Oregon Condo Governance Part 1: It's Not About Control
Updated: Aug 18
Oregon's Condominium Act (ORS Chapter 100) was written to establish a clear framework for managing shared real estate. It gives unit owner associations the authority necessary to maintain common elements, manage budgets, and protect overall property values.
Somewhere along the line, however, a fundamental misunderstanding took hold in too many Oregon condominium communities: the belief that an elected board of directors operates as a local government with unlimited authority - - or worse, a private kingdom.
It doesn't.
An HOA board is not a kingdom or city council, and CC&Rs are not municipal ordinances to be rewritten at the whim of whoever holds a seat on the board. A board is simply an administrative body bound strictly by state statute, the recorded declaration, and the association bylaws.
Most importantly, board members are fiduciaries to the association as a whole and to all unit owners collectively.
The contents of this article reflect commentary on real estate governance and general Oregon statutory principles. This material is not legal advice. Condo governance issues are highly fact-specific; if you or your board are dealing with a live dispute, seek counsel from a licensed Oregon real estate attorney and not from this educational commentary.
In plain terms, being a fiduciary means there is an underlying legal obligation to act in the best financial and operational interests of the entire community, not their own personal interests, ego, or convenience. It requires transparency, fairness, and prudent stewardship of other people's money, property, and property rights.
Yet board overreach remains one of the most persistent disruptions in condominium living. It happens the moment volunteer board members forget they are fiduciaries and begin treating the property as their private kingdom, where personal preferences replace contract law and owner concerns are treated as nuisances.
That "kingdom" mentality typically shows up in four distinct ways:
1. Muting Dissent and Dismissing Owners
When a board views itself as a ruling class rather than an elected committee of volunteers, open communication collapses. In the era of virtual board meetings, this overreach has taken a literal form: board presidents opening meetings by warning unit owners that anyone whose "tone" or topic they dislike will be instantly muted or removed. Valid questions regarding finances, vendor contracts, or maintenance schedules are met with silence, deflections, or censorship. When a board uses the "mute" button to avoid uncomfortable questions and treats co-owners like unruly subjects, it forfeits its legitimacy as a governing body.
2. Rule-Making Beyond Statutory Authority
Boards frequently confuse administrative rules with recorded covenants. While ORS 100.405 grants associations the authority to adopt reasonable rules governing common elements, boards often attempt to enact sweeping restrictions on individual unit use, such as leasing bans, architectural mandates in private spaces, or random pet restrictions, without passing formal amendments to the declaration or bylaws. If a restriction isn't backed by the recorded documents, a board vote cannot simply invent it out of thin air or enforce it.
3. Selective Enforcement and Tyranny
In a kingdom, rules apply to subjects, not the rulers. In an HOA, rules apply to everyone. Governance overreach frequently manifests as selective enforcement through ignoring violations by favored neighbors or board members themselves while issuing immediate denials or fines to others. When board members use enforcement power as a tool for personal preferences, vendettas, or micromanagement rather than objective stewardship, they may expose the association, and often themselves, to legal liability. While the Business Judgment Rule generally shields volunteer directors from honest mistakes, Oregon law does not protect board members who act in bad faith, exceed their statutory authority, or pursue personal agendas.
4. Ignoring Procedural Due Process
Oregon law explicitly requires notice, transparency, and an opportunity to be heard before fines or sanctions can be imposed. Yet boards routinely conduct association business in shadow executive sessions, fail to properly publish complete meeting minutes, or levy fines without formal hearings. Executive sessions under ORS 100.420 exist for narrow statutory purposes, such as legal consultation or sensitive personnel matters, not as a shield to hide routine decisions from unit owners or to silence dissenting voices.
The core purpose of condominium governance is stewardship; it's not about control.
When a board loses sight of its limited statutory role and begins running the property like a kingdom, property rights suffer, sales friction increases, and the community splits and deteriorates into conflict. A rogue board doesn't just make living in the building miserable; it actively degrades the resale value of every unit in the association. When a board creates chaos, agents notice, lenders back away, and buyers move on to the next property. Buyers don't ever buy a home to be governed by the subjective tastes, personal egos, or administrative mute buttons of three or four neighbors; they buy expecting their investment to be managed according to the law and the recorded contracts, and to be treated fairly and with respect.
This post is published strictly for commentary and educational purposes based on general references to Oregon statutory frameworks. It is not legal advice or professional real estate advice. If you or your association are facing a specific legal dispute, consult a qualified real estate attorney, not this post.
Next in Part 2 of this series, we’ll tackle financial mismanagement, deferred maintenance traps, and the hidden danger of artificially low assessments. In Part 3, we’ll provide the exact legal playbook under Oregon law for how unit owners can recall a rogue board.
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Until soon enough,
Jeff.
ABOUT THE AUTHOR: I am a self-retired real estate professional with a career spanning 47 years. Throughout decades of market changes, I remained dedicated to the idea that real estate is about more than square footage—it’s about the human element. Today, I write about the lessons learned from a lifetime of helping people find the place that truly feels like home, hoping that sharing these insights will help the next generation of agents better serve their clients and find fulfillment in their own careers.
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