Maintenance
Useful Life
Expected lifespan of a building component before it needs replacement. Used in reserve studies to project future costs.
Educational Resource
HOA GlossaryProperty Management Terms Defined
Learn the terminology used in HOA, condo, co-op, and apartment management. From ARC requests to reserve studies, we've got you covered.
Compliance
Violation
Breach of HOA rules, CC&Rs, or bylaws. Common violations include unauthorized modifications, noise complaints, and parking infractions.
Financial
Assessment
Regular fees paid by homeowners to the HOA to cover common area maintenance, insurance, reserves, and other community expenses. Can be monthly, quarterly, or annual.
Delinquency
When a homeowner falls behind on HOA assessment payments. HOAs typically have collection policies including late fees, liens, and potentially foreclosure.
Late Fee
Penalty charged when HOA assessments are not paid by the due date. Typically a flat amount or percentage of the overdue balance.
Operating Fund
HOA account used for day-to-day expenses like utilities, landscaping, management fees, and routine maintenance. Funded by regular assessments.
Percent Funded
Measure of reserve fund health, calculated as actual reserves divided by fully funded balance. 70%+ is generally considered healthy; under 30% is concerning.
Reserve Fund
Savings account for major repairs and replacements of common elements like roofs, elevators, paving, and pools. Funded through a portion of regular assessments.
Reserve Study
Professional analysis of an HOA's physical components and funding needs. Identifies when major repairs will be needed and how much to save annually.
Special Assessment
One-time or short-term fee charged to homeowners for unexpected expenses or projects not covered by the regular budget or reserves.
Governance
ARC (Architectural Review Committee)
A committee within an HOA responsible for reviewing and approving exterior modifications, landscaping changes, and other alterations to properties. Also known as ACC (Architectural Control Committee) or DRC (Design Review Committee).
Board of Directors
Elected volunteers who govern the HOA, make financial decisions, enforce rules, and oversee management. Typically includes President, Vice President, Treasurer, and Secretary positions.
Proxy
Written authorization allowing one person to vote on behalf of another at HOA meetings. Used when members cannot attend in person.
Quorum
Minimum number of members (or their proxies) required to be present to conduct official HOA business at a meeting. Typically defined in bylaws.
Insurance
Master Insurance Policy
Insurance policy purchased by the HOA covering common areas and, depending on policy type, may include interior walls and fixtures ("walls-in" vs "walls-out" coverage).
Legal
CC&Rs (Covenants, Conditions & Restrictions)
Legal documents that establish rules governing properties within an HOA. CC&Rs are recorded with the county and run with the land, binding all current and future owners.
Fiduciary Duty
Legal obligation of board members to act in the best interests of the HOA and its members. Includes duty of care, duty of loyalty, and duty to act within authority.
Lien
A legal claim against a property for unpaid debts. HOAs can place liens on units for unpaid assessments, which must be satisfied before the property can be sold.
Property
Co-operative (Co-op)
A form of property ownership where residents own shares in a corporation that owns the building, rather than owning their individual units. Common in New York City.
Common Areas
Shared spaces owned collectively by all HOA members, such as lobbies, hallways, pools, gyms, parking lots, landscaping, and recreational facilities.
Condominium (Condo)
A form of property ownership where individuals own their unit interiors while sharing ownership of common areas with other unit owners through an HOA.
Authoritative External Resources
Community Associations Institute (CAI)
Leading professional organization for HOA governance best practices.
HUD Condominium Approvals
Federal requirements for FHA-approved condominium projects.
Association Reserves
National reserve study provider with educational resources.
Nolo HOA Legal Encyclopedia
Plain-language legal information for HOA members and boards.
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