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Characteristics and Types of Associations

Managing For Your Benefit

CHARACTERISTICS AND TYPES OF ASSOCIATIONS

CHARACTERISTICS OF A COMMUNITY ASSOCIATION

  • A Homeowners Association is an organization of owners. All owners become members of a community association when they accept a deed to a lot/unit located in a community association.  As a member, he or she has a voice and vote in the association affairs.  These votes are cast during Annual or Special meetings of the general membership.
  • The governing documents (i.e. CC&Rs, articles of incorporation, bylaws and rules and regulations) create obligations on the part of the homeowners and the community association.
  • Most community associations are set up as non-profit corporations and are subject to the laws affecting non-profit corporations.
  • The major responsibility of the association is to protect the investments and enhance the value of the property owned by the members by providing for the physical maintenance and operation of the shared property.
  • The association has other responsibilities too, such as enforcing the master regulations and architectural controls, and setting up an effective communication system among members.
  • THE HOMEOWNERS’ ASSOCIATION IS A BUSINESS! No matter what role you play in the association, one thing is certain – you will want it to operate as smoothly and efficiently as possible.  The most important thing to remember about a Homeowner’s Association is that it is a business, and to be successful, it must operate like one.

TYPES OF COMMUNITY ASSOCIATIONS

Condominium: In a condominium, the owner owns a separate interest in the unit or apartment together with an undivided interest in the common area.  Each member of the association is subject to a charge for a proportionate share of expenses for maintenance of common property and support of other necessary activities of the organization.  For example: If there are 50 units in a condominium association, each owner owns his/her individual unit (i.e. usually the airspace inside the four walls) plus 1/50th of the common areas.

Planned Community:  An individual owns an interest separate from the other owners, usually called a lot, parcel or residence. The common areas in a planned community are typically owned by the association (not the owners).