What is the Pennsylvania Uniform Planned Community Act?

Pennsylvania Uniform Planned Community Act explained

The Pennsylvania Uniform Planned Community Act (UPCA) governs most planned communities with more than 12 units. It outlines how these communities are formed, managed, and dissolved, creating a clear legal framework for how they operate. The UPCA defines what’s considered a shared responsibility and what belongs to individual owners, while setting expectations for both the association and its members. For boards, it provides structure around how decisions are made and how responsibilities are shared, helping support consistency and fairness in day-to-day operations.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Does the UPCA apply to my community?

The Pennsylvania Uniform Planned Community Act applies to most planned communities created on or after February 2, 1997 with more than 12 residential units. If your HOA was formed before then, check your declaration or other governing documents to see if your association chose to adopt the UPCA. Even for older communities, some parts of the law may still apply unless your documents clearly opt out. Because every association is different, it’s important to work with your community association manager and association attorney to review your governing documents and clarify what applies to your specific community.
 

What should HOAs know about the UPCA?

1. Governing framework and decision-making

   The UPCA outlines how an HOA must operate, including board powers, member voting, board meeting requirements, and election procedures. It clarifies the process for amending governing documents, like declarations and bylaws, and sets limits on actions taken without owner consent. These guidelines help boards make informed, legally compliant decisions and give homeowners clarity on when and how their voices are part of the process.
    

2. Financial management

   The UPCA outlines financial management responsibilities that help protect planned communities and the people who live in them. Boards are required to adopt an annual budget, collect assessments fairly, and maintain reserve funds for future repairs and improvements. The UPCA also explains how assessments should be collected and what steps boards can take if payments are missed, including filing liens or pursuing legal action when necessary. For communities that are still under development, the law requires financial protections like escrowed deposits or surety bonds to safeguard homeowners during construction.
    

3. Disclosures in resales

   When a unit is sold, the UPCA requires the seller to provide important community documents to the buyer. This includes the declaration, bylaws, rules, and a resale package that outlines key financial details like monthly dues, assessments, and any special charges owed. These disclosures help buyers understand what they are joining and give boards the chance to clarify expectations up front. The UPCA also includes penalties for missing or inaccurate disclosures, helping protect both buyers and the association from confusion or legal disputes down the road.
    

4. Amendment and termination rules

   Changing your community’s governing documents is a big decision, and the UPCA lays out exactly how that process should work. Depending on the type of change, your board may need approval from a certain percentage of homeowners or, in some cases, unanimous consent. If your community ever needs to dissolve, such as for redevelopment, the UPCA outlines how to handle that process as well, including how owners are notified, how votes are conducted, and how any remaining assets are distributed.
    

5. Enforcement and compliance

   The UPCA gives boards clear guidance on how to enforce covenants, rules, and bylaws in a fair and consistent way. That includes the ability to levy fines or suspend privileges when owners violate the rules, as long as those actions follow the standards laid out in your documents and the law. It also provides a framework for how disputes between owners and the association should be addressed. Learn more about unenforceable community rules.

UPCA vs Condominium Act

Scope and applicability

The UPCA and the Pennsylvania Condominium Act both set the rules for how community associations operate, but they apply to different types of communities. The UPCA covers most planned communities, typically single-family home developments or townhouse neighborhoods with shared spaces. The Condominium Act applies to condominium associations, where owners hold individual units inside a shared building. Both laws cover governance, finances, and shared areas, but one applies to horizontal property types and the other to stacked, vertical ownership.
 

Insurance responsibilities

Condominiums must carry a “walls-out” master policy that covers the structure of every unit, leaving owners to insure only personal contents and upgrades. Planned communities, by contrast, insure the common or controlled facilities and then require each homeowner to carry dwelling coverage on the house itself. Learn more about Pennsylvania insurance programs.
 

Size threshold for statutory coverage

Planned communities containing twelve or fewer units are largely exempt from the UPCA unless their declaration opts in, whereas the Condominium Act applies in full to every condominium regardless of size.
 

Treatment of common elements and shared expenses

While both acts require associations to maintain common areas and assess owners for shared costs, they define these terms differently. In a condominium, almost everything outside the individual units is a common element, from the hallways to the roof. Planned communities covered by the UPCA typically have more variation, with common elements often limited to roads, recreation areas, or shared utilities. This distinction affects budgeting, maintenance responsibilities, and how assessments are calculated across the community.
 

What happens if a community violates the UPCA?

If an HOA fails to comply with the UPCA, it may face legal action from homeowners or court orders requiring compliance. For example, not providing required resale disclosures could give a buyer the right to cancel a sale. Boards that ignore the UPCA’s rules on financial security or governance may also expose the association to lawsuits or financial losses. Proactively understanding and following the UPCA helps avoid these risks.
 

How we help your community navigate the UPCA

Managing a planned community in Pennsylvania means balancing your governing documents with evolving state laws and local regulations. FirstService Residential helps boards stay on track by providing the operational support, financial expertise, and industry knowledge to make sound decisions. From budget planning to meeting management and vendor oversight, our teams help boards focus on what matters most.

Contact us today to learn how we can support your board and your community.