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Community Association
Legal entity in which the owners enjoy the protection, enhancement, maintenance, and preservation
of their homes and property
Three defining characteristics of Community Association
Mandatory Membership, Mutually Binding Documents, and Lien-Based Assessments
Mandatory Membership
Membership in the community association is mandatory and automatic for all owners
Mutually Binding Documents
Certain association governing documents bind the owner and the association to each other through
mandated actions
Lien-Based Assessments
Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate
and maintain the community association
Three types of Community Associations
Planned Community, Condominium, Cooperative
Planned Community
The most common type of community association. Owner owns his/her lot and/or living unit.
Community owns any common area for use and benefit of lot owners
Condominium
An individual owns: (1) His/Her living unit and (2) An undivided interest in the common elements of
the community. *Each owner owns a percentage of the common elements
Cooperative
An individual owns (1) owns stock or membership in the cooperative, (2) holds a proprietary lease or
occupancy agreement for his/her living unit. *another name is Stock Cooperative
Proprietary lease or occupancy agreement
The member or stockholders rights and obligations in relation to the living unit
Specialized community associations
Master or Umbrella association, mixed-use development, 55 and older communities
Master or umbrella associations
Consist of more than one residential community association
Mixed-use development
, Consists of a mixture of residential and commercial and/or industrial uses group together. "Live.
Work. Play"
55 and older communities
Must have one person who is 55 years of age or older living in at least 80% of its occupied units
Sources of legal obligation
(1) Federal, state and local statutes, regulations and case law (2) legal documents unique to the
community association that find the association in owners (3) lender requirements (4) Standard set
professional bodies
Federal laws
(1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
EEOC
The Equal Employment Opportunity Commission.
Prohibits discrimination in hiring promotion dismissal etc.
FLSA
The Fair Labor Standards Act dictates standards for the basic minimum wage and overtime pay
FMLA
The Family Medical Leave Act provides for unpaid leave for various medical issues
FICA
The Federal Insurance Contributions Act governs employee and employer contributions to Social
Security
OSHA
The Occupational Safety and Health Administration outlines safety guidelines for employees
Declarations, CC&Rs, or Master Deeds
(1) Establish the chain of title and rights of ownership for each piece of real estate, (2) They set up the
charter of the community association and typically detail voting rights remembers using rights of
common property and limits on assessment fees, (3) They legally obligate purchasers of homes or
units to follow them and become binding on all owners once the developer sells the first homes or
unit, (4) All three terms are sometimes used interchangeably
Proprietary lease for occupancy agreement
Defines the member or stockholders rights and obligations in relation to the living unit in a
cooperative
Articles of incorporation
Documents that establish the corporation, if the association is incorporated
Community Association
Legal entity in which the owners enjoy the protection, enhancement, maintenance, and preservation
of their homes and property
Three defining characteristics of Community Association
Mandatory Membership, Mutually Binding Documents, and Lien-Based Assessments
Mandatory Membership
Membership in the community association is mandatory and automatic for all owners
Mutually Binding Documents
Certain association governing documents bind the owner and the association to each other through
mandated actions
Lien-Based Assessments
Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate
and maintain the community association
Three types of Community Associations
Planned Community, Condominium, Cooperative
Planned Community
The most common type of community association. Owner owns his/her lot and/or living unit.
Community owns any common area for use and benefit of lot owners
Condominium
An individual owns: (1) His/Her living unit and (2) An undivided interest in the common elements of
the community. *Each owner owns a percentage of the common elements
Cooperative
An individual owns (1) owns stock or membership in the cooperative, (2) holds a proprietary lease or
occupancy agreement for his/her living unit. *another name is Stock Cooperative
Proprietary lease or occupancy agreement
The member or stockholders rights and obligations in relation to the living unit
Specialized community associations
Master or Umbrella association, mixed-use development, 55 and older communities
Master or umbrella associations
Consist of more than one residential community association
Mixed-use development
, Consists of a mixture of residential and commercial and/or industrial uses group together. "Live.
Work. Play"
55 and older communities
Must have one person who is 55 years of age or older living in at least 80% of its occupied units
Sources of legal obligation
(1) Federal, state and local statutes, regulations and case law (2) legal documents unique to the
community association that find the association in owners (3) lender requirements (4) Standard set
professional bodies
Federal laws
(1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
EEOC
The Equal Employment Opportunity Commission.
Prohibits discrimination in hiring promotion dismissal etc.
FLSA
The Fair Labor Standards Act dictates standards for the basic minimum wage and overtime pay
FMLA
The Family Medical Leave Act provides for unpaid leave for various medical issues
FICA
The Federal Insurance Contributions Act governs employee and employer contributions to Social
Security
OSHA
The Occupational Safety and Health Administration outlines safety guidelines for employees
Declarations, CC&Rs, or Master Deeds
(1) Establish the chain of title and rights of ownership for each piece of real estate, (2) They set up the
charter of the community association and typically detail voting rights remembers using rights of
common property and limits on assessment fees, (3) They legally obligate purchasers of homes or
units to follow them and become binding on all owners once the developer sells the first homes or
unit, (4) All three terms are sometimes used interchangeably
Proprietary lease for occupancy agreement
Defines the member or stockholders rights and obligations in relation to the living unit in a
cooperative
Articles of incorporation
Documents that establish the corporation, if the association is incorporated
