
DC HOMEOWNERS ASSOCIATIONS AND CONDO BOARDS
Take a minute (or 30) to read about DC HOAs. Pretty straight forward until you scroll to the part about new construction. If you're buying a new condo or townhome in DC, this is crucial reading! You've been warned. Reach out if you have questions before buying a DC condo or townhouse!
What Is A Homeowners Association?
Home owners associations are typically structured as not-for-profit corporations. They are initially created by developers of residential housing communities prior to a sales offering for the purpose of controlling the appearance, management and budget of the community and this is their ongoing purpose after homeowners take control of the board.. The association not only provides services and manages the community, it also has the authority to enforce regulations, levy assessments and impose fines for infractions by property owners. HOA boards may also create subcommittees for such things as neighborhood watch, landscaping and architectural review, even social committees. Members pay dues and assessments and must follow the rules set forth in the association’s Covenants, Conditions and Restrictions (CC&Rs). The CC&Rs of the association are recorded at the time the property is subdivided and legally “run with the land” so that each subsequent owner of a property is bound to them as long as he or she is a property owner in the community. It’s important to review the CC&Rs of an home owners association prior to purchase in order to ensure that you can live with the rules, restrictions and penalties of the association.
Homeowners Association vs Condo Associations
Home owners associations and Condominium Associations differ in the following respects:
- Condominium members own their individual units and have joint ownership interest in common areas such as grounds, lobbies, recreational facilities, hallways, elevators and stairwells, etc. They also have joint ownership of Limited Common Elements such as parking spaces and some outdoor spaces such as balconies and decks allocated for the exclusive use of one or more, but fewer than all of the units.
- A co-op association owns the units, common areas and facilities of the property. Residents own a share in the co-op association and are allowed to occupy a unit, use amenities and vote for the Board of Directors.
- In a Homeowners Association, typically associated with fee simple properties such as detached and attached single family homes and townhouses, members own their individual structures and lots, and common areas are owned by the association itself (no joint ownership interest).
Association Finances
Property owners in a community governed by owners associations pay a share of common expenses. A home owners association operating fund is devoted to the operating expenses of the association and its reserve fund exists to cover common area assets maintenance, repair and replacement costs. If the reserve fund is well-funded, it will minimize the chance of special assessments being levied against property owners should a large common area repair or replacement, among other costs, become necessary. It’s important to review the budget, operating and reserve funds prior to purchasing a home controlled by a home owners association in order to ensure that the association is healthy.
Tips For Buyers On Homeowners Associations
- It’s your responsibility to review resale documents and new construction public offering packages;
- Make sure you understand how the association operates and review the responsibilities of homeowners;
- It is typically required by an association’s restrictive covenants (part of the deed restrictions) that you become a member of the HOA;
- Review the governing documents for the HOA within the rescission period specified in your contract. Pay strict attention to the CC&R’s (Covenants, Conditions, and Restrictions). They can contain provisions such as architectural restrictions, recreational vehicle parking restrictions, boat and water sport craft storage limitations, restrictions for commercial vehicles (even cars or vans with advertising displayed), pet restrictions, lawn maintenance requirements, and more;
- HOA operating expenses are typically collected evenly among owners. These assessments can be due on an annual, semi-annual, quarterly or monthly basis. If you don’t pay your assessments as required, you will likely incur late fees and possibly a lien by the association, even foreclosure in some cases. Review the documents carefully to learn exactly when and how the assessments are to be paid, and what remedies the association has if they’re not paid as agreed;
- Carefully review the financial health of the association. Ask for copies of all budgets, pending and/or recent assessments, reserves, legal actions (pending or recent), and any other financial documents such as annual income and expense statement and balance sheets. Sometimes HOAs are required to furnish these and as a potential homebuyer you have the right to request them for review. If you don’t understand these documents, ask an expert! It’s better to pay a small fee for clarification than to make an expensive mistake;
- The association’s Reserve Fund is an account for future capital improvements. Uses for this money can be private street maintenance, parking maintenance, repairs, replacement or maintenance for roofs and common building exteriors, clubhouses, pools, tennis courts, fitness centers, lakes, ponds, marinas, etc.;
- Special Assessments occur when associations don’t maintain on a regular basis, or when a major common element requires major repair or replacement and the Reserve Fund won’t cover it. Special Assessments get passed on to homeowners in addition to regular assessments. They can occur once, or be recurring. All owners are required to pay their share of a special assessment;
- Almost all associations incorporate architectural restrictions in their rules. Homeowners often have to submit written requests for approval of changes. These can include additions to the dwelling, remodeling, addition or changes to fences, outbuildings, garages, pools, playground equipment, and even extend to exterior finishes, windows and doors as well as their hardware, paint colors and mailboxes;
- Who manages the association? Associations can be managed by a developer, a contracted management company, or be self-managed;
- How are meetings conducted? Are homeowners welcome? Do homeowners and the board have good interaction, or are they at odds?
- Do homeowners have a voice? Talk to homeowners;
- How well does the board respond to homeowner issues and maintenance/repair requests? Are they professional in their interaction? Talk to homeowners.

Associations And New Construction Or Conversions
So you bought a new condo. One of the reasons you chose new construction over a resale was its ‘plug & play’ aspect–nothing to do once you’ve gone to settlement, right?
Um… no.
When the owner’s board takes over from the developer, a laundry list of vital decisions must be made within a fairly short period of time. If board members are unaware of this, much can be lost–at the expense of all owners, now and potentially for years or decades to come. Here’s our not short and fairly comprehensive list of considerations new boards must weigh.
The association has a board comprised of appointees and elected officers. At the inception of the home owners association, the project developer appoints members of the board and is in full control. When homeowners gradually join the board, the developer maintains a majority voting share by retaining the most seats through appointees. Once a pre-determined percentage of sales is reached, usually 70% to 75%, the homeowners association turns over to a board of owners, while the developer retains the majority vote until the project’s final sale. At this stage, the developer transfers full ownership of the association to the homeowners and no longer has legal or financial responsibility, except under the provisions of DC’s Code § 42-1903.16. Warranty against structural defects; limitation for conversion condominiums; exclusion or modification of warranty.
Code § 42-1903.16. Warranty against structural defects; limitation for conversion condominiums; exclusion or modification of warranty
Board members (and all owners) should familiarized themselves with the required warranty required of the developer in Code § 42-1903.16. and of the warranty provisions in their purchase contracts. DC law requires developers to file a performance bond or other security in the amount of 10% of the estimated cost of constructing the condominium, to be available to satisfy the developer’s warranty liability under the DC Condominium Act for a two-year period from the date of the first sale.
Developers can’t be exempted from this warranty by using “sold as is” language for any residential condo unit. For conversion condominiums sold “as is,” the warranty applies to any components installed, or work done by the developer unless a more extensive warranty is given by the developer in writing.
With relation to this warranty, there are several crucial steps to taking control of the board. Even if board members have no knowledge of development, real estate or the legal process, there is information available to help. Start by reviewing these online resources:
- Association boards should not delay in addressing building defects which would otherwise result in increased damage/deterioration, necessitating additional expense. A board should hire a qualified professional to evaluate the construction quality of the project while the enforcement period for any statutory or other rights is still in effect. This evaluation should be made by an engineer or architect or contractor with specialized training and experience in evaluating construction quality, and selected by the Board, not the developer.
There are many guides boards can follow to hold developers accountable for issues discovered in the inspections performed. Here are some tips and information that may prove valuable:
STRUCTURAL DEFECTS
In the “Survivor’s Guide To Construction Defect Resolution in the District of Columbia,” lawyers at Levin Law Group LLP explain that associations are not always aware of their rights when their projects are impacted by defective construction. Associations may not know how to remedy the defective conditions, and in particular, how to compel the project’s developer to address them. Steps are outlined.
This second article on “Structural Defects” focuses on the warranty against structural defects and explains how warranties work and how to make claims against the developer’s security to fund warranty repairs.
TRANSITION STUDIES AND LEGAL CLAIMS
In “Transition Studies & Legal Claims, A Guide for Washington DC Condominiums,” Nicholas Cowie of Cowie & Mott, P.A. explains how newly constructed and converted condominiums in DC often contain concealed or “latent” construction defects. Left undetected and unrepaired, defects in the construction of a condominium can cause extensive damage over time, requiring associations to assess their members substantial repair costs that could have been avoided by making timely developer warranty claims. The article provides a general overview of how Washington DC condominium associations transitioning from developer control can proactively and successfully identify defects and resolve construction defect claims with condominium developers and builders.
ASSOCIAITONS & OWNER'S RIGHTS
The purpose of this guide is to help association managers and boards understand the construction defect resolution process and how to take full advantage of the association’s legal rights. However, this book is not intended to constitute legal advice to the reader and should not be relied on as a substitute for consulting a lawyer licensed to practice law in the jurisdiction where the legal advice is sought.
Legal Representation
Association boards should not delay in addressing building defects which would otherwise result in increased damage/deterioration, necessitating additional expense.
A board should hire a qualified professional to evaluate the construction quality of the project while the enforcement period for any statutory or other rights is still in effect. This evaluation should be made by an engineer or architect or contractor with specialized training and experience in evaluating construction quality, and selected by the Board, not the developer.
Research
*It is highly recommended to retain legal counsel before taking any action
Disclaimer: Additional Amendments may be available. Check on dc.gov

DETAILS DETAILS
Reading all this may have a soporific effect, but isn't it better to be fully informed--though a bit bored--than face expensive consequences of ignorance later? Yeah, we agree, read on!
New Construction Or Conversion Warranties
From the “Survivor’s Guide to Construction Defect Resolution in the District of Columbia” by The Levin Law Group LLP:
- Express Warranties
- Statutory Warranties
- Condo Act Warranty
- Common Law Implied Warranties
- Negligence Liability
- Liability Under the Consumer Protection Procedures Act

Board Transition For New Construction Or Conversions
Don't nod off yet, this part's important too!
Transition is usually accomplished at a special meeting held for the purpose of electing homeowners to serve on the Board of Directors. Once the owners are in control, the real work begins! The only thing that ends at that meeting is the developer’s control over the functioning of the association not his responsibility to it, and probably not his involvement and interest in it. He may still be selling homes and may still retain seats on the Board. The newly elected owners now have a huge responsibility. They must insure that (1) the developer provides the association with any and all pertinent information; (2) the association reviews that information and questions the developer on any vague or ambiguous issues; and (3) the Board develops a strategic plan to go forward from that point. One of the first steps a new Board should take is an audit of the association’s financial situation. It is important for members of the Board, as well as all the owners, to satisfy themselves that while the developer was in control, all income and expenses were properly accounted for. That includes, but isn’t limited to, the financial obligation of the developer himself, if any, and aggressive pursuit of delinquent accounts. All association boards, but especially condominiums, should consider hiring a professional engineer to perform a comprehensive inspection of the property and its physical plant. This will serve two purposes: (1) it will determine if there are any warranty defects that may be the responsibility of the developer; and (2) it will serve as the basis for a repair and replacement reserve analysis. Such an analysis will estimate the useful life of a component, such as a building roof, the projected cost to replace it, and how much money needs to be set aside to ensure that special assessments are not necessary to maintain the association’s assets into the future. Good legal advice can also be important to the community. The association should retain independent counsel who is well versed in community association law, and who can ensure that the developer abides by his legal obligations and commitments. The following are examples of the types of documents an association should determine the existence and location of during the transition from developer to member control. This list is by no means exhaustive, but can serve as a checklist to guide you. Keep in mind that jurisdictional requirements may vary in terms of time frames for developer responsibility, and specific transition documents:
- Original (or certified copy) of all recorded documents for homeowner associations and condominiums
- Recorded copy of Declaration or Master Deed
- Articles of Incorporation
- Copies of filings
- Certificate of Good Standing
- Copies of annual reports filed
- Bylaws
- Recorded (condominiums)
- Non-recorded (homeowners associations
- Complete set of Board meeting minutes
- Duly adopted rules and resolutions
- Schedule of recordation dates
- All other files and records
- An accounting of association funds and financial statements, from the date the association is first entitled to receive funds through the date the developer/declarant control period ends.
- Any audits performed during the developer control period
- Current operating budget
- Copies of all past budgets
- Current statement of account balances, including that of developer
- Current accounts payable information
- Invoices both past/paid and outstanding
- Current reserve/replacement schedule
- Association bank accounts, checking accounts, certificates of deposit, etc.
- All association insurance policies
- Complete roster of unit owners and their addresses, as shown on the official records of the association
- Roster of mortgagees by unit, with addresses, to the extent that the association has such, and to the extent the information is available
- Any and all contracts in which the association is a contracting party.
- All association books or records held by or controlled by the developer.
Warranty And Physical Facilities Items
- Complete set of site plans and as-built drawings, including detailed measurements and dimensions.
- Any approved landscape plan
- Recreational facilities plan
- Storm and sewer system plans and diagrams
- Roads and parking areas
- Written warranties of the contractors, subcontractors, suppliers, and manufacturers, if any, involved in the construction and/or maintenance of the association’s facilities.
- List of manufacturers of products and specifications used in the maintenance, repair or replacements in or on common areas or common elements
- Copies of any bonds or letters of credit posted with any state or local agency
- Schedule of quantities of the following:
- Square footage of roof
- Square footage of all paved areas on the association property
- Square footage of lawn surface
- Square footage of exterior surface of each building
- Confirmation of compliance with the local authorities
- Completion bonds, either in place or already released
- Traffic and safety regulatory signage
- Fire code compliance
- Designation of roadways and site lighting, both public and private
Throughout the transition process described above, professional management can and should serve as advisor to the Board, custodian of the association’s books and records, and the entity to which the Board turns to assist in the development of long-term plans and goals to make sure that a community’s early due diligence translates into future continued success and financial stability for the owners.
Source: Developer-Homeowner Transition
Red flag
Is the developer also the building management company? Is the building attorney the developer’s attorney? The board may want to consider replacing both as soon as possible. Follow guidelines for building inspections prior to releasing the warranty bond. Get advice from experts on how to proceed.
New Construction Or Conversion Warranties
From the “Survivor’s Guide to Construction Defect Resolution in the District of Columbia” by The Levin Law Group LLP:
- Express Warranties
- Statutory Warranties
- Condo Act Warranty
- Common Law Implied Warranties
- Negligence Liability
- Liability Under the Consumer Protection Procedures Act

You made it!
You're ready to run the board!
Resources
- DCRA About Permits
- 2015 Pop-Up, Conversion Limits
- DC 2008 Construction Code Supplement
- DCRA Construction Codes List
- DCRA Construction Building Laws & Regs
- DC Construction Code Supplement 2013
- Condo Conversion 101
- Four Cracks In DC Housing Regulation
- § 42–1904.08. Conversion condominiums
- DC Condo Act
- DCRA Conversion & Sales
- DCRA About Permits
- PIVS
- New Zoning Code 2016
Listings, resource links and information quotation are not endorsements. Laws and codes change over time, Be sure to check for updates on official sites and seek the advice of qualified professionals for your situation. Nothing in this article should be taken as legal advice. We are Realtors, not attorneys, and may not provide legal advice.