North Dakota HOA Laws & Regulations

Homeowners associations (HOAs) are steadily gaining traction across North Dakota. Whether you’re in a growing development near Fargo or a smaller planned community in Bismarck, you’re likely to encounter the rules and responsibilities that come with shared governance.

Understanding HOA laws isn’t optional—it’s essential. Whether you serve on the board or simply pay dues, state laws and your community’s governing documents shape everything from budgeting to maintenance to homeowner rights. Yet North Dakota doesn’t have a single, all-encompassing HOA statute like some other states, which makes it even more important to know where the legal boundaries lie.

This guide unpacks what applies to your HOA, what’s required under state law, and where the gray areas are. If you’re looking to stay compliant, avoid disputes, and build a stronger community, knowing these laws isn’t just helpful—it’s foundational.

What Laws Govern HOAs in North Dakota?

In North Dakota, HOAs are not governed by a single, comprehensive statute. Instead, multiple areas of state law apply depending on your community’s structure. That’s why it’s critical to understand where those rules live—and how they shape your responsibilities as a board or homeowner.

Which parts of the North Dakota Century Code apply to HOAs?

You won’t find a standalone “Homeowners Association Act” in North Dakota. However, several chapters of the North Dakota Century Code (NDCC) are directly relevant:

• Chapter 47-04.1 – Covers unit ownership (condominiums)
• Title 10 – Addresses nonprofit corporations, which is how most HOAs are organized
• Title 32 and Title 28 – Include provisions for civil actions and enforcement

You’ll often need to interpret these sections together. For example, Chapter 47-04.1 guides condo operations, but if your HOA is also a nonprofit, Title 10 dictates how you must handle meetings, elections, and finances.

What’s the difference between condo associations and planned communities?

In North Dakota, a condominium association is governed by the Unit Ownership Act, while a planned community typically relies on its CC&Rs and nonprofit statutes. The key distinction is ownership:

• Condo owners own individual units and share common areas as tenants-in-common
• Planned community owners hold individual lots but share common facilities, managed by the HOA

The laws vary accordingly—especially when it comes to declarations, maintenance duties, and voting rights.

How does nonprofit law fit into HOA governance?

Most HOAs in North Dakota are incorporated as nonprofit corporations, meaning they must comply with Title 10 of the Century Code. This includes:

• Filing articles of incorporation
• Adopting bylaws
• Holding regular board elections
• Maintaining financial records

Failing to comply with nonprofit obligations can leave your board exposed to legal risk—and possibly void decisions made outside of legal bounds.

Are HOAs in North Dakota Required to Register or Incorporate?

While not every HOA in North Dakota is formally incorporated, doing so offers clear advantages—and, in many cases, is expected for proper operation.

Do associations need to file with the Secretary of State?

If your HOA wants to function as a legal entity (e.g., sign contracts, open bank accounts, or apply for a loan), then yes—you must file articles of incorporation with the North Dakota Secretary of State. This registration grants the HOA legal standing.

You can search or file through the state’s Business Registration portal. Once registered, your HOA is subject to nonprofit corporation rules under NDCC Title 10.

What does incorporation under nonprofit law mean?

When your HOA is incorporated, it:

• Becomes a legal “person” under the law
• Must follow corporate procedures: meetings, minutes, officer elections
• Gains the power to sue or be sued
• Can enforce assessments or contracts more reliably

Incorporation strengthens your legal footing and ensures accountability.

Are there penalties for failing to register?

While there’s no direct “penalty,” unincorporated HOAs face legal uncertainty. You may struggle to enforce covenants, borrow money, or defend the board in court. In worst-case scenarios, individual board members could be held personally liable for actions taken on the HOA’s behalf.

What Must Be in an HOA’s Governing Documents?

Your HOA’s authority doesn’t come from thin air—it comes from its governing documents. These set the rules for how your community operates and are enforceable under North Dakota law.

What are CC&Rs and what do they cover?

Covenants, Conditions & Restrictions (CC&Rs) are the foundation of most HOAs. They:

• Define what homeowners can and cannot do
• Set rules around architecture, landscaping, and use of common areas
• Establish assessment rights and enforcement procedures
• Delegate powers to the board

In North Dakota, CC&Rs must be recorded with the county recorder to be enforceable. If they aren’t, your HOA could struggle to enforce fines, restrictions, or dues.

Why are bylaws and articles of incorporation essential?

While CC&Rs focus on what homeowners must follow, bylaws and articles of incorporation govern how your HOA is run. These should include:

• The number and roles of board members
• How meetings are held and votes conducted
• Procedures for adopting rules, setting budgets, or collecting dues

These documents are legally binding and required if your HOA is incorporated as a nonprofit.

Where must documents be recorded to be enforceable?

• CC&Rs: Must be filed with the county recorder
• Articles of Incorporation: Filed with the Secretary of State
• Bylaws: Generally maintained internally but should be available to members

Keep all documents updated and accessible. That transparency isn’t just good practice—it’s a legal safeguard.

How Are HOA Boards Elected and Regulated in North Dakota?

Your HOA’s leadership is only as strong as the process that puts it in place. North Dakota doesn’t have a standalone HOA governance law, but if your HOA is incorporated as a nonprofit, it must follow NDCC Title 10, which outlines board elections and oversight responsibilities.

What positions are required on the board?

At a minimum, North Dakota nonprofit HOAs are expected to have:

• President – leads meetings and represents the board
• Secretary – maintains records and meeting minutes
• Treasurer – oversees budgeting and financial reporting

Larger associations may appoint additional directors or committees, but these three roles are foundational.

How often must elections be held?

By default, board members serve one-year terms unless your bylaws specify otherwise. Elections must be held at least annually, typically during an official membership meeting with proper notice. Quorum and voting thresholds should be clearly outlined in your governing documents.

Can homeowners remove or replace board members?

Yes. Homeowners have the right to remove board members through a formal vote, usually requiring a majority of all homeowners or a specified percentage. The process must follow the procedures laid out in your bylaws, which may include:

• Petition thresholds
• Notice requirements
• Special meeting protocols

Having a clear removal process protects the integrity of the board—and the rights of the members.

What Are the Financial and Budgeting Rules for HOAs?

Sound finances are the backbone of a well-functioning HOA. In North Dakota, your responsibilities stem from both your bylaws and nonprofit statutes.

What is required in an annual HOA budget?

Each year, your board must prepare and adopt a budget that:

• Estimates operating expenses for the upcoming year
• Allocates funds for reserves and anticipated capital projects
• Determines assessment amounts per unit or lot

Budgets should be reviewed and adopted in an open meeting, with proper notice to all members. While the law doesn’t mandate a specific format, transparency and written documentation are key.

Are financial statements or audits mandatory?

There’s no automatic audit requirement in the NDCC, but best practices—and many bylaws—call for:

• Annual financial statements, including income and expenses
• Balance sheets and reserve fund breakdowns
• Independent audits or reviews, especially for larger HOAs or when major expenditures are planned

A lender or insurance provider may also require audits during loan or renewal reviews.

Can an HOA raise dues without a vote?

It depends on your governing documents. Most HOAs allow the board to raise assessments annually within a set limit (e.g., 10%). Increases beyond that threshold typically require:

• A vote by the membership
• Quorum requirements and written notice
• Clear justification (e.g., rising costs, capital improvements)

Review your CC&Rs or bylaws closely. If they’re silent or vague, follow nonprofit best practices and keep owners in the loop—especially when raising dues beyond the usual range.

Can an HOA in North Dakota Place a Lien or Foreclose on a Property?

When homeowners fall behind on dues, HOAs have the right to collect—but that right has limits. In North Dakota, lien and foreclosure authority is tied to your recorded CC&Rs and nonprofit standing.

When can a lien be placed for unpaid dues?

If your CC&Rs allow it, your HOA can automatically place a lien on a property when dues go unpaid. This lien secures the debt and gives your association legal leverage.

The lien typically covers:

• Unpaid assessments
• Late fees or interest (if outlined in your rules)
• Legal costs associated with collection

To enforce the lien, most associations record a formal notice with the county. Always verify that your CC&Rs permit lien enforcement before proceeding.

What is the foreclosure process (if applicable)?

North Dakota does allow judicial foreclosure, which means:

• The HOA must file a lawsuit in district court
• A judge must issue a ruling allowing foreclosure
• The property is then sold under court supervision

This process is more time-consuming and costly than non-judicial foreclosure (used in other states), which may deter small associations from pursuing it unless large sums are at stake.

What protections do homeowners have?

Homeowners aren’t without defenses. Common protections include:

• The right to dispute the debt before foreclosure
• The ability to cure the delinquency before the sale
• Limits on what fees can be charged (based on governing documents)

Also, courts typically scrutinize HOA foreclosures, especially if:

• Proper notice wasn’t given
• The lien amount seems excessive
• The board failed to follow procedures

The takeaway? Use liens cautiously, and always document every step.

What Are the Rules for HOA Meetings and Transparency?

Good governance starts with open communication. While North Dakota doesn’t have a dedicated open meetings statute for HOAs, nonprofit law and your governing documents often fill the gap. Transparency isn’t just ethical—it’s functional.

Do HOAs have to hold open meetings?

Unless your bylaws state otherwise, most board meetings should be open to members. Executive sessions may be closed when discussing:

• Legal matters
• Personnel issues
• Delinquent accounts

But routine topics—budgets, rules, projects—should be discussed where members can listen and observe.

What notice is required for meetings?

HOAs should provide advance written notice for all board and membership meetings. This can include:

• Email
• Mailed letters
• Physical postings in common areas

Best practices recommend at least 7–10 days’ notice, with the date, time, location, and agenda. Some bylaws require more.

Can homeowners attend and participate?

Generally, yes. Members have the right to:

• Attend board and annual meetings
• Speak during designated open forums
• Ask questions about agenda items

That said, the board can set reasonable time limits and procedures to keep meetings efficient. Encouraging participation improves trust—and often leads to better decision-making.

What Rights Do Homeowners Have Under North Dakota HOA Laws?

Homeowners don’t check their rights at the HOA gate. Even in a private community, you’re entitled to due process, fairness, and transparency. These rights are often spelled out in your bylaws, CC&Rs, and state law.

Do homeowners have a right to dispute enforcement?

Yes. If you’re accused of violating a rule, the HOA should:

• Notify you in writing
• Give you a chance to respond
• Offer a hearing before assessing fines or penalties

This isn’t just courtesy—it’s a basic protection. Denying a fair process can void enforcement actions in court.

What are the rights to view records?

Under North Dakota’s nonprofit laws, members have the right to inspect financial and corporate records, including:

• Budgets
• Meeting minutes
• Governing documents
• Financial statements

Requests must be reasonable and made in good faith. HOAs can charge a small fee for copies, but they can’t withhold access without cause.

Are there protections against discrimination or retaliation?

Absolutely. Your HOA must comply with federal and state anti-discrimination laws, including:

• The Fair Housing Act (race, religion, sex, disability, etc.)
• North Dakota Human Rights Act (adds protections like marital status)

Retaliation for complaints or legal challenges is also prohibited. If you believe your rights are violated, legal remedies may include fines, court orders, or damages.

How Are HOA Rules and Architectural Guidelines Enforced?

Rules are only useful if they’re enforced fairly. In North Dakota, HOAs must rely on their governing documents—not personal opinion—when issuing violations or fines.

What’s the legal process for issuing violations?

A board can only enforce rules that are:

• Clearly written in the CC&Rs or published guidelines
• Consistently enforced for all members
• Accompanied by due process

   

That process usually includes:

1. Written notice of the alleged violation
2. Time to correct the issue
3. An opportunity to request a hearing

Skipping these steps opens the door to legal challenges.

Are fines allowed, and how are they capped?

Fines are allowed—but only if expressly permitted in your governing documents. Without that authority, your HOA can’t impose them. Common fine structures include:

• $25–$100 for first violations
• Daily charges for ongoing noncompliance
• Caps or grace periods to avoid over-penalizing

Always stick to a published fine schedule, and avoid selectively enforcing rules.

Can rules be challenged in court?

Yes. If a rule is:

• Arbitrary
• Discriminatory
• Not properly adopted or recorded

—homeowners can challenge it in small claims or civil court. Courts generally uphold HOA rules if they’re reasonable and fairly applied, but they won’t tolerate abuse of power.

Are There State or Federal Laws HOAs Must Also Comply With?

HOAs don’t operate in a legal vacuum. Even with internal documents and nonprofit rules, state and federal laws still apply—especially when it comes to civil rights and liability.

How do the Fair Housing Act and ADA apply?

The Fair Housing Act (FHA) prohibits discrimination based on:

• Race, color, religion, sex
• National origin
• Familial status
• Disability

The Americans with Disabilities Act (ADA) also applies in certain cases—especially if your HOA manages public-facing facilities, like clubhouses or rental spaces. You may need to:

• Provide handicap-accessible entries
• Grant reasonable accommodation requests

Are there state-specific civil rights laws?

Yes. The North Dakota Human Rights Act reinforces federal protections and may go further in some areas (e.g., protecting marital status or lawful source of income). HOAs must ensure that rules don’t disproportionately affect protected groups.

What about insurance and risk requirements?

Many HOAs must maintain:

• General liability insurance
• Property insurance for common areas
• D&O insurance for board member protection

These may be required by lenders, insurers, or even your own bylaws. Not having proper coverage leaves your HOA vulnerable to lawsuits or uncovered losses.

What Happens If an HOA Violates the Law or Its Own Rules?

When an HOA oversteps its legal or contractual boundaries, consequences can follow quickly. Whether the violation is procedural, financial, or discriminatory, North Dakota law offers homeowners several tools for response.

Can homeowners sue the HOA or board members?

Yes. Homeowners can file a lawsuit against the HOA or individual board members if:

• Actions violate state law
• Rules are enforced inconsistently or unfairly
• Fiduciary duties are breached

Board members are generally protected if they act in good faith, but personal liability can arise from gross negligence or willful misconduct.

What are common remedies and penalties?

If a court finds the HOA at fault, it may order:

• Monetary damages
• Rule changes or reversal of decisions
• Attorney’s fees
• Board member removal (in extreme cases)

Mediation is often recommended before formal litigation, especially for disputes around enforcement or dues.

Is there a state department that oversees this?

North Dakota does not have a state agency solely dedicated to HOA oversight. Enforcement typically occurs through:

• Local courts
• The North Dakota Attorney General (for nonprofit abuses)
• Private legal action by homeowners

That makes self-governance and legal compliance even more critical.

How Do HOA Laws in North Dakota Compare to Other States?

Does North Dakota lack a unified HOA statute?

Yes. Unlike states such as Florida or California, North Dakota does not have a consolidated HOA Act. Instead, legal authority is scattered across:

• Condominium statutes
• Nonprofit corporate law
• Property and civil procedure laws

How does that impact regulation and enforcement?

The lack of centralized law means less state oversight and more reliance on governing documents. It also places more pressure on boards to interpret and apply rules correctly. Mistakes are more likely—and more costly—when legal guidance is unclear.

What should boards do to stay compliant?

• Work with HOA attorneys to interpret documents
• Follow nonprofit procedures for meetings, budgets, and records
• Maintain transparency and open communication
• Seek third-party reviews for finances or reserves

In short: don’t guess—document and verify.

Conclusion: Are You Following North Dakota HOA Laws Correctly?

The legal landscape for HOAs in North Dakota isn’t always obvious—but it matters. Without a centralized statute, your board’s actions must be guided by a combination of state law and your own governing documents.

Now is a good time to:

• Review your bylaws, CC&Rs, and articles of incorporation
• Evaluate how well your board is following nonprofit procedures
• Ensure financial practices meet basic standards of transparency and prudence

Legal and financial professionals can help close the gap between best intentions and best practices. Don’t wait for a legal challenge to audit your compliance.

Need help aligning your HOA’s financial strategy with legal requirements?
 Reach out to HOA Lending Services for expert support on funding options, board compliance, and planning your next capital improvement—without costly missteps.