What Is Community Association?

August 25, 2024 4 min read Real Estate Management Property Management Homeowners' Association Condominium Planned Unit Development Deed Covenants

A community association is an organization of property owners formed to manage and oversee common interests and responsibilities within a condominium, planned unit development, or subdivision.

Community Association: General Name for Any Organization of Property Owners to Oversee Common Interests

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A Community Association is a formal organization composed of property owners within a specific area, such as a condominium, planned unit development (PUD), or subdivision. The primary purpose of these associations is to manage, oversee and maintain common areas and interests shared by the community members.

Types of Community Associations

Condominium Association

A Condominium Association is specifically designed to manage the common elements of a condo project. These common elements may include shared structures, grounds, recreational facilities, and other amenities provided for the collective use of the property owners.

Homeowners’ Association (HOA)

A Homeowners’ Association (HOA) may be established in subdivisions or PUDs. HOAs are responsible for enforcing the rules and deed covenants set forth in the governing documents, ensuring compliance with community standards, and managing common areas such as parks and recreational facilities.

Responsibilities of Community Associations

Management of Common Elements

Community associations possess the duty of managing common elements within a development. Common elements refer to areas and facilities that are owned collectively by the property owners rather than individually. Examples include:

Swimming Pools
Fitness Centers
Landscaped Areas
Roads and Pathways

Enforcement of Deed Covenants

Deed covenants, also known as restrictive covenants, are rules imposed on property owners within a community to maintain certain standards. The HOA enforces these covenants to ensure conformity and uphold property values. These might include:

Exterior appearance of homes
Use of property (residential vs. commercial)
Maintenance standards

Budget and Financial Management

Community associations typically prepare annual budgets, collect dues or assessments, and manage funds to cover expenses related to maintenance, security, and community improvements.

Special Considerations

Legal Framework

Community associations are governed by state laws, and their operations must comply with local regulations and the community’s governing documents, including the Declaration of Covenants, Conditions, and Restrictions (CC&Rs).

Dispute Resolution

These associations often provide mechanisms for resolving disputes between property owners and the association or between individual members, through mediation or arbitration processes.

Examples

Example 1: Condominium Association

In a 200-unit condominium complex, the condo association is responsible for maintaining the roofing, exterior walls, and shared plumbing systems. They also manage the community pool and clubhouse, ensuring that these facilities are in good condition and accessible to residents.

Example 2: Homeowners’ Association

In a gated community, the HOA enforces rules regulating the type of fencing permissible around properties, the height of hedges, and the type of home improvements allowed. By maintaining strict community standards, the HOA helps preserve the aesthetic appeal and property values in the community.

Historical Context

The concept of community associations emerged in the mid-20th century as suburban living expanded. This period marked significant growth in planned unit developments and condominium complexes, necessitating organized management structures to handle shared responsibilities.

Common Elements: These are parts of a property collectively owned by all members of a community association, such as lobbies, recreational areas, and building exteriors.
Deed Covenants: Legal agreements attached to property deeds that impose certain restrictions or obligations on property owners.
Planned Unit Development (PUD): A type of building development designed as a cohesive entity, integrating residential, commercial, and recreational spaces, with governance typically provided by a homeowners’ association.

FAQs

What is the primary function of a community association?

The primary function is to manage and maintain common areas, enforce community rules, and ensure harmonious living among property owners.

How are community association fees determined?

Fees are typically based on the annual budget prepared by the community association, considering the maintenance costs of common areas, reserve funds, and community services.

Can a homeowner refuse to join the community association?

In many cases, membership is mandatory for property owners within a community governed by a community association. Refusal to join can result in non-compliance with the community’s governing documents and potential legal action.

References

“The Homes Association Handbook,” Urban Land Institute
“Governing Community Associations: A Manual for Residents and Board Members,” Stephen R. Barber
“Community Associations: A Guide to Successful Management,” Clifford J. Treese

Summary

Community associations play a crucial role in managing and maintaining common interests within residential developments. Whether in a condominium or a homeowners’ association, these organizations oversee the upkeep of shared resources and enforce rules designed to enhance community living. Understanding the structure, responsibilities, and legal framework of community associations is essential for property owners and prospective buyers within such developments.

This comprehensive overview provides insights into the various aspects of community associations, highlighting their importance in maintaining organized, harmonious, and well-managed communities.