Trying to figure out how an HOA is run can seem complicated but once it’s explained it is pretty straightforward and makes a lot of sense.
What is an HOA Classified As?
Most Homeowners Associations (HOAs) are self-governing, non-profit corporations. The association’s Board of Directors is an all-volunteer group elected by the residents of the association (or, in new communities, appointed by the developer).
Typically, newer associations are incorporated as non-profit mutual benefit corporations. The association’s Board of Directors is mandated to enforce the rules, which are spelled out in a handful of papers called the Governing Documents.
Governing Documents of HOAs Usually Include:
- CC&RS (Covenants, Conditions & Restrictions), which dictate the powers and
duties of the corporation and regulate both the physical characteristics of the
development and the lifestyles of its residents.
- The Bylaws, which dictate the powers and duties of the Board of Directors (when
meetings occur, how Board members are elected, etc.).
- The Articles of Incorporation, which is a one-page document that must be
filed with the Secretary of State.
We’re Here to Help
Should you have any questions at all regarding the structure of your HOA, or if you aren’t sure if your HOA is set up correctly, don’t hesitate to reach out to us here at Your Community Manager. We’ll be happy to help.