2.4 Federal and State Statutory Compliance

While community associations operate primarily under local property covenants, they are subject to a complex web of federal and state statutes. For the CMCA exam, a community manager must identify and apply these federal laws to daily operations. Ignorance of federal compliance can lead to investigation by federal agencies, such as the Department of Housing and Urban Development (HUD) or the Federal Communications Commission (FCC), resulting in severe financial penalties and lawsuits.

The Fair Housing Act (FHA)

The Fair Housing Act (FHA) prohibits discrimination in housing-related transactions based on seven protected classes: race, color, religion, national origin, sex, familial status, and disability. In community associations, FHA compliance issues most frequently arise in two areas: familial status and disability.

Familial Status

Familial status protects families with children under the age of 18. Associations cannot enact rules that target or restrict children unless the rule is directly related to health and safety and is written in the least restrictive way possible.

• Compliant rule: "All children under 14 must be supervised by an adult in the pool area for safety." (This is a safety-oriented rule).
• Non-compliant rule: "Children are not allowed to play in the common area courtyards." (This is discriminatory against families with children).

Disability: Accommodations vs. Modifications

Under the FHA, associations must allow exemptions to rules or physical changes to properties to accommodate individuals with physical or mental disabilities:

• Reasonable Accommodations: These are changes to rules, policies, practices, or services. The most common accommodation is granting an exception to a "no-pets" policy for an emotional support animal (ESA) or service animal. ESAs are not considered pets under federal law, so pet fees and size restrictions cannot be applied. Another common accommodation is assigning a parking space near an owner's unit.
• Reasonable Modifications: These are physical changes to the common elements or the individual unit, paid for by the resident. Examples include installing a wheelchair ramp, adding grab bars in a bathroom, or lowering mailboxes. The association must permit these changes but can require that they meet aesthetic standards and be removed (restored) when the resident vacates, if reasonable.

The Americans with Disabilities Act (ADA)

The Americans with Disabilities Act (ADA) prohibits discrimination against individuals with disabilities in all areas of public life, including places of public accommodation. Typically, community association common facilities (pools, clubhouses, private roads) are private property and are not subject to the ADA. However, if the association permits the general public to access or use these facilities, they become places of public accommodation and must comply with ADA accessibility standards (such as installing pool lifts or accessible restrooms). Examples that trigger ADA compliance include:

• Renting the clubhouse to non-residents for weddings or meetings.
• Selling pool memberships to the public.
• Hosting a public polling place or running a commercial leasing office in the clubhouse.

FCC Over-the-Air Reception Devices (OTARD) Rule

The Federal Communications Commission (FCC) enforces the Over-the-Air Reception Devices (OTARD) Rule. This rule protects a resident's right to install satellite dishes and antennas to receive video programming.

Under the OTARD rule, associations cannot prohibit:

• Satellite dishes that are one meter (39.37 inches) or less in diameter.
• Antennas designed to receive local television broadcast signals.

These devices can be installed on areas within the owner’s exclusive use or control, such as a balcony, patio, or backyard. The association cannot impose rules that unreasonably delay installation, unreasonably increase the cost, or prevent the resident from receiving an acceptable quality signal. However, the association can prohibit residents from installing antennas or dishes on common elements, such as a common roof or exterior hallway wall, which are not under the owner's exclusive control.

graph TD
    OT["OTARD Rule Coverage"] --> EX["Exclusive Use Areas<br/>(Balconies, Patios, Backyards)"]
    OT --> CE["Common Elements<br/>(Common Roofs, Exterior Walls)"]
    
    EX --> EX_OK["Installation Allowed<br/>(Cannot prohibit dishes <= 1m)"]
    CE --> CE_NO["Installation Prohibited<br/>(Association can restrict/ban)"]
    
    style OT fill:#1e3a5f,color:#fff
    style EX fill:#2d5a87,color:#fff
    style CE fill:#2d5a87,color:#fff
    style EX_OK fill:#2e7d32,color:#fff
    style CE_NO fill:#c62828,color:#fff

The Fair Debt Collection Practices Act (FDCPA)

The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the behavior of third-party debt collectors. It prohibits harassing phone calls, misrepresentation of debt, and contacting debtors at unreasonable hours.

For community associations, the manager must understand who is considered a "debt collector" under the law:

• The Association: Generally, the association collecting its own assessments is not considered a third-party debt collector and is exempt from the FDCPA.
• The Management Company: In some jurisdictions, the management company acts as the agent of the association and may also be exempt when collecting current debts, though state laws vary.
• Attorneys and Collection Agencies: These entities are third-party collectors and must comply strictly with FDCPA guidelines when pursuing delinquent assessments.

Even if exempt from the federal FDCPA, community managers must adhere to professional debt collection standards and any state-level fair debt collection laws, which often apply directly to associations and their managers.