The Washington DC Condominium Act is the foundation of condominium ownership and management in the District. It defines how condominiums are created, governed, and maintained. For condo boards and managers, understanding this law is key to running a community legally and efficiently.
What is the Washington DC Condominium Act?
The Washington DC Condominium Act appears under D.C. Code Section 42–1901.01 through Section 42–1904.18. It lays out the legal rules for condominium ownership and operation. The Act defines the rights of unit owners, the duties of the association, and the responsibilities of the board.
It applies to both developers and unit owners. When control transitions from the developer to the owners, the board becomes responsible for following all provisions of this law.
The Purpose of the District of Columbia Condominium Act
The Act was enacted to protect unit owners and ensure fair, transparent, and responsible management of condominium associations. It provides a legal framework that balances owners’ rights with the board’s authority.
Here are the goals of the DC Condominium Act:
- Regulate the creation and governance of condominiums.
- Define ownership and common element responsibilities.
- Establish board powers and duties.
- Set standards for assessments, budgets, and reserves.
- Create dispute resolution options for owners and associations.
Key Provisions Boards and Managers Should Know
The Washington DC Condominium Act is detailed, but several provisions stand out as essential for day-to-day operations. The condominium association bill of rights and responsibilities can be confusing to navigate. Below are the ones boards and managers must be most familiar with.
1. Association Powers and Duties (D.C. Code Section 42–1903.08)
This section grants associations the authority to manage common elements, levy assessments, and enforce rules. It also allows the board to enter into contracts, hire management, and maintain insurance coverage. Boards must always act in the best interests of the community and within the limits of their governing documents.
2. Maintenance Responsibilities (D.C. Code Section 42–1903.07)
The Act outlines who is responsible for maintenance. Associations must maintain common elements, while individual owners are responsible for their units. Boards must ensure regular inspections, repairs, and budgeting for major replacements.
3. Rules and Enforcement (D.C. Code Section 42–1903.08)
Boards have the power to adopt and enforce reasonable rules. That said, they must provide written notice and an opportunity for owners to be heard before imposing fines. Fairness and consistency are mandatory.
4. Insurance Requirements (D.C. Code Section 42–1903.10)
This section requires associations to maintain property and liability insurance. Policies must cover common elements and protect both the association and owners against losses. Reviewing coverage annually is a best practice for all boards.
5. Collection of Assessments and Liens (D.C. Code Section 42–1903.13)
Associations may collect assessments and, if necessary, place liens on delinquent units. These liens take priority over most debts, except property taxes and first mortgages. Boards must follow proper notice and filing procedures before pursuing foreclosure.
6. Transparency and Records (D.C. Code Section 42–1903.14)
Owners have the right to inspect budgets, meeting minutes, and financial records. Maintaining transparency builds trust and ensures compliance. Boards should organize their documents and make them available upon request.
7. Meetings (D.C. Code Section 42–1903.03 and Section 42–1903.04)
These sections explain how both the council of unit owners and the board of directors must conduct meetings. They require notice to all members, define quorum standards, and ensure that decisions are made in properly convened sessions. Holding open and transparent meetings keeps the community informed and helps prevent disputes.
8. Rights to Surplus Funds (D.C. Code Section 42–1903.11)
If an association collects more money than it spends in a fiscal year, the surplus must be applied to future expenses or credited back to owners. Boards can’t distribute profits as dividends. This keeps the association operating as a nonprofit entity and ensures fair use of member funds.
The Role of the Board Under the DC Condo Act
The Act clearly defines the board’s authority and obligations. Board members are fiduciaries, which means they must act honestly, prudently, and in the best interest of all owners.
Their primary duties include:
- Enforcing governing documents and community rules.
- Managing finances responsibly and approving budgets.
- Maintaining and insuring common elements.
- Conducting fair disciplinary hearings.
- Communicating decisions and maintaining accurate records.
Boards that fail to meet these obligations risk violating both the Act and their fiduciary duty to owners.
What the DC Condominium Act Requires from Managers
Community managers serve as extensions of the board. Their job is to ensure the association complies with both its governing documents and DC law.
Managers are expected to:
- Keep accurate financial records and reports.
- Carry out board directives properly and on time.
- Ensure vendors and contractors meet contractual terms.
- Provide procedural advice to help boards avoid violations.
- Communicate openly with residents and maintain professionalism.
While managers assist with operations, the board remains ultimately responsible for compliance under the law.
Common Violations and How to Avoid Them
Even well-intentioned boards can violate the Act without realizing it. To help prevent costly disputes, it is paramount to recognize common mistakes. These include the following:
- Fining owners without notice or hearings.
- Failing to allow record inspection requests.
- Using association funds for unauthorized expenses.
- Holding meetings without proper notice to owners.
- Ignoring voting procedures or quorum requirements.
Boards should schedule regular legal reviews, adopt written policies, and attend training sessions to prevent these mistakes.
Compliance With the DC Condominium Act
Compliance with the Washington DC Condominium Act protects the community’s financial stability and reputation. Following the law can also ensure the fair treatment of every homeowner.
The benefits of compliance are easy to see. For one thing, it promotes stronger trust and engagement from unit owners. This can also reduce legal disputes and penalties, leading to a more harmonious community.
Additionally, compliance helps ensure the association’s long-term financial health. Other than that, condo communities can look forward to higher curb appeal and increased property values. All of this contributes to resident satisfaction.
On the other hand, ignoring the law and failure to comply with the DC Condominium Act can lead to costly litigation. Not only that, it can negatively impact the association’s credibility and reputation.
Understanding Leads to Compliance
The Washington DC Condominium Act sets the legal framework for all condominium communities in the District. It defines how associations operate, what powers they hold, and how owners’ rights are protected. Board members should familiarize themselves with the law to avoid liability and ensure compliance.
TNWLC offers legal guidance to community associations in Washington, DC. Call us today at (202) 483-8282 or contact us online to get started!
RELATED ARTICLES:
- Who Is The HOA Board? Know Your Association’s Leaders
- Breaking Down HOA Financial Statements
- Short Term Rental In DC: How The Regulations Affect HOAs And Condos
