Frequently Asked Questions (FAQ)

A Homeowners’ Association (HOA) is a legal entity created by a real estate developer to manage and maintain a residential community.

An HOA:

• Enforces rules called Covenants, Conditions & Restrictions (CC&Rs)
• Manages shared spaces and amenities
• Transfers control to homeowners after most homes are sold

Most HOAs are nonprofit organizations and are governed by state laws. Their main goal is to protect property values and maintain the neighborhood.

A community association is a group of property owners or residents within a specific area.

These associations may:

• Be voluntary or required
• Serve as social or service organizations
• Act as governing bodies for neighborhoods or communities

They help manage shared interests and improve the community.

Association management refers to running the day-to-day operations of a community or organization.

It includes:

• Financial management
• Meeting coordination
• Maintenance oversight
• Member communication

Associations are unique because members both own and help govern the organization through a board of directors.

An association management company is hired by a community’s board to handle operations and administrative tasks.

Typical services include:

• Collecting dues and assessments
• Financial reporting
• Coordinating maintenance and vendors
• Providing legal and operational guidance

Some companies manage many communities, while others focus on individual properties.

If your community is not self-managed, contact information is usually available:

• On your community website
• Through your board of directors
• On the management company’s website

You can typically reach them by phone or online.

A community association manager (or managing agent) is hired to support the board.

They help:

• Enforce rules
• Manage finances
• Oversee daily operations
• Protect the association’s interests

A proxy is a person authorized to vote on behalf of another member at a meeting.

It can also refer to the document that gives this permission.

A quorum is the minimum number of members required to hold an official meeting.

The required number is defined in the association’s governing documents.

A board of directors is a group of elected or appointed individuals who manage the association.

They:

• Make decisions for the community
• Set policies and rules
• Oversee finances and operations

A board member may serve as president or chair.

• Question: What is CAI?
• Answer:

  Community Associations Institute (CAI) is a national organization that supports community associations.

  They provide:

  • Education and training
  • Resources for board members and managers
  • Advocacy and industry standards

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• Question: Is CAI a national organization or are they local to my area?
• Answer:

  CAI is a national organization with nearly 60 local and state chapters.

  Members can join a chapter in their area for local support and networking.

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CC&Rs (Covenants, Conditions & Restrictions) are rules that govern how a property can be used.

They may regulate:

• Property appearance
• Maintenance standards
• Home-based businesses
• Parking and rentals

These rules are legally binding and apply to current and future owners.

Bylaws define how the association operates.

They typically cover:

• Voting procedures
• Board structure
• Meetings and notices

Governing documents include all official rules and legal documents of the association, such as:

• CC&Rs
• Bylaws
• Articles of incorporation
• Operating rules

A lien is a legal claim against a property due to unpaid debts.

This may include:

• Mortgage payments
• Taxes
• HOA dues

A lien must usually be resolved before the property can be sold or refinanced.

The declaration (sometimes called the “master deed”) outlines:

• Homeowner responsibilities
• Association duties
• Rules of the community

It acts as the foundation document of the association.

An estoppel letter is used during a property sale to confirm:

• Outstanding balances
• Fees owed
• Financial status of the property

This ensures all amounts are settled at closing.

An easement gives someone the legal right to use part of another person’s property for a specific purpose.

Examples:

• Utility access
• Maintenance work

This is a formal notice that a property is violating association rules.

It may be recorded in public records and can affect property sales. 

• Question: What is a ‘Common Area?’
• Answer:

  A common area is shared property available for use by all members.

  Examples:

  • Parks
  • Pools
  • Hallways or entrances

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• Question: What are Ordinances?
• Answer:

  Ordinances are laws created by local governments (city or county).

  They apply to everyone in the area, including association members.