HOA and Condo Cell Tower Leases: What Boards Need to Know

Who Has the Authority to Sign?

For HOA and condo associations, the authority to execute long-term real property leases typically rests with the board of directors — but subject to important limitations. Before any cell tower lease is signed, the board must verify:

• Whether the governing documents (CC&Rs, bylaws, declaration) require membership vote for long-term property commitments
• Whether the lease term exceeds any maximum duration permitted for board-only action
• Whether lender consent is required for any association property that is collateral for a community loan
• State condominium or HOA law requirements that may impose additional approval steps

These requirements vary significantly by state and by the specific governing documents of each association. A cell tower lease executed without proper authorization creates legal risk for the board and the community.

How Cell Tower Lease Income Is Handled

Income from a cell tower lease on common area property flows to the association, not to individual owners. The board is responsible for determining how to treat this income — typically as revenue to the general operating fund, as a contribution to reserves, or as a special assessment offset.

Clear documentation of how the income will be used should be part of the board's resolution approving the lease. This protects board members from personal liability and provides transparency for community members.

Negotiating Considerations for Associations

Management company involvement. Many associations use property management companies. Ensure the management company is not negotiating the lease on your behalf without proper professional backup — property managers are not cell tower lease specialists, and their interest in a smooth transaction may not align with maximizing the community's lease income.

Aesthetic and community impact provisions. HOA communities often have strong preferences about equipment appearance. Negotiate for design review rights, equipment concealment requirements, and approval rights for any future modifications that affect the visual character of the community.

Resident communication. Many associations benefit from proactive communication with residents about a cell tower lease before signing — addressing EMF concerns, explaining the income benefit, and describing the equipment that will be installed. Getting ahead of resident concerns is easier than managing them after the fact.