Condominium, townhomes and many planned developments that include single-family home neighborhoods are considered associations. This means that there are common elements to the property enjoyed by all homeowners living there. The number and type of common elements vary and can include but are not limited to entrance signs and gates, clubhouse facilities, tennis and swimming facilities, streetlights, sidewalks, service 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, and 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 provision of the governing legal documents. The corporation is financially supported by all members of the neighborhood. 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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