Thursday, June 7, 2007

HOA Definitions

"Residents in CIDs commonly fail to understand the difference between a regime based formally on rights, such as American civil governments, and the CID regime, which is based on restrictions." Evan McKenzie, Privatopia

Common Interest Development (CID), commonly referred to as a Planned Unit Development (PUD) or a Residential Community Association (RCA). Defined as a subdivision in which some property (pool, tennis court, golf course, etc.) is jointly owned by the homeowners within the community. When there exists jointly owned property, there will usually be some sort of restrictions stating how the property can be used and usually a provision to organize a group of homeowners for the purpose of managing the commonly held property.

Homeowners Association (HOA), includes all homeowners living in a CID. Membership is usually mandatory, and homeowners become members of the association by signing certain documents at closing.

Covenants, Conditions and Restrictions (CC&R’s) commonly referred as deed restrictions or adhesion contracts. Simply put, deed restrictions impose limitations on how a particular piece of property can be used after purchase or after it has been sold.

Internal Operative is a person or group of people who control the operations of an association from within the organization. Such a person or group of people would be a community manager and/or the board of directors. External operatives, on the other hand, attempt to influence policy and practice within the association through the board of directors, managers and committees and/or through legislative lobbying efforts.

External Operative is a person or group of people who seek to influence and/or control the operations of an association from outside the organization. Such a person or group of people would be community management companies, association lawyers, business sponsors and their industry trade associations and lobbyists, the Community Associations Institute (CAI) and the American Association of Community Managers (AACM). External operatives repesent the corporation interests, not the member's interests.