When HOA Officers and Directors Can Become Personally Liable for Their Actions

Volunteer officers and directors of homeowners associations and condominium associations are not generally personally liable to third parties, including homeowners, for monetary damages resulting from negligent acts or omissions in the performance of their duties.

That protection is important. Community associations rely heavily on volunteer leadership, and most officers and directors serve without compensation. If those individuals could easily be subjected to personal liability for every decision they make while serving the association, many qualified people would be discouraged from participating in the management and operation of their communities.

For that reason, state statutes and association governing documents commonly provide protections against personal liability for volunteer officers and directors acting within the scope of their duties. In addition, there is a federal law known as the Volunteer Protection Act of 1997, which provides limited protection against liability for volunteers serving nonprofit organizations, including many homeowners associations.

The protections provided by statutes and governing documents often include: