M100 100%best correct academic material
---
**Understanding Community Associations**
**Definition:**
A Community Association is a legal entity formed to manage and uphold the interests of property owners within a residential community. It focuses on the protection, enhancement, maintenanc...
A Community Association is a legal entity formed to manage and uphold the interests of property
owners within a residential community. It focuses on the protection, enhancement, maintenance, and
preservation of homes and communal areas.
**Key Features of a Community Association:**
1. **Mandatory Membership:** All property owners must join the association as part of owning
property within the community.
2. **Governing Documents:** The association and its members are governed by specific documents
that outline required actions and obligations.
3. **Assessments:** The association imposes mandatory fees on property owners to fund its operations
and maintenance.
**Lien Definition:**
A lien is a legal claim by the association on a property to ensure payment of debts or obligations. It
safeguards the community's interests by encouraging timely payment.
**Purpose:**
,The purpose of a Community Association is to handle the community, business, and governance
functions. This includes managing and improving residential developments and establishing property
rights and regulations.
**Types of Community Associations:**
1. **Planned Community:** Owners have individual lots or units and share ownership of common
areas.
2. **Condominium:** Owners have individual units and an undivided share of common elements.
3. **Cooperative:** Owners hold stock or membership in a cooperative, with occupancy rights defined
by an agreement.
**Types of Residential Community Associations:**
1. **Master or Umbrella Associations:** Oversee multiple residential associations.
2. **Mixed-Use Developments:** Combine residential, commercial, and/or industrial uses, often
marketed with “live, work, play.”
3. **"55 and Older" Communities:** At least 80% of units must be occupied by individuals aged 55 or
older.
**Legal Sources for Community Associations:**
- **Statutes and Regulations:** Federal, state, and local laws, along with court decisions.
- **Legal Documents:** Specific to each community association, binding both the association and its
members.
- **Lender Requirements:** Standards set by mortgage institutions.
- **Professional Standards:** Guidelines from bodies such as the American Institute of Certified Public
Accountants.
- **Declaration/CC&Rs/Master Deed:** Defines ownership rights and responsibilities.
- **Proprietary Lease/Occupancy Agreement:** Details rights and obligations in cooperatives.
- **Articles of Incorporation:** Establishes the association’s corporate structure.
- **By-Laws:** Regulate administration and management.
- **Resolutions:** Formal decisions by the board.
**Rules and Guidelines:**
- **Purpose:** Establish expected behaviors, limitations, and regulations.
- **Types of Resolutions:** Policy, Administrative, Special, and General.
- **Criteria for Valid Rules:** Must respect rights, be consistent with laws, and be reasonable and
enforceable.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXAMINER001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.