Homeowners’ Associations: Looking Ahead to 2030 – What Obligations Lie Ahead?

A period is dawning for Owners’ Associations (OAs) in which obligations are becoming increasingly stringent. Whereas OA management used to revolve mainly around maintenance and finances, the focus is shifting towards sustainability, transparency and professional governance. With 2030 on the horizon, it is essential for flat owners, property investors and managers to look ahead. Below are six requirements that HOAs will soon have to meet.

1. Sustainability as a key prerequisite

The biggest change lies in the area of sustainability. European and national regulations are driving a significant reduction in CO₂ emissions from buildings. For owners’ associations, this means in concrete terms:

• Tighter energy label requirements for buildings;
• Mandatory measures to reduce energy consumption (insulation, HR++ glazing, efficient systems);
• In some cases, a (phased) obligation to phase out natural gas.

For older buildings in particular, this can lead to extensive and costly renovations. Owners’ associations will need to plan and finance these investments in good time.

2. Mandatory provisions and maintenance planning

An up-to-date Long-Term Maintenance Plan (MJOP) has been mandatory for some time, but enforcement remains lacking. This will change as we approach 2030. There will be greater emphasis on:

• Realistic and sufficiently high provisions in the reserve fund;
• Regular updating of the MJOP;
• Integration of sustainability measures into maintenance plans.

For all owners, and therefore also for investors, this means that monthly owners’ association contributions will rise in many cases.

3. Professionalisation of governance and management

The days of ‘informal’ owners’ associations are increasingly behind us. Both the legislator and the courts are moving towards expert boards, tasked with ensuring:

• Transparent decision-making;
• Clear recording of decisions;
• Compliance with statutory and constitutional obligations.

For larger owners’ associations, engaging a professional manager is becoming the rule rather than the exception.

4. Decision-making: greater pressure for cooperation

Not all sustainability measures can count on (unanimous) support from all owners. This can create tensions within owners’ associations, particularly when not all owners have access to (allocated) financial resources.

The legislator is seeking ways to facilitate decision-making, for example by:

• Lower voting thresholds for certain sustainability measures;
• More options to oblige individual owners to cooperate with collective measures.

However, this has not yet led to any changes in the legal rules on decision-making. For the time being, owners’ associations will have to make do with the option, now in place, for them to borrow money to implement sustainability measures. The idea is that this will make it easier to persuade owners without sufficient funds to come on board.

5. Financing and liability

As investments increase, so do the financial risks. Owners’ associations will make greater use of external financing, such as loans. This brings with it new considerations:

• Liability of individual owners;
• Liability risks in the event of improper management;
• Assessment of the HOA’s creditworthiness as a whole.

For property investors, this is an important part of the risk analysis when purchasing.

Conclusion

The legislator’s aim is for owners’ associations to be financially more robust, more sustainable and organised more professionally from 2030 onwards. For owners and investors, this means that passive membership is becoming less and less a given. Active involvement, forward thinking and timely investment are becoming crucial. The biggest pitfall is procrastination. What seems like a choice today may be an obligation tomorrow. By anticipating the 2030 requirements now, owners’ associations can avoid having to make costly and far-reaching decisions under time pressure in a few years’ time.