When Is a Kentucky HOA Rule Unenforceable?

A board can announce a rule, but announcing it is not the same as being able to enforce it. In Kentucky, a rule has to clear several hurdles before it binds a homeowner — and which hurdles depend on whether your community is under the 2023 Planned Community Act. For your specific situation, a licensed Kentucky attorney is the right resource. This is general information, not legal advice.

The general tests, and where Kentucky's rule power comes from

The tests that apply in most states also apply here: a rule generally has to be properly adopted, consistent with the recorded declaration, and reasonable, and it can't conflict with federal law such as the Fair Housing Act, the FCC's OTARD antenna rule, or the Freedom to Display the American Flag Act. Those tests, and how uneven enforcement is treated, are explained in When Is an HOA Rule Unenforceable?.

In Kentucky, the recorded declaration and bylaws are the main sources of a board's power, alongside the Kentucky Planned Community Act (KRS 381.785 to 381.801) and the nonprofit corporation statutes in KRS Chapter 273.

Does Kentucky's Planned Community Act override older HOA documents?

Only where a section specifically says so. KRS 381.786(1) makes all Kentucky planned communities subject to the act, but unless specifically stated, nothing in it invalidates a provision that was in a governing document when recorded, if the document was adopted or recorded before June 29, 2023. The political-sign rule in KRS 381.800 is one section that does.

The act covers "a group of residential dwellings, excluding condominiums, composed of individual lots" where a deed, common plan, or declaration requires membership in an association or shared facilities. It excludes arrangements whose only shared expense is a common road, and neighborhoods that don't have a homeowners' association.

Coverage is broad, with protection for older documents. KRS 381.786(1) says "all planned communities in this Commonwealth are subject to the provisions of KRS 381.785 to 381.801," but adds: "Unless specifically stated, nothing in KRS 381.785 to 381.801 shall invalidate any provision of a document that governs a planned community if that provision was in the document at the time the document was recorded and the document was adopted or recorded prior to June 29, 2023." So for a community whose documents predate the act, an original provision usually stands unless a section of the act specifically says otherwise. The political-sign rule below is one section that does.

How the board's rule power is set up (KRS 381.787, 381.793, 381.798)

The act points back to the governing documents. Under KRS 381.787(3), "Unless otherwise provided in the governing documents, the board of directors shall be authorized to carry out the provisions of KRS 381.785 to 381.801." The declaration or bylaws must provide for "The powers and duties of the board" and for "The frequency, time, and place for holding board meetings and the manner of and authority for calling, giving notice of, and conducting board meetings." The bylaws are therefore where the procedure for adopting a rule is usually found, and a rule announced outside that procedure stands on weaker ground.

Board meetings are generally open: "Unless otherwise specified in the bylaws, board meetings shall be open to the owners except during executive sessions."

Owners' duty to comply runs to rules that were properly made. KRS 381.798 requires owners, residents, and tenants to comply with recorded covenants "and with the bylaws, rules, and regulations of the association, as lawfully amended."

Fines need written notice and a chance to be heard (KRS 381.797)

For a planned community under the act, the assessment for each lot includes "Fines for violations levied by the board," along with enforcement costs that can include "reasonable attorney fees." Before any fine, the act sets a minimum process: "Prior to imposing a charge for fines, damages, or an individual assessment pursuant to this section, the board shall give the owner a written notice and the opportunity to be heard." A fine imposed without that notice and hearing is open to challenge on that basis alone. See Fighting an HOA Fine in Kentucky.

Standards for directors (KRS 273.215, KRS 381.793)

The act requires the association to be organized as a nonprofit corporation under KRS Chapter 273 or as an unincorporated nonprofit association under KRS Chapter 273A. For a nonprofit corporation, KRS 273.215 requires a director to act "In good faith," "On an informed basis," and "In a manner he honestly believes to be in the best interests of the corporation." KRS 381.793(3) applies the same standards to "A board director of an unincorporated association."

These standards come with a limit on liability. Under KRS 273.215(5), a director's action is not a basis for damages or an injunction unless the director breached those duties, and a damages claim also requires conduct that amounts to "willful misconduct or wanton or reckless disregard for human rights, safety or property." An arbitrary or punitive rule can raise questions under these standards, but the statute sets a high bar for holding a director personally liable.

Can my HOA ban political signs in Kentucky?

Not during the election window. Under KRS 381.800, planned-community governing documents may not prohibit owners or residents from displaying political yard signs outdoors on their property from 30 days before to 7 days after any special, primary or regular election, or longer if local ordinance provides. Reasonable placement, size and manner rules are allowed, and contrary existing provisions are void.

One category of rule is now off-limits by statute. KRS 381.800 was created by the 2023 Planned Community Act and amended by the 2025 General Assembly (HB 27, ch. 32, signed March 18, 2025). It provides that an association's governing documents "shall not prohibit the outdoor display of political yard signs by an owner or resident on the owner's or resident's property." The protection runs during an election window: signs may be displayed "no earlier than thirty (30) days before any special, primary, or regular election and no later than seven (7) days after that election unless a longer time period is provided by local ordinance."

The statute still lets governing documents include "reasonable rules and regulations regarding the placement, size, and manner of display of political yard signs." And it reaches older covenants. Every planned community in Kentucky is subject to the sign rule, and "any provision of any existing governing document of a planned community in contravention of subsection (1) of this section is void." So a flat ban on political signs in an older recorded declaration is, by the statute's own terms, unenforceable.

Start with the actual documents

When a rule seems questionable, the starting point is the recorded declaration and the adopted rule, read together. A records request can reach the adopted rules, the minutes showing how (or whether) a rule was passed, and any fine schedule.

Where to turn

When a homeowner believes a rule is invalid or is being enforced unevenly, the avenues include raising it with the board in writing, the courts, and a licensed Kentucky attorney to evaluate whether a specific rule is enforceable against a specific owner.

Sources

• KRS Chapter 381 — full chapter
• KRS 381.785 — Definitions for KRS 381.785 to 381.801
• KRS 381.786 — Planned communities subject to KRS 381.785 to 381.801
• KRS 381.787 — Establishment and organization of planned community; board of directors
• KRS 381.793 — Quorum; open board meetings; standards for board directors
• KRS 381.797 — Elements of assessments; notice of charges
• KRS 381.798 — Compliance by persons with ownership interest
• KRS 381.800 — Display of political yard signs; conditions; existing contrary provisions void
• KRS 273.215 — General standards for directors
• Kentucky 2025 HB 27 (ch. 32) — amendment to KRS 381.800
• Kentucky 2023 SB 120 (ch. 23) — Planned Community Act enactment