Is Putting Up An Assisted-Living Business In An HOA Allowed?

Starting an assisted-living business in an HOA can raise several questions. There are plenty of things to consider, especially given the situation’s complex nature and the laws surrounding it. Associations tend to have strict rules that govern residential and commercial use. As such, opening an assisted living facility may ruffle some feathers.

What is an Assisted-Living Business?

An assisted-living business provides housing and care for individuals who require assistance with daily activities such as bathing, dressing, medication management, and mobility. More often than not, these individuals refer to seniors and people with disabilities.

These facilities allow residents to live independently while accessing the support they need. Assisted-living homes are typically smaller in size compared to nursing homes. As such, they serve only a few residents, often within a residential property.

While assisted-living businesses can vary in scope, from a few residents to a full-scale facility, they are subject to various regulations and standards related to health, safety, and zoning. These homes are often operated out of a single-family house, raising the question of whether they can be established within HOA neighborhoods.

Can the Board Prohibit an Assisted-Living Business in an HOA?

HOAs are responsible for enforcing the community’s rules and regulations, which are designed to maintain the neighborhood’s aesthetic, order, and quality of life. The authority of the HOA board often includes regulating how owners can use homes within the community. Many HOAs explicitly prohibit running businesses out of residential properties, especially those that increase traffic, noise or otherwise disrupt the residential nature of the neighborhood.

However, an HOA cannot impose an outright ban on assisted-living homes. The Fair Housing Act protects the ability to offer housing to seniors and people with disabilities. This federal law prohibits discrimination based on protected classes, including age and disability. There may also be state-level legislation that offers protection to an assisted-living business in an HOA.

Understanding Limitations of Assisted Living Home Business in an HOA

While the Fair Housing Act can’t prevent the elderly or disabled from living in the community, other considerations must be considered. These include HOA restrictions for residential assisted-living businesses and zoning issues.

1. HOA Rules

Every resident within an HOA community must follow the rules in the governing documents. These rules are designed to ensure the neighborhood maintains a certain standard of living.

Although the FHA protects seniors and disabled people, HOA rules still generally apply to them. For example, if the HOA has a rule against loud noises past a specific time, those living in the assisted-living home must abide by it. Of course, not all rules may apply, as reasonable accommodations may come into play.

2. HOA Architectural Standards

Most HOAs have strict architectural standards that govern what modifications can be made to a home’s exterior and interior. Homeowners must often submit architectural review requests to gain approval for any structural changes.

Assisted-living businesses may need to modify a property to accommodate residents with special needs. These changes could include installing ramps, widening doorways, or adding medical equipment. When making design changes, it is essential to coordinate with the HOA and follow the proper procedures.

While the HOA can’t reject reasonable accommodations without justifiable cause, the assisted-living business must still comply with most design rules. For example, if the HOA only allows a specific color palette for the home exterior, the facility must adhere to it,

3. Zoning Considerations

In addition to HOA rules, it is important to consider the zoning laws of the local municipality. Zoning regulations dictate how owners can use properties and operate businesses within residential zones. An assisted-living business may fall under a category that requires special zoning permissions or a variance to operate legally in a residential area. Additionally, zoning ordinances may stipulate occupancy limits.

Before starting an assisted-living business, it’s crucial to check with local zoning authorities to determine whether zoning laws affect the property in any way. Even if the HOA allows the business, local zoning laws may impose additional restrictions or make it impossible to operate within the neighborhood.

Advice: Choose a Property Outside of an HOA

Clearly, there are several potential challenges and restrictions to operating an assisted-living business within an HOA. Therefore, choosing a property outside of an HOA makes more practical sense.

Non-HOA properties do not have the same community-wide rules and governing documents. This provides homeowners with more freedom to operate a business from their residences. Moreover, non-HOA properties only typically fall under local zoning laws. As such, the approval process tends to follow a simpler and less restrictive format.

Choosing a property outside of an HOA allows for greater flexibility, both in terms of modifications and operations. Homeowners do not have to worry about breaking the rules of an HOA. It can also reduce the potential for conflict with neighbors. After all, many neighbors may not appreciate the added traffic or changes that an assisted-living facility brings.

All Things Considered

In general, the Fair Housing Act prevents the prohibition of an assisted-living home in an HOA. However, that does not mean the facility is free from restrictions and requirements. Both HOA restrictions and local zoning laws still apply. There is also the matter of potential backlash from neighbors. When it comes down to it, homeowners may have an easier time choosing a home outside of an HOA.

Managing homes and homeowners can come as a challenge to many HOA boards. This is where an HOA management company comes in. Start looking for the best one in your area using our comprehensive online directory!

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