Community Association

Definition

A Community Association is a general term referring to any organization comprising property owners who collaborate to oversee and manage shared interests in a residential community. These associations are particularly prevalent in condominiums and planned unit developments (PUDs), where they hold the responsibility of managing common elements such as lobbies, pools, gyms, and other shared amenities. Furthermore, a Homeowners’ Association (HOA) is often established within subdivisions to enforce deed covenants and ensure compliance with community regulations.

Examples

Condominium Association: In a condominium complex, the community association might manage the building’s exterior, landscaping, and recreational facilities. This association collects fees from condominium owners to fund the upkeep and repair of common areas.
Homeowners’ Association (HOA): A typical example includes a neighborhood subdivision where the HOA enforces community rules, manages shared spaces like parks or pools, and organizes social events for residents. The HOA collects dues from homeowners to maintain these common areas.
Planned Unit Development (PUD) Association: In a PUD, the community association might oversee various residential and commercial properties within the development, managing shared infrastructure such as roads and social spaces.

Frequently Asked Questions (FAQs)

Q1: What is the main purpose of a Community Association?
A1: The primary purpose of a Community Association is to manage common areas, enforce community regulations, and maintain the property’s overall well-being to ensure a high-quality living environment for its members.

Q2: How is a Community Association funded?
A2: A Community Association is typically funded through fees and dues collected from property owners within the community. These funds are used for maintenance, repairs, and other communal expenses.

Q3: Who governs a Community Association?
A3: A Community Association is usually governed by a Board of Directors elected by the community’s property owners. This board is responsible for making decisions regarding the management and operation of the community.

Q4: What are deed covenants?
A4: Deed covenants are legally binding terms included in the property’s deed. They often stipulate certain restrictions or obligations that property owners must adhere to, and HOAs usually enforce these covenants.

Condominium: A form of real estate ownership where individuals own separate units in a multi-unit building but share common areas and facilities.
Homeowners’ Association (HOA): An organization in a neighborhood subdivision that enforces rules for property owners and handles common area maintenance.
Common Elements: Shared parts of a property (e.g., lobbies, pools) in multi-unit residential structures managed by a community organization.
Planned Unit Development (PUD): A designed grouping of both varied residential and commercial properties within one development or subdivision.
Deed Covenants: Legal agreements listed in property deeds outlining certain property uses and restrictions.

Online Resources

Community Associations Institute (CAI): www.caionline.org
A not-for-profit organization that offers guidance and resources for managing community associations.
National Association of Housing Cooperatives (NAHC): www.coophousing.org
Provides information and resources for housing cooperatives and community associations.
The Law of Community Association Operations: law.cornell.edu
A comprehensive guide on the legal aspects of community association management.

References

Community Associations Institute (CAI). “What is a Community Association?” Available online: www.caionline.org.
Merriam-Webster’s Dictionary. “Homeowners’ Association”. Available online: www.merriam-webster.com.

Suggested Books for Further Studies

“The Condo Bible for Americans” by Kenneth J. Einhorn and Joseph Pascals
A comprehensive guide to condominium living and managing condominium associations.
“Becoming a Green Homeowners’ Association” by Adana Barrett
A practical guide to help Community Associations adopt environmentally friendly practices.
“The Homeowner’s Association Manual” by Peter M. Dunbar and Marc W. Dunbar
An indispensable resource for anyone living in, or managing, a community association.

Real Estate Basics: Community Association Fundamentals Quiz

### What is the main purpose of a Community Association? - [ ] To facilitate property sales - [x] To manage common areas and regulations - [ ] To build new properties - [ ] To collect property taxes > **Explanation:** The primary purpose of a Community Association is to manage common areas, enforce community regulations, and maintain the property's overall condition for the benefit of the residents. ### How are Community Associations typically funded? - [ ] Government grants - [ ] Non-profit donations - [x] Fees and dues from property owners - [ ] Income from commercial activities > **Explanation:** Community Associations are usually funded through fees and dues paid by property owners, which are collected to maintain and manage the common areas and services within the community. ### Who usually governs a Community Association? - [ ] A mayor appointed by the city - [ ] A local property management company - [x] A board of directors elected by property owners - [ ] Real estate developers > **Explanation:** A Community Association is typically governed by a board of directors elected by property owners within the community. This board makes the operational and managerial decisions for the association. ### Which of the following best describes "Common Elements"? - [ ] Personal garden spaces in each unit - [x] Shared parts of the property such as lobbies and pools - [ ] Individual electricity meters - [ ] Private driveways > **Explanation:** Common Elements are shared parts of the property managed by the community association, such as lobbies, pools, and recreational facilities. ### What legal documents often outline the rules enforced by HOAs? - [ ] Property titles - [ ] Local zoning ordinances - [ ] Mortgages - [x] Deed covenants > **Explanation:** Deed covenants are legal agreements included in the property deeds. They typically outline the restrictions or obligations enforced by Homeowners’ Associations. ### What type of association might manage both residential and commercial properties in a community? - [ ] Homeowners' Association (HOA) - [ ] Condominium Association - [x] Planned Unit Development (PUD) Association - [ ] Neighborhood Watch Group > **Explanation:** A Planned Unit Development (PUD) Association oversees the management of varied residential and commercial properties within a single development and ensures the maintenance of shared infrastructure. ### In a condominium, what responsibilities typically fall to the Community Association? - [x] Managing building exteriors and shared amenities - [ ] Interior decor of individual units - [ ] Personal property sales - [ ] Leasing private spaces > **Explanation:** In a condominium setting, the Community Association is responsible for managing building exteriors, landscaping, and shared amenities such as pools and gyms, but not the interiors of individual units. ### What entity is specifically focused on helping to establish and operate Community Associations? - [ ] Internet property forums - [x] Community Associations Institute (CAI) - [ ] National Sales Registry - [ ] Consumer Protection Agency > **Explanation:** The Community Associations Institute (CAI) is a not-for-profit organization that offers resources and guidance aimed at establishing and operating community associations. ### Who typically enforces deed covenants within a subdivision? - [ ] The local government - [x] Homeowners' Association (HOA) - [ ] Federal Housing Authority (FHA) - [ ] Real estate brokers > **Explanation:** In a subdivision, deed covenants, which are specific rules and restrictions, are usually enforced by the Homeowners' Association (HOA). ### How is a board of directors for a Community Association usually selected? - [ ] By city officials - [x] By election from property owners - [ ] By real estate developers - [ ] By the local property management company > **Explanation:** The board of directors of a Community Association is generally elected by the property owners within the community. This democratic process ensures the board represents the interests of the residents.