A Louisiana HOA used bankruptcy to amend covenants 12 votes to 6, against a 66⅔% threshold
A Louisiana HOA used bankruptcy to amend covenants 12 votes to 6, against a 66⅔% threshold
2026-09-10 · Louisiana · Courts
What happened. The one Louisiana community that has lowered its own covenant-amendment threshold in the last two years did not do it under the Planned Community Act. It did it in federal bankruptcy court.
In re Port Louis Owners Association, Inc., No. 24-12511, Memorandum Opinion and Order, ECF Doc. 383 (Bankr. E.D. La. May 20, 2026) (Grabill, J.), nine pages, published in the U.S. Courts Opinions collection. The association filed on December 26, 2024 under Subchapter V of Chapter 11; the Subchapter V Trustee was Greta M. Brouphy; the confirmation hearing ran April 14 and 20, 2026.
This is a final, operative court order, and it is one decision on unusual facts. It is not a route, and nothing in it suggests any wrongdoing by anyone. The individuals the opinion names are named in official capacities because the published opinion names them.1
What the association looked like
“Instead, Port Louis HOA exists as an association of 53 townhouses spread across 9 buildings.”
“Of the 53 units in the Port Louis HOA, 25 are delinquent in paying association dues as of October 29, 2025. The average delinquency is more than $20,000. Monthly dues average approximately $380 to $400, meaning that many owners have been living in their townhouses for years without paying dues.”
What broke it
“In the aftermath of Hurricane Ida, the costs of procuring master insurance policies increased dramatically, if such a policy can be obtained at all. … Moreover, Durst has been advised by the Louisiana Department of Insurance that an association of townhomes such as Port Louis HOA should not serve as the insured party on a master insurance policy.”
That second sentence is a court-found fact we have seen nowhere else, and it is the kind of thing a Louisiana townhouse board needs to know exists.
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Related Louisiana HOA Topics
- In re Port Louis Owners Ass’n, Inc., No. 24-12511 (Bankr. E.D. La.) — case record and Memorandum Opinion and Order of May 20, 2026, U.S. Courts Opinions collection ↩
- La. R.S. 9:1141.14 — Amendment to declaration; community documents; use restrictions ↩
- La. R.S. 9:1141.2 — Definitions, including “supermajority vote” ↩
- La. R.S. 9:1141.32 — Assessments, including the acceleration trigger ↩
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