What is a Community Association?

Community associations help people take care of their homes and property. They are created by the owners of a particular area who join together to work for the common good and benefit of their community.

All community associations have three things in common:

  1. Everyone who owns a home in the community is automatically a member of the association.

  2. There are documents that say everyone in the community must follow the rules of the association.

  3. People who own homes in the community have to pay money to help support and run the association.

There are three general kinds of community associations:

  • Planned Community

  • Condominium

  • Cooperative

Planned Communities (HOAs, POAs, PUDs, Owners and Townhome Associations):

  • Planned communities are the most common type of community association, making up 52-55% of all associations.

  • Each purchaser owns a lot/unit and residential dwelling as well as mandatory membership in an association which owns the common area. 

  • Common areas may include grounds, recreational areas and roads but usually not walls or roofs due to detached housing structures. 

  • Types of planned communities include townhouse developments, single family home developments, planned unit developments, cluster developments etc.

Condominium

  • Condominiums are the second most common type of community association, with an estimated 38–42% of all associations being condominiums.

  • Owners typically only own the air space in a condominium and hold a shared interest in the common area, which is usually contained within a building. The fractional share may be equal or based on square footage or other systems. 

  • A distinguishing factor between other types of community associations and condominiums is that owners generally own some common area as co-owners. 

  • Condominiums come in various forms such as apartment buildings, mobile home parks, boat slips, and parking garages depending on state law.

Cooperative

  • Cooperatives are the least common type of community association, making up around 5-7% of all associations. 

  • Owners in a cooperative own a shared interest in the corporation and exclusive rights to occupy their apartment. 

  • Common areas may include hallways, elevators, roofs, parking areas and laundry facilities. 

  • Members of cooperatives are more akin to shareholders than tenants as they own all property including units within the association.  

  • Multiple types of associations can be grouped together into master associations or umbrella communities known as master planned communities; if multiple uses are included these may be referred to as mixed use associations

While less common there are other types of communities as well:

  • Master (umbrella) Association: More than one residential community association

  • Mixed Used Development: Mix of residential and commercial use

  • "55 and Older" Communities: Requires one resident to be at least 55+ in age and occupy at least 80% of the livable units

Community Associations Serve A Great Purpose

Community associations serve a great purpose in helping to create vibrant and connected neighborhoods. They bring people together to share ideas, collaborate on projects, and work together to strengthen the community. Community associations provide opportunities for making new friends, finding solutions to local problems, and promoting civic engagement.

Community associations must provide for the business, operations, and governance of the neighborhood. When managed correctly, these associations can be successful in maintaining the integrity of their communities. The benefits that come from a strong and well-run community association are endless and can help to make a neighborhood thrive for years to come.

RowCal makes it easier for community associations to stay organized. It provides an online platform to manage HOA finances, update HOA documents, communicate with members and create a strong sense of community. RowCal helps ensure that your HOA is running smoothly and efficiently, while also giving members access to the information they need.

 

With RowCal's HOA management services, associations can focus on being a source of pride for their community, rather than worrying about the tedious HOA tasks. HOA members can enjoy living in a safe and well-maintained HOA community, knowing that their HOA management team is taking care of the day-to-day HOA business.

Danielle McDonough