Overview of Kentucky HOA Law Changes 2021–2025
Kentucky made a major structural change to its community association law during this period: it enacted its first comprehensive statute governing planned communities (HOAs), an area that previously had no dedicated statutory framework in Kentucky.
2023 Legislative Session
SB 120 — Kentucky Planned Community Act
The Kentucky General Assembly passed SB 120, creating the Kentucky Planned Community Act, signed by Governor Beshear and effective in June 2023. This was the first time Kentucky planned communities (HOAs, as distinct from condominiums) operated under a dedicated statutory framework rather than relying solely on their own declarations and general corporate law. Kentucky condominiums continue to be governed separately — by the 2011 Kentucky Condominium Act for newer condos and the older Horizontal Property Law for pre-2011 condominiums.
Key provisions of the Planned Community Act include: declarations must define a developer control period and specify how and when developer control ends; associations gained the authority to enter lots to fulfill association responsibilities (such as maintenance the association is obligated to perform); boards must adopt an annual budget, which may include reserve funding for capital maintenance and repair; associations above a certain revenue threshold must prepare an annual financial report; if a board proposes an assessment increase of more than 15% over the prior year, owners must ratify the increase, and owners may also vote to rescind or reduce special assessments; annual meetings must be held with a quorum of 10% of the ownership unless the bylaws state otherwise; proxies are permitted and may last up to one year; cumulative voting is prohibited; and all board meetings other than executive sessions must be open to owners.
Board Action Checklist
- Confirm whether your community is a "planned community" now governed by the 2023 Planned Community Act, or a condominium governed by the 2011 Condominium Act or the older Horizontal Property Law
- Review your declaration's developer control provisions against the Act's requirement to define when and how developer control ends
- Confirm your board is preparing an annual budget and, if your association's revenue meets the statutory threshold, an annual financial report
- Update assessment-increase procedures to require owner ratification for any increase exceeding 15% over the prior year
- Confirm your annual meeting quorum is set at 10% of ownership (or your bylaws' own stated threshold) and that non-executive board meetings are open to owners
How APM Helps Kentucky HOA Boards Stay Compliant
APM's remote HOA management service monitors Kentucky HOA and condominium law updates and provides client boards with compliance guidance and updated policy templates as the law changes. Learn about our Kentucky remote management services. Contact us at billing@apmhoa.com or call 810-777-7060.
Legal disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Kentucky attorney for guidance specific to your community.
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