Delaware HOA Law Changes 2021–2025: What Every Board Needs to Know

<h2>Overview of Delaware HOA Law Changes 2021–2025</h2>

<p>Delaware community associations are governed by the Delaware Unit Property Act (25 Del. C. § 2201) and, since 2021, the Delaware Common Interest Community Ownership Act (CICOA). Between 2021 and 2024, Delaware enacted significant updates — including a comprehensive new governance framework, electronic notice authority, reserve fund minimums, and solar and EV charging protections. Here's a session-by-session breakdown.</p>

<h2>2021 Legislative Session</h2>

<h3>HB 147 / SS 1 — Common Interest Community Ownership Act Enacted</h3>

<p>Delaware enacted the Delaware Common Interest Community Ownership Act (CICOA), modeled on the Uniform Common Interest Ownership Act, to provide a comprehensive statutory framework for planned communities, condominiums, and cooperatives. Before CICOA, Delaware's HOA governance was largely driven by governing documents and general contract principles, with limited statutory structure. CICOA established uniform requirements for meeting notices, quorum standards, member rights to inspect financial records, developer disclosure obligations, and resale disclosure packages. All existing Delaware common interest communities — not just newly formed ones — are subject to CICOA's provisions. Boards of associations formed before 2021 should conduct a governing document compliance review against CICOA's requirements.</p>

<h2>2022 Legislative Session</h2>

<h3>SB 245 — Electronic Notice and Meeting Authority</h3>

<p>SB 245 amended CICOA to clarify that associations may deliver all required notices electronically to members who have consented in writing to electronic delivery. Electronic consent is revocable at any time — members who withdraw consent must revert to receiving paper notices. Meetings may be conducted by electronic means when in-person gathering is impractical, subject to a board resolution and prior notice to all members that includes electronic access instructions. This amendment provides Delaware associations with a clear statutory basis for electronic governance that was not available before 2022. Boards should collect written electronic consent forms from members and update their notice procedures accordingly.</p>

<h3>HB 367 — Reserve Fund Minimum Contribution</h3>

<p>HB 367 established a statutory minimum reserve contribution of 10% of the operating budget for Delaware common interest communities, unless the association has conducted a reserve study within the past 3 years demonstrating a different funding level is appropriate. Reserve fund accounts must be maintained in an account separate from the operating account — commingling of reserve and operating funds violates this provision. Associations whose current reserve contributions fall below 10% of the operating budget should either commission a reserve study justifying the lower contribution or increase contributions to meet the statutory minimum. Boards should document the basis for their reserve funding level in board meeting minutes.</p>

<h2>2024 Legislative Session</h2>

<h3>HB 443 — Solar Panel and EV Charging Rights</h3>

<p>HB 443 prohibited Delaware common interest communities from adopting or enforcing restrictions that prohibit solar panel installation or EV charging station installation on a member's property or in a member's designated parking space. Associations may impose reasonable aesthetic standards — including framing requirements, panel color, and cable management specifications — and may require prior written approval. However, associations may not deny approval based solely on visibility from the street or road. Any existing CC&amp;R provision that amounts to an outright prohibition on solar panels or EV charging equipment is void under Delaware law. Boards should audit governing documents and repeal or amend any non-compliant provisions promptly.</p>

<h3>SB 339 — Assessment Collections — Cure Period</h3>

<p>SB 339 required Delaware common interest community associations to provide a 30-day cure notice by first class mail and certified mail before initiating any lien enforcement or foreclosure action for unpaid assessments. The notice must itemize all amounts owed — principal assessments, late fees, interest, and any collection costs accrued to date — and must include information about the member's right to dispute the delinquency. Attorney fees may not be added to the delinquency during the cure period. After the cure period expires without payment, the association may proceed with lien recording and, if necessary, foreclosure. Boards whose management agreements skip the certified mail cure notice step must update those agreements immediately.</p>

<h2>Board Action Checklist</h2>

<ul>

<li>Conduct a CICOA governing document compliance review — ensure your CC&amp;Rs and bylaws comply with the 2021 Act</li>

<li>Collect written electronic consent forms from members to enable electronic notice delivery</li>

<li>Maintain reserve funds in a separate account — document the funding basis in board minutes</li>

<li>Verify reserve contributions meet the 10% minimum or commission a reserve study supporting a different level</li>

<li>Audit CC&amp;Rs for solar panel and EV charging prohibitions — repeal any outright bans</li>

<li>Update collections policy to require 30-day certified mail cure notice before lien or foreclosure action</li>

</ul>

<h2>How APM Helps Delaware HOA Boards Stay Compliant</h2>

<p>APM's remote HOA management service monitors Delaware CICOA updates and provides client boards with compliance guidance, updated policy templates, and record management support. Our team tracks legislative changes and ensures Delaware client associations stay current with reserve fund, collections, and electronic governance requirements. <a href="/remote-hoa-management/delaware">Learn about our Delaware remote management services</a>.</p>

<p><em>Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Delaware attorney for guidance specific to your community.</em></p>