Whether you live in a community with an HOA or you’re on the HOA board, there are some terms that you should know. The terminology will come up frequently and may even be an obligation you have to uphold, so familiarize yourself with these common but important homeowner’s association phrases:
- Alteration of Improvements – Modifications made to the exterior of the property. This can include adding solar panels, fencing, landscaping, balconies, etc. Owners may need to get approval before they go ahead with modifications so that the HOA board can make sure the changes are in accordance with the rules and regulations.
- Assessments – Dues or fees that all members must pay. The assessments may be broken up into types like regular assessments, maintenance assessments, extraordinary assessments, or special Assessments. They go to paying for things like street lights, entry gates, recreational centers and facilities, main office utilities, community events, etc.
- Bylaws – The set of rules or guidelines related to the operation of an HOA Board. They generally include items like the guidelines on voting rights, meetings, notices, etc.
- Covenants, Conditions & Restrictions (CC&Rs or Declaration) – Outlined obligations and guidelines that the HOA and the residents have to follow. It will have what you can and can’t do with your property, making it an important document to be familiar with.
- Fiduciary Duty – The ethical and moral obligations the HOA board has to make good decisions on behalf of the community. The board must set aside personal relationships and financial circumstances when making decisions and acting on bylaws.
- Quorum – Minimum number of residents that must be in attendance in order to have a meeting.
Make sure you learn these HOA terms and have them in the back of your mind during the next meeting. If you need help learning about HOAs or managing your property, contact Prism Realty Management. Learn about who we are, the services we offer, and our process, then give us a call at 512-676-5842.