HOA Terms, Plain English

An accounting method that records income and expenses when they're earned or incurred, not when cash actually changes hands.

The once-a-year membership meeting where owners typically elect the board, review finances, and vote on major matters.

A homeowner's formal application to make an exterior change to their property, submitted to the HOA for approval.

The committee that reviews owners' requests to modify their property and ensures changes meet community standards.

The document filed with the state that legally creates the HOA as a corporation, usually nonprofit.

A meeting of the HOA's directors to make decisions and conduct the association's business, usually open to members.

The elected group of volunteer homeowners responsible for governing an HOA, making decisions, and managing its finances and affairs.

A formal, documented decision or policy adopted by the board through a vote, creating an official record of the action.

The internal rulebook that governs how an HOA operates — how the board is elected, how meetings run, and how decisions are made.

A significant addition or upgrade to community property that adds value or extends its life — distinct from routine repairs.

Funds an HOA sets aside for major future repairs and replacements of common-area assets, like roofs, roads, and pools.

The organized list of financial categories an HOA uses to record and report its income and expenses.

The shared property an HOA owns and maintains for all members — such as roads, pools, clubhouses, landscaping, and building exteriors.

The legal umbrella term for any community where owners share ownership of, and responsibility for, common areas — including HOAs, COAs, and POAs.

A professional (often through a management company) hired to handle an HOA's day-to-day operations on behalf of the board.

An association that governs a condominium, where owners hold their individual units plus a shared interest in the building's common elements.

The recorded legal document that sets the rules, restrictions, and obligations binding every owner in an HOA community.

The developer or original owner who creates an HOA and records its CC&Rs, controlling the community until it transitions to homeowner control.

Maintenance that's postponed to save money now, usually leading to bigger, costlier repairs later.

An owner's failure to pay HOA dues or assessments by the due date, triggering the association's collections process.

Insurance that protects HOA board members personally from claims arising out of their decisions and service on the board.

The instrument members use to cast their vote in an HOA election, whether on paper or securely online.

An official statement from an HOA, usually requested during a home sale, certifying what an owner owes and the account's status.

A closed portion of a board meeting reserved for sensitive matters like legal issues, personnel, contracts, or delinquent accounts.

Coverage (also called crime insurance) that protects HOA funds against theft, fraud, or embezzlement by those who handle the money.

The legal obligation board members have to act in the association's best interest — with care, loyalty, and good faith.

A U.S. federal tax form many HOAs use to file their income tax return under rules specific to homeowners associations.

The full set of documents that establish and govern an HOA — typically the articles of incorporation, CC&Rs, bylaws, and adopted rules.

A provision allowing a pre-existing condition to continue even after a new rule would otherwise prohibit it.

The regular fees owners pay to fund an HOA's operations, maintenance, and reserves — usually monthly, quarterly, or annually.

A legal process by which an HOA can force the sale of a property to collect unpaid assessments secured by a lien.

A legal claim an HOA can place on an owner's property for unpaid dues or assessments, securing the debt against the home.

The handover of control of an HOA from the developer to a homeowner-elected board once enough homes are sold.

A private organization that governs a residential community, enforces its rules, maintains shared areas, and collects dues from its members.

Shared property reserved for the use of specific owners rather than the whole community — like an assigned parking space, balcony, or patio.

The HOA's primary insurance policy covering common areas and shared property, distinct from owners' individual policies.

The official written record of what a board or membership meeting decided — motions, votes, and actions taken.

Advance notification to members of a meeting or action, sent within the timeframe and method required by the governing documents or law.

A CC&R provision prohibiting activities that unreasonably disturb or interfere with neighbors' enjoyment of their property.

Rules — set by state law or governing documents — requiring most HOA board meetings to be open to members, with proper notice.

The annual plan for an HOA's recurring income and expenses, used to set dues and guide day-to-day spending.

An association governing a community that may include a mix of property types — often broader than a standard HOA, sometimes covering commercial parcels too.

A method allowing a member who can't attend a meeting to authorize someone else to represent their vote and count toward quorum.

The minimum number of members who must participate for a meeting's votes and business to be valid.

The recurring, budgeted assessment owners pay on a set schedule — the formal term for ongoing HOA dues.

A professional assessment of an HOA's major assets that projects when each will need replacement and how much to save each year.

A written, board-adopted policy defining how the HOA enforces its rules — notices, fines, hearings, and timelines.

A community whose volunteer board runs day-to-day operations directly, without hiring a management company.

A one-time charge an HOA levies on owners, beyond regular dues, to cover a large or unexpected cost — usually a major repair or a shortfall in reserves.

An approved exception to the community's standard rules, granting a specific owner permission to deviate from them.

A breach of the community's rules or CC&Rs by an owner, which the HOA addresses through its enforcement process.