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The Community Associations Institute (CAI) recognizes the right and the obligation of community associations to regulate certain activities within their communities, including reasonable rules and restrictions governing the presence of home-based childcare facilities, which may otherwise interfere with or disrupt the quiet enjoyment and day-to-day living for community residents.  


CAI also recognizes the importance of balancing the growing need for quality childcare facilities with the fundamental right of community associations to self-govern.  Today’s residential communities are experiencing an increase of commercial activity and services within residential environments.  This, in turn, creates the demand to bring key services closer to communities in need.  With this demand comes the need to have reasonable rules and regulations in place to allow for nonresidential services and activities in residential communities without impacting the community's residential quality or quiet enjoyment. Home-based childcare facilities present unique challenges to community associations, encompassing concerns such as access to common elements, liability, use of amenities such as parking, playgrounds, and swimming pools, as well as compliance with architectural standards. Communities must retain the ability to self-govern and adopt reasonable rules and regulations which best fit a community’s particular needs, rather than rely upon federal- or state-imposed uniform approaches. 


CAI supports legislation that recognizes the core principle of self-governance and co-ownership of common property and the community association housing model. CAI encourages policymakers to engage industry stakeholders, including community association homeowners, board members, volunteer leaders, and business partners, on this issue. Further, CAI believes crafting legislation and regulation should always take place in an open and transparent manner, providing the opportunity for comment by all interested parties. 

CAI supports legislation that protects the authority of a community association to develop reasonable rules and regulations, including restrictions, regarding the operation of childcare facilities within their associations. 

CAI encourages community associations to adopt reasonable rules and regulations addressing home-based childcare facilities that allow for the operation of home-based childcare. Such use restrictions should be applied uniformly according to objective criteria. 

CAI supports legislation that preserves the ability of community associations to regulate access to common amenities (such as swimming pools or club rooms) for nonresident patrons of home-based childcare facilities, and for community associations to require that childcare facilities indemnify the community association as a prerequisite for allowing access. 

CAI supports legislation that preserves the ability of community associations to impose reasonable architectural rules to minimize the disruption of certain equipment, such as play areas located on the same lot as the home-based childcare facility. 

CAI supports legislation that preserves the ability of community associations to require that a home-based childcare facility be licensed and insured, per their respective state and local regulation for their respective occupation. 

CAI recommends that community associations consider adopting reasonable rules and regulations governing the use of a residence to operate a home-based childcare facility, which may include:   

  • That the facility use is not immediately apparent or detectable from outside of the residence or Lot. 
  • That the facility complies with applicable laws and permit requirements. 
  • That the facility is properly licensed by all applicable governmental entities, where required. 
  • That the property owner, business operator, and the childcare business are covered by general liability and property damage insurance. 
  • That the facility does not unduly impact parking, traffic, or noise levels within the community. 
  • That the facility otherwise conforms to the community’s governing documents. 
  • That the facility adheres to any reasonable and appropriate limitations on the number of children served by the facility at any given time. 


Policy History​

Approved by the Government and Public Affairs Committee, November 14, 2023 

Adopted by the Board of Trustees, February 14, 2024