Client Alert: Essential Policy Resolutions Every Delaware Community Association is Recommended to Adopt
Date: October 6, 2026
1. Internal Dispute Resolution (Complaint) Procedures (29 Del. C. § 2544(8))
Under the Ombudsperson Act, each common interest community association must establish and adhere to written procedures for resolving complaints from unit owners and other interested parties. The Ombudsperson's Office has published a template Internal Dispute Resolution (“IDR”) procedure that associations should adapt to conform to their governing documents; if an association does not adopt its own, the template applies by default.The IDR framework requires the association to acknowledge receipt of an owner’s complaint in writing within 14 days, respond to and act upon the complaint within 20 days after receiving any requested supporting information, and provide at least 7 days’ notice of the date, time, and location at which the complaint will be considered. The owner must be given a full opportunity to present evidence and question witnesses. No later than 14 days after the meeting, the association must issue a written final determination that includes the reasons for the decision, references to applicable governing documents or law, the association’s registration number, the community manager’s name and license number, and notice of the owner’s right to file with the Common Interest Community Ombudsperson.
Adopting a formal IDR resolution provides a consistent, transparent, complaint-handling process in compliance with the Ombudsperson Act. It protects the association and unit owners by creating a reliable record, reducing avoidable disputes, and ensuring owners understand how their concerns will be handled.
2. Due Process / Hearing and Enforcement Procedures (25 Del. C. § 81-302(a)(11); § 81-302(c))
Under DUCIOA, an association may suspend unit owner privileges (other than the right to vote) or services (other than those necessary for habitability) for non-payment of assessments, impose late charges, and—after notice and an opportunity to be heard—levy reasonable fines for violations of the declaration, bylaws, and rules. Under the UPA, noncompliance with the code of regulations, rules, or declaration is grounds for an action for damages or injunctive relief by the council, an aggrieved unit owner, or a mortgagee.The executive board must use reasonable judgment in deciding whether to impose sanctions or pursue legal action, and may decline enforcement in good faith where the legal position is weak, the provision is inconsistent with current law, the violation is immaterial, or enforcement is not in the association’s best interests.
Because DUCIOA conditions the imposition of fines on “notice and an opportunity to be heard,” adopting a hearing and enforcement resolution gives the board a uniform framework for sanctions while protecting members’ due process rights and reducing the risk of inconsistent enforcement or challenges to board action.
3. Assessment Collection Policies (25 Del. C. §§ 81-315, 81-316)
Under DUCIOA, assessments must be made at least annually based on an adopted budget, which, for condominiums and cooperatives, must include a line item for the repair and replacement reserve. Past due assessments bear interest at the rate set by the association, not exceeding 18% per annum. The UPA likewise requires the condominium council to assess and collect funds from unit owners for common expenses, maintain a fully funded repair and replacement reserve, and charges assessed against units bear interest at up to 18% per annum from the thirtieth day following the assessment resolution and may be enforced by an action at law. The association has a statutory lien on each unit for assessments, fines, fees, late charges, interest, court costs, and reasonable attorneys’ fees. The lien is prior to all other liens except those recorded before the declaration, first or second security interests recorded before the assessment became delinquent, and governmental tax liens—with a limited super-priority for up to six months of customary assessments that prevails even over first and second mortgages. No foreclosure may commence unless the unit owner owes at least three months of assessments and the executive board expressly votes to foreclose against that specific unit; payments from delinquent owners must be applied first to unpaid assessments, then to late charges, then to attorneys’ fees and costs, and finally to all other charges.An assessment collection resolution translates these requirements into a clear, operational framework for collecting the funds needed to operate and maintain the community, promoting equal treatment, documenting collection decisions, and reducing legal exposure.
4. Record Retention and Inspection Policies (25 Del. C. § 81-318)
DUCIOA requires associations to maintain detailed financial records (kept in accordance with GAAP), minutes of all meetings, records of actions taken without a meeting, a membership list, and at their principal office the certificate of incorporation, bylaws, financial statements and tax returns for the past three years, and the most recent reserve study (for condominiums and cooperatives). Under the UPA, the condominium treasurer must keep detailed records of all receipts and expenditures—specifying and itemizing maintenance, repair, and replacement expenses of the common elements—and maintain an accurate record of assessments and payments by each unit owner; these records must be available for examination by unit owners during regular business hours. All records are available for examination and copying by a unit owner or authorized agent upon five days’ written notice identifying the purpose and specific records requested, subject to statutory exclusions for personnel matters, pending litigation, attorney-client communications, executive session minutes, and other unit owners’ files. The association may charge a fee not exceeding the actual cost of materials and labor.A records resolution establishes clear rules for preserving records, responding to inspection requests, and calculating permissible charges, promoting transparency and reducing the risk of missed obligations and inspection-related disputes.
Taken together, DUCIOA, UPA, and the Ombudsperson Act impose detailed procedural, financial, and recordkeeping obligations on Delaware community associations, and well-crafted policy resolutions covering internal dispute resolution, hearings and enforcement, assessment collection, and record retention and inspection are among the most effective tools a board has to meet those obligations consistently and reduce legal exposure. The attorneys at Whiteford regularly advise Delaware community associations and would be pleased to help your board review its existing policies and prepare, update, and adopt policy resolutions tailored to your association's governing documents and the applicable statutes.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.