Organizing the HOA binder
Resource center
Demystifying homeowners association jargon. Search our index of essential legal, financial, and operational terms to help keep your board in compliance.
Found 60 terms
The formal ending of a meeting by a board vote or by consensus, recorded as the final timestamp in the meeting minutes.
The board-approved financial plan predicting income (assessments) and expenditures (operating/reserves) for the upcoming fiscal year.
A mandatory yearly meeting of all association homeowners, primarily held to elect board members and review the annual budget.
A board-appointed committee that reviews and approves homeowners' applications for exterior property modifications to maintain community aesthetics.
The legal document filed with the state (typically the Secretary of State) that establishes the HOA as a legal corporate entity.
A formal modification to the HOA's bylaws, typically requiring approval by a majority vote of all association members.
A master insurance policy maintained by the HOA covering common property damage, liability, and general commercial risks.
An independent examination of the HOA's financial records conducted by a CPA to verify accuracy and internal controls.
A body of elected volunteers responsible for managing the homeowners association's finances, operations, and rule enforcement.
A collection of documents (agenda, minutes, financial reports, manager updates) sent to board members in advance of a meeting.
The rules governing the internal operation and administration of the homeowners association (e.g., board elections, voting procedures, and meetings).
The addition of a new permanent structure or facility to the common area, or a substantial upgrade, rather than simple maintenance.
A disbursement of funds from the reserve account to pay for a capital project listed in the reserve study.
The primary governing document that outlines the rules, guidelines, and restrictions of the HOA, legally binding all property owners.
Portions of the community owned collectively by all homeowners or by the HOA, maintained using association assessments.
A committee of volunteers appointed by the board to review rule violations, conduct hearings, and recommend fine actions.
A situation where a board member stands to gain personal or financial benefit from a board decision or vendor contract.
A meeting practice where routine, non-controversial reports and items are approved in a single board vote without discussion.
An insurance policy that protects volunteer board members from personal liability if they are sued for decisions made on behalf of the HOA.
The developer or builder who created the HOA and recorded the initial governing documents, retaining special control rights during the initial phases.
The state of being behind on payments for HOA assessments, fines, or other community fees.
An interest rate charged to outstanding assessment balances once they pass the grace period specified in the collection policy.
A legal easement allowing stormwater to flow across a property, which must remain clear of obstructions like fences or sheds.
A legal right granted to an entity (like utility companies or the HOA) to enter or use a portion of private property for specific purposes.
The unauthorized extension of a property structure or landscaping onto a neighbor's property or HOA common area.
A legal agreement allowing a minor property encroachment (like a fence) to remain, protecting property titles and liability.
A section of the common area designated for the sole enjoyment of one homeowner, such as an assigned parking space or patio.
A specific role filled by a board member (President, Treasurer, Secretary, Vice President) to carry out administrative tasks.
A closed-door board meeting (or segment of a meeting) reserved for sensitive matters like legal disputes, contract negotiations, or personnel issues.
Insurance coverage that protects the HOA from financial losses caused by fraud, embezzlement, or theft of funds by board members or managers.
The maximum amount an insurance company will pay out in the event of association funds theft or embezzlement by board members.
The legal and ethical obligation of board members to act in the best interests of the homeowners association as a whole, rather than personal interests.
The legal process by which the HOA takes ownership of or sells a property to satisfy a delinquent assessment debt.
A legal claim placed on a homeowner's property by the HOA due to unpaid assessments, preventing the property from being sold with a clean title.
Common areas reserved for the exclusive use of one or a subset of homeowners (e.g., balconies, patios, or assigned parking stalls).
An activity or condition on a property that substantially interferes with the quiet enjoyment or safety of neighboring residents.
A board-adopted enforcement rule defining noise limits, quiet hours, and trash policies to clarify general CC&R nuisance clauses.
State-specific statutes requiring HOA board meetings to be open to attendance and participation by all members of the association.
The HOA's primary bank account used to pay for day-to-day administrative and recurring maintenance expenses.
A proactive maintenance calendar detailing recurring service tasks (gutter cleaning, pool inspection, irrigation startup) for common areas.
A professional hired by the HOA board to oversee the daily operations, vendor contracts, financial reports, and rule enforcement.
A written authorization allowing one homeowner to cast a vote on behalf of another homeowner who cannot attend a meeting.
The minimum number of association members (or board directors) required to be present at a meeting to make the proceedings and votes legally valid.
Recurring fee (monthly, quarterly, or annual) collected from all homeowners to fund the HOA's operating expenses and reserve contributions.
The specific amount of money transferred regularly from the operating account to the reserve account to fund future capital projects.
The percentage or flat fee from assessments deposited monthly into the reserve fund to meet targets identified in the Reserve Study.
An in-depth analysis conducted by a professional to estimate the remaining useful life of HOA components and determine proper funding schedules.
A dedicated savings account maintained by the HOA to fund future long-term capital repair and replacement projects.
A formal board decision or policy statement that is voted on and recorded in the meeting minutes (e.g., adopting a collection policy).
A document detailing a project scope sent to service contractors to solicit bids and pricing proposals (e.g., for pool maintenance or roofing).
The limited legal right of the HOA board or management to enter a homeowner's private property to address emergencies or correct severe violations.
A homeowner's legal right to view and copy the HOA's financial records, board packets, minutes, and owner directories.
Specific, Board-adopted guidelines that clarify or expand upon the rules in the CC&Rs (e.g., pool hours, trash bin placement).
The practice of an HOA being run directly by volunteer board members without hiring an external professional management company.
A detached residential dwelling designed to house one family, typically subject to specific exterior maintenance standards in an HOA.
A one-time fee charged to all homeowners to fund a major capital repair or project that exceeds the association's operating and reserve balances.
An unscheduled board or member meeting called to address a single, urgent issue that cannot wait until the next regular meeting.
A package of documents detailing the HOA's rules, dues, and financial health, provided to home buyers during escrow.
An administrative fee charged by the HOA or its management firm to cover the costs of updating owner records when a property is sold.
A legally binding agreement between the HOA and an independent contractor to provide services like pool maintenance, landscaping, or legal counsel.
