Wednesday April 30, 2025
What are Delaware HOA laws?
There are several state and federal statutes that govern how homeowners associations (HOAs) are created, operated, and regulated in Delaware. These may include the Delaware Uniform Common Interest Ownership Act (DUCIOA), the Delaware Nonprofit Corporation Act, and applicable federal laws like the Fair Housing Act.
- Delaware Uniform Common Interest Ownership Act (DUCIOA): DUCIOA regulates everything from the formation of new associations to budgeting, assessments, and resale disclosures. It generally applies to HOAs created on or after September 30, 2009, and offers an optional framework for pre-existing communities. Older communities may "opt in" to DUCIOA by amending their governing documents.
- Delaware Nonprofit Corporation Act: If the HOA is structured as a nonprofit, it must also comply with the Delaware Nonprofit Corporation Act. It covers governance matters such as election procedures, board responsibilities, member rights, and how records should be maintained.
- Federal and state anti-discrimination laws: Federal laws like the Fair Housing Act apply to HOAs nationwide, including in Delaware. Locally, the Delaware Fair Housing Act and the Equal Accommodations Law reinforce these protections at the state level. This includes requirements for reasonable accommodations, non-discriminatory rules, and inclusive access to shared facilities.
Understanding Delaware HOA rules and regulations
HOA rules and regulations in Delaware are typically derived from a community's governing documents, such as Covenants, Conditions, and Restrictions (CC&Rs), bylaws, rules and regulations, and articles of incorporation. These documents are legally binding and detail how the community is to be maintained, how rules are created and amended, and what rights and responsibilities homeowners and board members have.DUCIOA requires associations to be transparent about their governance. That includes holding open meetings (with limited executive session exceptions), providing financial disclosures to homeowners, and giving notice before changes to rules or assessments are made. It also lays out how elections should be run and how boards must maintain records.
Rules established by Delaware HOAs often address topics like:
- The appearance and modification of units
- Use of common areas and amenities
- Noise and nuisance policies
- Parking and vehicle restrictions
- Pet rules and short-term rental policies
Fees, insurance, and DUCIOA resale certificates
Delaware HOA laws generally allow associations to collect fees and assessments to fund common area maintenance, insurance, and services. These charges must be reasonable and in line with the services being offered. Boards must follow their governing documents when setting or changing fees, and DUCIOA requires that detailed budgets be made available to members.HOAs are also required to maintain insurance for the community’s shared elements. This can include liability coverage, property insurance for common structures, and directors and officers (D&O) insurance for board members.
When a unit is sold in a community governed by DUCIOA, the seller must provide the buyer with a Delaware resale certificate. This certificate may include information about the HOA’s current budget, reserves, upcoming special assessments, community rules, pending litigation involving the HOA, and insurance information.
The goal is to provide transparency to the buyer before they commit to purchasing a home governed by an HOA. The resale certificate must be prepared and delivered according to a strict timeline and in compliance with DUCIOA requirements. Typically, the association has 10 calendar days after receiving the owner’s written request to provide the certificate.
How Delaware HOAs enforce rules
Delaware HOA laws allow associations to enforce community rules through a structured process. Boards are expected to act reasonably and consistently, using their governing documents as the roadmap. If a homeowner is found in violation of a rule, the board may issue a written notice describing the issue, the specific rule involved, and any deadlines for correcting the problem. In many cases, the homeowner will have the opportunity to present their side to the board.Some associations assess fines for ongoing or serious rule violations. These fines must be reasonable, related to the violation, and in line with the HOA’s authority as defined in the CC&Rs. Where applicable, if the association uses a hearing process or appeals procedure, homeowners must be informed of their rights.
Design review is also part of rule enforcement in many HOAs. Before making modifications to the exterior of their property, homeowners may need to get approval from a design or architectural review committee. This can help preserve the appearance and consistency of the neighborhood, provided that the review criteria are objective and fairly applied.
Staying compliant with Delaware HOA laws in 2025
To stay compliant with Delaware HOA laws in 2025, associations should maintain up-to-date knowledge of relevant statutes, adjust their practices accordingly, and regularly review their governing documents.For example, any changes to DUCIOA or federal housing guidelines should trigger a review of current policies. Boards should also keep records of compliance deadlines, such as annual meetings, budget distributions, and resale certificate preparation.
Working with legal counsel and a property management company familiar with Delaware’s regulatory landscape is strongly recommended. These professionals can assist with:
- Monitoring legislative changes
- Drafting compliant rules and communications
- Maintaining transparent governance practices
- Helping residents understand their rights and responsibilities
Contact FirstService Residential today to learn how we can support your board with local expertise and a service-first approach.