must:

• Review association insurance at least annually.
• Cause required association income-tax returns to be filed annually.
• Maintain a current association mailing address.
• Maintain information needed to provide owner account statements.
• Record each present director’s vote or conflict-based abstention in board-meeting minutes.

Directors may not vote by proxy or secret ballot at board meetings, except that officers may be elected by secret ballot.

Governing-document workflow

1. Maintain a complete set of recorded and current governing documents.
2. Identify the community’s statutory class and creation date.
3. Compare each proposed action with the declaration, bylaws, and applicable statutes.
4. Follow the required approval, certification, and recording procedures for amendments.
5. Distribute adopted rules, fee schedules, and fine schedules as required.
6. Preserve the final approved and recorded documents.

2. Open Board Meetings

ORS 94.644 generally requires all board meetings to be open for owner attendance. An owner does not automatically have a right to participate unless the governing documents or board provide one.

A board meeting means a convening of a quorum of directors at which association business is discussed. The board may not circumvent meeting and notice requirements through chance meetings, social gatherings, or other means.

Board-meeting notice

In a planned community where a majority of lots are occupants’ principal residences, notice of a nonemergency board meeting must be:

• Posted on the property at least three days before the meeting; or
• Provided through another method reasonably calculated to inform owners, including permitted electronic communication.

Electronic-meeting notices must explain the electronic means being used and how owners may attend.

Executive sessions

The board may close a meeting to consult legal counsel or consider:

• Personnel matters.
• Negotiation of third-party contracts.
• Collection of unpaid assessments.

Except in an emergency, the board must vote in an open meeting to enter executive session. The presiding officer must state the general nature of the matter and, as precisely as possible, when and under what circumstances deliberations may be disclosed. The statement and motion or decision to enter executive session must appear in the minutes.

A contract or action considered in executive session is not effective unless the board reconvenes in open meeting and votes to approve it.

Board-meeting workflow

1. Determine whether the gathering is a statutory board meeting requiring notice.
2. Provide required notice at least three days before a nonemergency meeting when the principal-residence rule applies.
3. Give owners a workable method to attend an electronic meeting.
4. Keep the meeting open except for authorized executive-session topics.
5. Enter executive session only by voting in open meeting and stating the reason on the record.
6. Reconvene and vote in open meeting on any contract or action considered in executive session.
7. Record each director’s vote or conflict-based abstention.

3. Owner Meetings, Voting, and Elections

An association must hold at least one owner meeting each calendar year.

Owner-meeting notice

Notice generally must be delivered or mailed not fewer than 10 days and not more than 50 days before the meeting. It must state:

• Date, time, and place.
• Agenda items.
• The general nature of proposed declaration or bylaw amendments.
• Budget changes.
• Proposals to remove directors or owner-elected officers.

Special-meeting business is limited to the purposes stated in the notice.

Calling a special meeting

The bylaws may set the percentage of owners required to call a special meeting, but the percentage may not be less than 10% or greater than 50%. If the bylaws are silent, written requests from at least 30% of owners require a special meeting.

If the association does not give notice within 30 days after receiving a valid owner request, a signing owner may set the meeting and provide notice.

Quorum, proxies, and electronic ballots

Unless the declaration or bylaws require more, the default owner-meeting quorum is 20% of the votes.

Voting may occur in person, through qualifying proxies, by absentee ballot at the board’s discretion, by written ballot instead of a meeting when permitted, or through another authorized method.

A proxy must be:

• Dated and signed.
• Valid for no more than one year after its date unless it states a shorter term.

The board may not require owners to use a board-prescribed proxy form.

Electronic ballots are permitted when governing documents do not prohibit them and the board establishes compliant procedures.

Written-ballot limits

Written ballots generally may not replace:

• A required turnover meeting.
• An annual meeting when more than a majority of lots are occupants’ principal residences.
• A meeting involving removal of a director.
• A special meeting called at owners’ request.

Election workflow

1. Confirm voter eligibility, allocated votes, quorum, nominations, and proxy rules.
2. Send complete notice within the 10-to-50-day window.
3. Use electronic, absentee, proxy, and written ballots only when authorized.
4. Apply required secrecy procedures when triggered.
5. Preserve proxies and ballots for the applicable statutory period.
6. Record results, challenges, and director removals in minutes.

4. Records and Financial Reporting

ORS 94.670 creates detailed financial and records duties. The association must retain association records within Oregon for at least the periods required by applicable law. Proxies and ballots generally must be retained for one year after the vote is determined; proxies and ballots involving a governing-document amendment must be retained for one year after the amendment becomes effective.

Annual financial statement

Within 90 days after the end of each fiscal year, the board must prepare a balance sheet and income-and-expense statement for the preceding year and distribute the annual financial statement to every owner and, upon written request, a mortgagee.

An association with annual assessments exceeding $75,000 generally must have the statement reviewed by an independent Oregon-licensed certified public accountant within 300 days after fiscal-year end. The owners may annually waive that review through the statutory 60% vote, excluding declarant votes.

Owner account statements

Within 10 business days after receiving an owner’s written request, the association generally must provide a written statement of:

• Unpaid regular and special assessments.
• Fines and other charges.
• Accrued interest.
• Late-payment charges.
• The applicable interest and late-charge rates.

An exception applies when filed litigation against the owner is pending when the statement would otherwise be due.

Document inspection and production

The association must make records reasonably available for examination and, after a good-faith written request for a proper purpose, duplication by owners and qualifying mortgagees. Specific confidential records may be withheld, including certain personnel, negotiating, privileged, executive-session, and individual-owner-file records.

The association must furnish requested governing documents, the latest financial statement, current operating budget, any reserve study, and architectural standards within 10 business days after an owner’s written request.

Records the HOA should organize

Records workflow

1. Date-stamp every written request.
2. Identify the requester, requested records, proper purpose, and deadline.
3. Preserve responsive records and identify lawful withholding grounds.
4. Produce required current documents within 10 business days.
5. Charge only reasonable fees adopted by board resolution.
6. Log what was produced, withheld, or unavailable.

5. Budgets, Reserves, and Maintenance Plans

Annual budget

Under ORS 94.645, the board must adopt a planned-community budget at least annually. The budget must include required reserve-account allocations. Within 30 days after adopting the annual budget, the board must provide all owners a budget summary.

If the board does not adopt a new budget, the last adopted annual budget continues.

Reserve account and study

When ORS 94.595 applies (generally Class I associations), the association must establish a reserve account for qualifying major maintenance, repair, and replacement obligations. Reserve items generally include:

• Association-maintained items expected to require major work in more than one and less than 30 years.
• Exterior painting of common painted surfaces.
• Other items required by the governing documents.

The board must annually determine reserve requirements by conducting a reserve study or reviewing and updating an existing study. The study must identify reserve items and include estimated remaining useful life and estimated maintenance, repair, or replacement cost.

The board must also prepare a maintenance plan for property the association is responsible for maintaining, repairing, or replacing, and update it as necessary.

Reserve funds generally may be used only for their established purposes and must be kept separate from other funds. After turnover, the board may borrow reserve money for high seasonal demands or unexpected expense increases if it adopts the required resolution and a written repayment plan by the next budget adoption.

Unless the board determines reserves will be adequately funded for the following year, the board or owners may not eliminate required reserve funding. After turnover, choosing not to fund reserves for the following year generally requires approval of all owners.

Financial calendar

• Adopt the annual budget and include required reserve allocations.
• Send owners a budget summary within 30 days after adoption.
• Review or update the reserve study annually when applicable.
• Review and update the maintenance plan as necessary.
• Prepare and distribute the annual financial statement within 90 days after fiscal-year end.
• Complete any required CPA review within 300 days after fiscal-year end.

6. Rules, Fines, and Enforcement

The association may adopt and amend rules and regulations subject to the declaration, bylaws, and statutory limits.

Under ORS 94.630, an association may levy reasonable fines for governing-document violations only after giving written notice and an opportunity to be heard. The fine must be based on:

• A schedule in the declaration or bylaws, or an amendment delivered or mailed to each lot; or
• An association or board resolution delivered or mailed to each lot.

The same section permits late charges and attorney fees related to assessment collection. Unless the declaration or bylaws provide otherwise, authorized fees, late charges, fines, and interest may be enforceable as assessments.

Defensible enforcement workflow

1. Confirm that the declaration, bylaws, or valid rule prohibits the conduct.
2. Confirm the association’s power and any statutory limit.
3. Investigate the facts and compare similar cases.
4. Send written notice describing the violation and proposed fine.
5. Provide a meaningful opportunity to be heard.
6. Make and document the decision.
7. Apply only a reasonable fine from a properly distributed schedule.
8. Track correction, payment, appeal, and collection separately.

7. Assessments, Liens, and Foreclosure

The board generally assesses common expenses against lots according to the declaration’s allocations. Past-due assessments bear interest at the rate established by board resolution.

An owner may not avoid common-expense liability by abandoning the lot, waiving use of common property, or offsetting an assessment based on the association’s alleged failure to perform.

Statutory lien

Under ORS 94.709, an association has a lien against a lot for unpaid assessments. The lien may include authorized interest, late charges, attorney fees, costs, and other recorded-governing-document amounts.

Recording the declaration provides record notice and perfection of the assessment lien. Before filing a foreclosure suit, however, the association must record a verified notice of claim of lien containing the statutorily required information.

The lien generally may remain in force for no more than six years from the date each assessment becomes due.

Foreclosure and collection

Oregon permits judicial foreclosure of a planned-community assessment lien. Foreclosure proceedings must conform as nearly as possible to the statutory construction-lien foreclosure procedure identified in ORS 94.709.

The association may also pursue a money judgment without foreclosing or waiving the lien. In assessment collection, lien foreclosure, and many governing-document enforcement actions, the prevailing party is entitled to reasonable attorney fees.

Electronic notice is not permitted for assessment default, lien foreclosure, or action the association may take against an owner. Use paper delivery.

Collection workflow

1. Confirm the charge is authorized and allocated correctly.
2. Reconcile the ledger and apply all credits and offsets.
3. Confirm that late charges, interest, fines, and fees were properly authorized.
4. Send default and enforcement notices by paper delivery only — not electronic.
5. Provide a requested owner account statement within 10 business days.
6. Have Oregon counsel prepare and verify any lien notice and foreclosure action.
7. Record releases and preserve the complete collection file.

8. Insurance and Association Funds

The board must review association insurance at least annually.

ORS 94.675 generally requires insurance for insurable common-property improvements against specified hazards and public-liability coverage for common property and association negligence. When required, property coverage must cover full replacement costs if reasonably available.

Class I and Class II associations subject to the statutory requirement generally must maintain fidelity-bond coverage for people with access to association funds, computer fraud, and funds-transfer fraud. After turnover, owners may annually approve reduced or no fidelity coverage for the following year under the statutory procedure.

All assessments, declarant subsidies, and other association funds must be deposited and maintained in the association’s name in separate federally insured accounts, subject to the limited authority to purchase United States government obligations. Association expenses must be paid from association accounts.

Financial-control checklist

• Keep every account in the association’s legal name.
• Separate reserve funds from operating funds.
• Require documented invoice approval and payment authority.
• Reconcile accounts monthly.
• Review bank access whenever directors, managers, or vendors change.
• Maintain required fidelity coverage.
• Review insurance and deductibles annually.

9. Solar, Landscaping, and Owner Protections

Solar panels

ORS 94.778 makes a declaration or bylaw prohibition against qualifying solar-panel installation void and unenforceable when the owner owns the roof or exterior portion involved. An association may still impose reasonable size, placement, or aesthetic requirements.

Irrigation and xeriscaping

Under ORS 94.779, irrigation requirements in governing documents or architectural guidelines become void and unenforceable during specified drought declarations, water-use restrictions, or an association irrigation-reduction rule.

The association may adopt rules reducing or eliminating irrigation, allowing or requiring xeriscape, requiring prior review, and applying best practices to minimize irrigation of common-property landscaping.

Other restriction limits

ORS 94.779 also limits certain restrictions involving:

• Qualifying family child-care uses.
• Portable cooling devices.

Boards should review the current statute before adopting or enforcing restrictions affecting these subjects.

Fire-hardened building materials (new 2026)

2026 Oregon legislation effective June 5, 2026 limits restrictions on qualifying fire-hardened building materials.

A planned-community governing document may not effectively prohibit replacing nonfire-hardened materials with fire-hardened materials or impose design, dimension, placement, maintenance, or appearance limits that practically prohibit all qualifying materials or create an unreasonable cost burden.

When an owner applies to install fire-hardened materials or remove nonfire-hardened materials, the application is deemed approved unless the association delivers a written denial or modification request within 90 days. The response must explain the basis and necessary modifications in reasonable detail and may not be arbitrary or capricious.

Electric vehicle charging

An association may not prohibit a compliant owner-installed electric vehicle charging station in a parking space, lot, or other area subject to the owner’s exclusive use. When the owner complies or agrees to comply with ORS 94.762, the association generally must approve a completed application within 60 days unless a reasonable request for additional information supports delay.

Pesticide notice and opt-out

Upon an owner’s request, the association must provide notice of planned pesticide-application dates and times on the owner’s property and explain how to opt out. The association generally may not require an owner to apply pesticides and must allow the owner to exclude the property from association pesticide application, except where pest management is necessary to protect ecological or public health.

An owner who opts out assumes the landscaping responsibility, and the association may enforce reasonable landscaping standards that allow consistent community appearances.

10. Turnover, Contracts, and Vendors

Oregon law contains detailed declarant-control and turnover procedures. At turnover, the association should receive and preserve governing documents, financial records, contracts, insurance information, owner and assessment records, plans, warranties, and other required materials.

Initial management, service, and employment contracts may be subject to statutory termination rights after turnover. Boards should review ORS 94.700 and the contract before assuming that a declarant-era agreement must continue.

Pre-litigation dispute resolution

Before starting litigation or an administrative proceeding in which the association and an owner are adversaries, the initiating party generally must offer to use an available qualifying county dispute-resolution program. The written offer must be hand-delivered or sent by certified mail, return receipt requested.

The requirement has exceptions, including:

• Circumstances involving irreparable harm.
• Proceedings to collect assessments other than assessments attributable to fines.

Counsel should verify compliance before filing.

Vendor checklist

• Confirm board authority and budget approval.
• Define scope, price, term, renewal, performance standards, and termination rights.
• Compare bids for material projects and document the selection.
• Review conflicts of interest and record recusals.
• Verify licensing, insurance, warranties, and permits.
• Require written change orders.
• Pay vendors only from association accounts.
• Preserve contracts, bids, invoices, and performance records.
• Obtain counsel review for management, construction, collection, and long-term contracts.

Oregon HOA Compliance Checklist

Governance and Meetings

• Identified the community’s class, creation date, and applicable statutes
• Maintained current governing documents and association mailing address
• Held at least one owner meeting during the calendar year
• Sent owner-meeting notice within the 10-to-50-day window
• Provided required nonemergency board-meeting notice (at least 3 days)
• Kept board meetings open except for authorized executive sessions
• Voted in open meeting before entering executive session
• Reconvened in open meeting and voted on all executive-session contracts or actions
• Recorded each director’s vote or conflict-based abstention

Financial and Records

• Adopted an annual budget with required reserve allocations
• Sent owners a budget summary within 30 days after adoption
• Prepared and distributed the annual financial statement within 90 days
• Completed or validly waived the CPA review (required at $75K+ in assessments)
• Responded to qualifying document and account requests within 10 business days
• Kept association funds in separate federally insured association accounts

Reserves and Insurance

• Maintained the required reserve account (Class I)
• Conducted or reviewed and updated the reserve study annually
• Maintained and updated the maintenance plan
• Used reserve funds only for authorized purposes
• Reviewed association insurance annually
• Maintained required fidelity coverage (Class I and Class II)

Enforcement and Collections

• Delivered or mailed the current fine and fee schedule to each lot
• Gave written notice and an opportunity to be heard before fines
• Reconciled owner ledgers before collection action
• Used paper (not electronic) delivery for default and enforcement notices
• Obtained counsel review before recording or foreclosing a lien

Operations

• Reviewed solar, irrigation, cooling-device, and child-care restrictions
• Tracked 90-day fire-hardening application window for all applications
• Followed EV charging application (60-day approval) and pesticide opt-out requirements
• Preserved turnover documents and warranties
• Reviewed vendor authority, conflicts, insurance, and contracts
• Offered qualifying dispute resolution before covered litigation

Frequently Asked Questions