A Concise Guide to Homeowners Associations in India

Table of contents

• Introduction
• What is a homeowners association, and how does it work?
• What does a homeowners association aim to do?
• Powers and duties of a homeowners association in India
• If your association is not doing its job, what can you do?
• Pros and cons of having a homeowners association
• How to start an Apartment Owners Association: What you’ll need

Imagine living in a complex (society) where every common area is spotlessly clean, the elevators function flawlessly, the children’s play area is inviting, and the parking area is tidy. This order is rarely accidental; it is thanks to a homeowner’s association (HOA) that works to ensure that residents enjoy a well-maintained and harmonious living environment.

While these associations may seem formal, they’re essentially neighbours joining forces to keep things running smoothly. Whether you’re curious about how they work or considering starting one, here’s a clear and concise guide to understanding homeowners associations in India.

What is a homeowner association, and how does it work?

An HOA is a cooperative society where flat owners form a society’s governing principles and by-laws.

In India, these associations are typically formed under The Societies Registration Act, 1860 or state-specific acts, which means rules may vary slightly across different regions. For example, under Maharashtra Flat Ownership Act, 1963, a developer must form a society within four months of selling 60% of the flats.

But you don’t always have to wait for the developer to form the society. Under the Karnataka Apartment Ownership Act, 1972, apartment owners can form an association once a certain percentage of the apartments have been sold. In many states, including Delhi and Maharashtra, ten flat-owners are enough to promote a cooperative housing society.

What does a homeowners association aim to do?

The responsibilities of a homeowners association (HOA) typically include maintaining and repairing common areas, ensuring the safety and security of residents and property, collecting payments for common assessments, and imposing reasonable fines for rule violations.

If a building does not have a housing society, it may be due to a dispute between members or a lack of interest among the owners to maintain or upkeep the premises. If you’re considering buying a house in a building where society has not been formed, you may need to explore if there is any such problem or dispute. In case the developer does not form a society, the rights to the terrace and the compound continue to rest with them. 

Powers and duties of Homeowners Association in India

The main goal of an HOA is to maintain the community’s value and make it a well-organised place to live. Common responsibilities include:

• Maintenance of common areas: Overseeing landscaping, security, waste management, and more.
• Rules enforcement: Ensuring residents adhere to guidelines on noise levels, pet policies, and parking.
• Dispute resolution: Mediating conflicts among residents to maintain a peaceful environment.
• Celebration or community building: Organising events around festivals to foster a sense of community among the residents. 
• Security: Hiring security for monitoring the apartment’s entrances and exits or patrolling the premises. The association may also install security cameras in common areas for surveillance. 

The association is funded through monthly or annual maintenance fees. The association is responsible for collecting these fees from residents and planning budgets for general maintenance, repairs, and enhancements within the community.

If residents don’t pay maintenance fees or adhere to community guidelines, the association has the right to issue notices or, in extreme cases, seek legal recourse. This legal framework ensures that the apartment complex remains functional, safe, and peaceful for all residents.

If your association is not doing its job, what can you do?

Homeowners associations typically operate with the consent of the majority of homeowners. You can resolve disputes internally during association meetings. Additionally, if you believe the HOA or any of its members are not fulfilling their responsibilities, you may propose a motion of no confidence against them.

Disputes with the HOA may also be settled through legal proceedings in court. The overall approach is similar across states however specific legal frameworks may differ. In these cases, consulting a property lawyer is often the best course of action.

Before you consider legal action, talk to your neighbours. If multiple residents share your concerns, you can form a group and collectively address the issue with the HOA, as a united front can be more effective.

Pros and cons of having a homeowners association

While there are several benefits to living in an HOA community, such as efficient operations, clean, well-maintained community areas, and an involved community, there are also potential drawbacks. The fees may be too hefty for some people, and others may find the rules of an HOA too restrictive. 

How to start a homeowners association: What you’ll need

The formation of your association should be carried out according to the Government Association Act applicable in that city. Starting an apartment owners’ association in India generally involves similar steps, with some differences across states due to varying local laws. In other words, if you own a flat, the procedure could be quite different than for owners of flats in Bangalore.

Here is a breakdown with specific information for Maharashtra, Karnataka, and Tamil Nadu:

1.  Gather support: In all states, the first step is to gain the majority support of residents, as a cooperative effort is essential for the association to function effectively. 

2. Draft a constitution or bylaws: Next, you must draft a clear set of rules, responsibilities, and structures. These bylaws define the association’s objectives, membership guidelines, and powers.

• In Maharashtra, apartment owners’ associations often follow the Maharashtra Cooperative Societies Act, 1960, which provides a structured framework for the cooperative housing model commonly used in the state. Bylaws must align with this Act’s requirements.
• In Karnataka, associations are governed by the Karnataka Apartment Ownership Act, 1972. This Act focuses on the rights and responsibilities of apartment owners and sets guidelines for drafting bylaws specific to apartment complexes.
• In Tamil Nadu, the Tamil Nadu Apartment Ownership Act, 1994 governs apartment associations, which includes detailed instructions on forming associations and drafting bylaws that cover management, maintenance, and member rights.

3. Register the Association: The registration process varies by state:

• In Maharashtra, apartment associations are typically registered with the Cooperative Department under the Maharashtra Cooperative Societies Act. 
• In Karnataka, associations can register with the Registrar of Societies under the Karnataka Societies Registration Act, 1960, or under the Apartment Ownership Act for added legal recognition.
• In Tamil Nadu, associations are registered with the Registrar of Societies under the Tamil Nadu Societies Registration Act, 1975, or, in some cases, under the Tamil Nadu Apartment Ownership Act for specific apartment-related provisions.

4. Elect Office Bearers: Across all states, electing office bearers such as the president, secretary, treasurer, and other positions is an essential step. These office bearers are responsible for day-to-day operations, financial management, conducting meetings, and addressing residents’ concerns.

Conclusion

Homeowners associations play an important role in creating a pleasant and organised community, which can also affect the resale value of the houses. Whether you’re joining, managing, or starting an HOA, understanding how these associations work can help improve life for everyone in the neighbourhood and ensure a harmonious, well-maintained, and supportive living environment.

Frequently asked questions

1.How are HOA fees determined?

The budget for society is calculated based on its requirements. Then it is shared among the residents and tenants based on the size of the property, amenities provided and operational costs. Sometimes, the fee is divided based on the share of ownership, where larger or higher-floor apartments contribute more, as they may consume more services or resources (like water or electricity).

HOA fees in India can vary significantly depending on the region, the type of development (luxury apartments versus affordable housing), and the services provided by the association. For example, the owner of a 3BHK in Kengeri, Bangalore, will pay very different fees from the owner of a 3BHK flat in Edappally, Kerala. Generally, residents are informed about the fee structure and any changes during the annual general meetings (AGMs) or other formal communications.

2.How often does the HOA board meet, and what do they discuss?

The HOA meets monthly to discuss any concerns in the society and make suggestions for any forthcoming requirements. The managing committee may also report work undertaken in the previous month, dues, or budgetary plans. Sometimes, these meetings are also attended by the residents.