Issue link: https://www.cominghomemag.com/i/1483107
Need-to-Know Lingo TEN TERMS EVERY HOA RESIDENT SHOULD KNOW. From increased property values to exclusive amenities, a community with a homeowners' association (HOA) has a lot to offer. A non-profit organization, an HOA is set up to help run, manage, and maintain a neighborhood, building, or another collective of homes. HOA living has many benefits—but the inherent sense of community often tops the list. As an HOA member, you'll likely find that building relationships with neighbors is part of the community's DNA. The best way to make connections, get involved, and positively influence your association's future? Gaining a solid understanding of how HOAs work and the terms you'll hear at meetings, online, or in everyday conversations. When you know the basics, HOA life is as it's supposed to be—easy. Here, we're breaking down the most common HOA terms and what they mean. 1. BOARD OF DIRECTORS Every HOA is required to have a board of directors authorized to act on the community's behalf. Elected by fellow residents, board members are volunteers who help create and enforce guidelines and maintain shared spaces. Main board officer positions include the president, vice president, treasurer, and secretary. 2. GOVERNING DOCUMENTS Governing documents are the constitution, law, and regulations that explain how a community is governed. They establish how the HOA is run, set expectations for how the board functions, and define resident responsibilities. Although it differs, governing documents usually consist of the bylaws, rules and regulations, articles of incorporation, and covenants, conditions, and restrictions (CC&Rs). 3. COMMUNITY MANAGEMENT COMPANY A community management company, or HOA management company, is an organization the board hires to fulfill duties members can't carry out. These companies may support the board by enforcing the governing documents and overseeing maintenance, accounting, and other efforts. 4. COMMUNITY ASSOCIATION MANAGER The community association manager is the face of the management company. You'll likely see this person around the community, at meetings, or when paying fees. They work closely with the board to perform tasks, offer advice, and resolve issues. 5. COMMITTEE A committee is a small group of resident volunteers who assist the board by providing oversight, planning, and executing certain community functions. From welcome and social committees to landscape and budget committees, committees are a great opportunity for residents to get involved and foster relationships. 6. BOARD MEETING Board meetings are gatherings of elected leaders to conduct association business. Typically occurring monthly or quarterly, these meetings are where board members discuss issues and important topics, such as budgets, landscaping, and emergency planning. Residents are encouraged to attend meetings and voice concerns or ask questions. 7. QUORUM A quorum is the minimum number of residents needed to hold a meeting. Established to ensure all decisions reflect the majority, meeting quorum is critical whenever the board wants to facilitate official business, change rules, or vote on new officers. 8. FINE HOA fines are used to help enforce community guidelines. They're issued when a violation of rules and standards occurs. These rules can vary, but violations may include acts like ignoring lawn care, parking in undesignated areas, or disregarding noise restrictions. 9. ASSESSMENT Paid by all residents, HOA assessments, sometimes called fees, are dues collected monthly, quarterly, or yearly. These fees go towards association operations like insurance, landscaping, maintenance, and the funding of reserves. 10. RESERVE FUND A reserve fund is money set aside by the HOA for more costly large-scale projects and improvements that don't occur on a regular basis. It's the community's way to plan and prepare for inevitable updates and repairs, such as replacing a shared roof or resurfacing shared roads and driveways.