HOAs and Common Interest Developments

HOAs and Common Interest Developments

A homeowners association can be a nonprofit corporation or an unincorporated association created for the purpose of managing a common interest development. A common interest development is a real estate project that has common areas, in which all owners have rights, and separate ownership interests, such as individual condo units. These developments include such things as:
• A high rise condominium
• A planned unit development with separate home sites
• A planned residential development
• A community apartment project
• A stock cooperative, in which owners have long-term leases for their units
Most real estate projects require that each owner of a unit (or comparable separate interest) be a member of the homeowners' association so that assessments can be collected for each unit. Membership is usually automatic when a unit is purchased. Mandatory membership can be enforced by the association.
A homeowners' association represents the interests of separate owners in the common interest development. Associations are responsible for the following:
• Managing and maintaining the improvements and common areas
• Administering the rules and regulations governing use of recreational facilities
• Making and enforcing assessments of owners for maintenance and improvement expenses
• Making decisions regarding violations of the covenants, conditions and restrictions of the development

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