HOA Glossary

The Architectural Review Committee, also known as the Architectural Control Committee (ACC), is a committee established by the HOA to review homeowner applications for exterior modifications and improvements. This includes projects such as painting, landscaping changes, fence installations, solar panels, patio covers, and room additions. The committee evaluates requests against the community's architectural guidelines and CC&Rs to maintain visual consistency and protect property values. Most governing documents require homeowners to submit modification requests in writing and receive approval before beginning work. The ARC typically includes board members and appointed homeowner volunteers with relevant expertise. Decisions should be made consistently, in writing, and within a reasonable timeframe defined in the governing documents. Homeowners who make unauthorized modifications may be required to reverse the changes at their own expense.

Assessments, commonly referred to as HOA dues, are the regular periodic charges collected from every homeowner to fund the association's operating expenses, maintenance of common areas, insurance, utilities, management fees, and contributions to the reserve fund. Assessments may be collected monthly, quarterly, or annually, depending on the community's governing documents. The amount is determined by the board of directors through the annual budgeting process and is typically allocated based on each unit's percentage interest or on an equal per-lot basis. Homeowners are legally obligated to pay assessments regardless of whether they use the community amenities or agree with the board's decisions. Failure to pay can result in late fees, loss of voting privileges, liens on the property, and in extreme cases, foreclosure.

The board of directors is the elected group of homeowners who serve as the governing body of the association. Board members have a fiduciary duty to act in the best interests of the community as a whole, not for personal benefit or on behalf of individual homeowners. Typical board roles include president, vice president, secretary, and treasurer. The board is responsible for setting and approving the annual budget, hiring and overseeing vendors and property managers, enforcing CC&Rs and community rules, maintaining common areas, and making decisions on behalf of the association. Board members are usually volunteers who serve staggered terms of one to three years. Most states require boards to hold regular open meetings and allow homeowner participation during designated comment periods.

Bylaws are the governing document that establishes the internal operating procedures of a homeowners association. They specify the number of board members, how directors are elected and removed, the frequency and notice requirements for board and membership meetings, quorum requirements, voting procedures, officer duties, and committee structures. Unlike CC&Rs which focus on property use and homeowner obligations, bylaws focus on how the association itself is organized and governed. Bylaws are subordinate to the CC&Rs and state law, meaning if there is a conflict, the CC&Rs and applicable statutes take precedence. Amending bylaws typically requires a membership vote, though the threshold is usually lower than that required for CC&R amendments.

Covenants, Conditions, and Restrictions (CC&Rs) are the primary governing document of a homeowners association, recorded with the county recorder and legally binding on all current and future property owners. CC&Rs define what homeowners can and cannot do with their properties, including architectural standards, land use restrictions, pet policies, rental limitations, and maintenance obligations. They also establish the HOA's authority to collect assessments, levy fines, and place liens on properties for unpaid dues. CC&Rs are typically created by the original developer and can only be amended by a supermajority vote of the membership. Because they run with the land, they bind every subsequent buyer regardless of whether that buyer read or agreed to them at the time of purchase.

The Colorado Common Interest Ownership Act (CCIOA), codified at Colorado Revised Statutes Section 38-33.3-101 through 38-33.3-405, is the primary statute governing common-interest communities in Colorado. Enacted in 1992 and amended numerous times since, CCIOA applies to condominiums, cooperatives, and planned communities created after July 1, 1992, with certain provisions applying retroactively to older communities. The Act establishes requirements for creating common-interest communities, defines the rights and obligations of associations and unit owners, governs board operations and elections, regulates assessment collection and financial management, and provides dispute resolution mechanisms. Notable provisions include requirements for responsible governance, restrictions on the association's ability to prohibit certain activities (such as displaying flags or using xeriscape landscaping), and procedures for addressing construction defect claims. CCIOA is overseen by the Colorado HOA Information and Resource Center, which provides education and mediation services.

Common areas are the shared spaces and elements of a community that are owned collectively by all homeowners (or by the association itself) and maintained using assessment funds. Examples include swimming pools, clubhouses, fitness centers, playgrounds, landscaped areas, parking lots, walkways, lobbies, elevators, roofs, and exterior walls. In condominium communities, common elements can also include structural components of buildings, plumbing, and electrical systems outside individual units. The declaration typically defines exactly what constitutes common area versus individual property. Some communities also have "limited common areas" or "exclusive use common areas" that are shared property but reserved for the use of specific homeowners, such as assigned parking spaces, patios, or balconies. The HOA is responsible for maintaining, repairing, and insuring common areas, funded through homeowner assessments.

While the terms are often used interchangeably, condominium associations and homeowners associations are legally distinct forms of common-interest communities. In a condominium, owners hold title to the interior airspace of their individual unit and share ownership of all common elements (structure, roof, grounds, amenities) with every other owner. The condo association is responsible for maintaining everything outside the unit walls, including the building structure itself. In a planned community governed by an HOA, owners hold title to both their home and the land it sits on, while the association owns and maintains only the designated common areas. This distinction affects insurance requirements, maintenance obligations, and the governing statutes that apply. Many states have separate laws for condominiums and planned communities. For example, California uses the Davis-Stirling Act for both, while Florida has separate statutes for condominiums (Chapter 718) and HOAs (Chapter 720).

The Davis-Stirling Common Interest Development Act (California Civil Code Sections 4000-6150) is the primary statute governing the creation, operation, and management of common-interest developments in California, including condominiums, planned developments, cooperatives, and community apartment projects. Originally enacted in 1985 and significantly reorganized in 2014, the Act covers nearly every aspect of association operations including governing document requirements, board meeting procedures, election rules, assessment collection, dispute resolution, insurance, financial disclosures, and homeowner rights. The Davis-Stirling Act is considered one of the most comprehensive HOA statutes in the United States and has influenced legislation in other states. Key provisions include mandatory reserve study requirements, secret ballot elections, restrictions on foreclosure for assessment debt, and extensive disclosure requirements for resale transactions. All California HOA board members and property managers should be familiar with its provisions.

The declaration, sometimes called the declaration of covenants or master deed, is the foundational legal document that establishes a common-interest community and creates the homeowners association. It is recorded in the county land records by the original developer before any lots are sold. The declaration defines the boundaries of common areas and individual lots, establishes the obligation to pay assessments, grants the association authority to enforce rules, and creates the framework under which the CC&Rs, bylaws, and rules and regulations operate. In condominium communities, the declaration also defines each unit's boundaries and its percentage interest in the common elements. The declaration takes legal priority over all other association documents except applicable state and federal law.

An executive session is a private portion of a board meeting from which homeowners and other non-board members are excluded. Executive sessions are permitted only for specific sensitive topics defined by state law, which commonly include pending or threatened litigation, contract negotiations, personnel matters involving employees or the management company, individual homeowner disciplinary hearings or payment delinquencies, and formation of negotiation strategies with respect to labor relations. Boards cannot use executive sessions to conduct general association business or make decisions that should be made in open session. Most states require that the board announce the general topic of the executive session before entering it and that any votes taken in executive session be recorded in the minutes of the next open meeting. Overuse of executive sessions erodes homeowner trust and may violate state open meeting requirements.

Fiduciary duty is the highest standard of care imposed by law on HOA board members, requiring them to act in good faith, with honesty, and in the best interests of the association and its members as a whole. This duty encompasses three core obligations: the duty of care (making informed decisions by reviewing relevant information), the duty of loyalty (putting the community's interests above personal interests and avoiding conflicts of interest), and the duty to act within the scope of authority granted by the governing documents and state law. Board members who breach their fiduciary duty can be held personally liable for resulting damages, although most states provide some protection through the business judgment rule, which shields directors from liability for reasonable decisions made in good faith. Purchasing directors and officers (D&O) insurance is a best practice that provides additional protection for board members.

A fine is a monetary penalty that an HOA may impose on a homeowner who violates the community's CC&Rs, rules and regulations, or architectural guidelines. Common violations include unapproved exterior modifications, parking infractions, noise complaints, failure to maintain property, and unauthorized rentals. Most states require the HOA to follow a specific enforcement process before imposing fines, which typically includes written notice of the violation, a reasonable opportunity to correct the issue (a cure period), and a hearing before the board or a violation committee where the homeowner can present their case. Fines that remain unpaid may accrue interest, result in additional penalties, and eventually lead to a lien on the property. Consistent and fair enforcement is essential for the board to maintain credibility and avoid claims of selective enforcement or discrimination.

HOA foreclosure is an extreme collection measure that allows a homeowners association to force the sale of a property to recover delinquent assessments, fines, and related charges. There are two types of HOA foreclosure: judicial foreclosure, which requires filing a lawsuit and obtaining a court order, and non-judicial foreclosure, which follows a statutory process without court involvement and is available in some states. Most states require the association to record a lien before initiating foreclosure proceedings. Because foreclosure can result in a homeowner losing their home, many states have enacted protections, such as requiring minimum delinquency thresholds before foreclosure can proceed, mandatory mediation or alternative dispute resolution, and extended notice and cure periods. In California, associations generally cannot foreclose on assessment debts below $1,800 or less than 12 months delinquent. Foreclosure should be a last resort after all other collection methods have been exhausted, and boards should always consult with legal counsel before pursuing this remedy.

Governing documents is the umbrella term for all legal instruments that create, define, and regulate a homeowners association. The hierarchy of authority, from highest to lowest, is typically: federal and state law, the declaration (or master deed), the CC&Rs, the bylaws, and then the rules and regulations adopted by the board. Each document serves a distinct purpose: the declaration creates the community and defines common areas, the CC&Rs establish property use restrictions and homeowner obligations, the bylaws govern the internal operations of the association, and the board-adopted rules address day-to-day matters. When conflicts arise between documents, the higher-authority document prevails. Homeowners are entitled to copies of all governing documents, and many states require the association to provide them to new buyers as part of the resale disclosure process.

A homeowners association (HOA) is a legal entity created to manage and govern a planned community, condominium complex, or subdivision. The HOA collects assessments (dues) from homeowners to fund maintenance of common areas, enforce community rules outlined in its governing documents, and preserve property values. Membership is typically mandatory for all property owners within the community. The association is run by a volunteer board of directors elected by homeowners, though many HOAs also hire professional property managers to handle day-to-day operations. HOAs vary widely in size, from small neighborhoods with a handful of homes to large master-planned communities with thousands of units.

A lien is a legal encumbrance placed on a homeowner's property by the HOA to secure payment of delinquent assessments, unpaid fines, or other charges authorized by the governing documents. When a homeowner fails to pay what they owe, the association can record a lien against the property with the county recorder, which attaches to the title and must be satisfied before the property can be sold or refinanced. The lien process typically begins with delinquency notices and demands for payment, followed by formal lien recording if the debt remains unpaid. In many states, HOA liens have super-priority status, meaning they take precedence over other encumbrances except property tax liens and certain first mortgage interests. If the debt remains unresolved, the association may ultimately pursue foreclosure, though this is generally considered a last resort.

Mediation and alternative dispute resolution (ADR) are processes used to resolve disputes between homeowners and their HOA without resorting to costly and time-consuming litigation. Mediation involves a neutral third-party mediator who facilitates discussion and helps both sides reach a mutually acceptable agreement but cannot impose a decision. Arbitration is a more formal process where an arbitrator hears evidence and renders a binding or non-binding decision. Many states either require or strongly encourage mediation before an HOA dispute can be taken to court. In California, parties to most HOA disputes must request and participate in a form of ADR before filing a lawsuit, and the losing party in litigation may be required to pay the prevailing party's attorney fees if they refused a reasonable ADR request. ADR can be used for a wide range of disputes including assessment collection, rule enforcement, architectural disputes, election challenges, and interpretation of governing documents. ADR is generally faster, less expensive, and less adversarial than traditional litigation.

Meeting minutes are the formal documentation of what transpired during HOA board meetings and membership meetings. They typically include the date, time, and location of the meeting, attendees and confirmation of quorum, agenda items discussed, motions made and the results of any votes, and action items assigned. Minutes serve as the legal record of the association's decisions and are essential for transparency, accountability, and legal protection. Most states require associations to make approved minutes available to homeowners upon request. Minutes should be factual and concise, recording decisions and actions rather than detailed transcripts of every comment. They are typically drafted by the board secretary or the property manager, reviewed at the following meeting, and approved with any necessary corrections. Properly maintained minutes can be critical evidence in legal disputes.

A property manager, or community association manager, is a professional hired by the HOA board to handle the daily administrative and operational tasks of running the community. Responsibilities typically include collecting assessments, coordinating maintenance and repairs, managing vendor relationships, enforcing CC&Rs, preparing financial reports, facilitating board and membership meetings, and responding to homeowner requests and complaints. Property managers can be individuals or companies that manage multiple associations. Many states require community association managers to hold a license or certification. While the property manager handles operations, the board of directors retains ultimate authority and fiduciary responsibility for all association decisions. Management contracts should clearly define the scope of services, fees, termination provisions, and liability protections.

A proxy vote is a mechanism that allows a homeowner who cannot attend a membership meeting to designate another person, called a proxy holder, to attend and vote on their behalf. Proxies are commonly used to help achieve quorum at membership meetings, especially in communities where attendance is low. The proxy must typically be in writing, signed by the homeowner, and may be limited in scope (directing the proxy holder to vote a certain way on specific issues) or general (giving the proxy holder discretion). Proxy rules vary significantly by state. Some states like California have largely replaced proxies with secret mail-in ballots for most association votes, while others still permit their widespread use. Governing documents may set additional restrictions, such as requiring proxy holders to be members of the association or limiting the number of proxies any one person can hold.

A quorum is the minimum level of participation required for an HOA meeting or vote to be considered valid and legally binding. For board meetings, a quorum is typically a majority of the seated directors. For membership meetings, the quorum is defined in the bylaws and is usually a percentage of total membership, often ranging from 20% to 50% of all owners. If a quorum is not met, the meeting may still proceed for discussion purposes but no binding votes can be taken. Many associations struggle to achieve quorum at membership meetings, which is why most governing documents allow proxies and, in some states, absentee or electronic ballots to count toward quorum. Some states allow associations to reduce their quorum requirements through a bylaws amendment if they consistently fail to achieve the original threshold.

A reserve fund is money set aside by the homeowners association to cover the anticipated cost of repairing or replacing major common area components such as roofs, parking lots, elevators, pools, and plumbing systems. Contributions to the reserve fund are included as part of regular assessments and are typically guided by a professional reserve study. A well-funded reserve reduces the likelihood that the association will need to levy special assessments for major projects. Many states require HOAs to maintain reserves or at least disclose the status of their reserves to homeowners. Industry best practices recommend that an HOA maintain a reserve fund that is at least 70% funded relative to the projected cost of all anticipated repairs. Underfunded reserves are a leading cause of financial distress in community associations and can negatively impact property values and the ability to sell units.

A reserve study is a comprehensive report prepared by a qualified professional that evaluates the physical condition and remaining useful life of an HOA's major common area components and calculates the funding necessary to repair or replace them over time. The study typically includes a component inventory listing all major assets (roofs, parking lots, pools, elevators, etc.), a condition assessment estimating when each component will need attention, a financial analysis projecting reserve fund balances and annual contribution requirements, and a funding plan recommending how much the association should set aside each year. Reserve studies should be updated every three to five years. Several states, including California, Nevada, Oregon, and Virginia, require associations to conduct periodic reserve studies. A well-executed reserve study helps boards set appropriate assessment levels, avoid special assessments, and make informed long-term financial decisions.

A special assessment is an additional, typically one-time charge imposed on homeowners to cover costs that are not funded by regular assessments or reserves. Common triggers include emergency repairs such as roof replacement after storm damage, major infrastructure projects like repaving roads, legal settlements, or shortfalls in the reserve fund. Special assessments can be financially significant, sometimes amounting to thousands of dollars per unit. Most states and governing documents require board approval and, for assessments above a certain threshold, a membership vote. In California, for example, special assessments exceeding 5% of the current annual budget generally require a majority vote of the membership. Boards should communicate transparently about the need for special assessments and may offer payment plans to reduce the financial burden on homeowners.