Condominium, townhomes and many planned developments that include single-family neighborhoods are considered community associations. This means that there are common elements on the property that can be enjoyed by all homeowners. The number and type of common elements vary and can include but are not limited to entrance signs and gates, clubhouse facilities, fitness facilities, utilities, insurance, and many other communal assets. These common elements are owned by the community and are thus maintained by all who have common ownership interest.
A homeowner’s association (commonly referred to as an HOA, COA, or POA) is a corporation registered with the state and managed by an elected board of directors. Its purpose is to govern the affairs of the community in accordance with the provisions of the governing documents. The corporation is financially supported by all members of the community. Associations also set out certain rules that all residents must follow called covenants, conditions and restrictions (CC&Rs). Membership is both automatic and mandatory and conveyed with the purchase of the property.
Most associations are registered as nonprofit corporations.
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