2005 October 28
Last edit: 2006 Jun 21. See History for brief descriptions of changes and updates.
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Various names are used for property owners associations by the
different states. Frequently used terms include property owners
associations (POAs), homeowners associations (HOAs), condominium
owners associations, association of co-owners, planned unit developments (PUDs), common interest
developments (CIDs), common interest communities (CICs), community associations,
residential community associations (RCAs), common interest realty associations (CIRAs), cooperatives, and others.
(added/changed 2005 Nov 11) My preferred terms are common interest developments (CIDs) and property owners associations (POAs) which describe different aspects, and are underlined in the above paragraph. CIDs deal primarily with the land and property law aspects which are typically described in the Covenants, Conditions and Restrictions (CC&Rs) that run with the property units. POAs deal with rights and obligations of individual members, stewardship of the common interest and governance. I choose property owners associations over homeowners associations because some CIDs include both residential units and vacant lots. My second choices are community associations or residential community associations.
The continuation of this post is a discussion of the various terms and their typical usage. Included is an internet link to the most complete glossary I have been able to find.
Don Nordeen
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- History:
- 2005 Oct 28 — Initial Post
- 2005 Nov 27 — paragraphs explaining CIDs moved to separate post and linked from this post
- 2005 Nov 21 — paragraph concerning acronyms added
- 2006 Mar 8 — text and section added discussing why "community" is not an appropriate word in terms/titles for land developments and associations of owners
- 2006 Jun 21 — added section for definitions not in other glossaries and definition for ombudsman
- Links: Definitions/Glossary for CID/POA Terms at <http://swagman.typepad.com/poa_governance/2005/10/definitionsglos.html>
- Key Words: KeyWords
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Definitions/Glossary for CID/POA Terms (continued)
Common Interest Developments
Common Interest Developments (CIDs) are referred to by various
names: planned unit developments (PUDs), common interest communities
(CICs), condominiums, townhouses, cooperatives, and others. (added 2006 Mar 8) My preferred term is Common Interest Developments because it best describes what it is — a developed parcel of land, a place, a region, a territory, a geographical area, or what is often referred to as a “subdivision”. It could just be a neighborhood. Property is the general term that encompasses all of the property forms: condos, homes, cooperatives, vacant lots, ... . A community is a unified body of individuals perhaps having a common interest, such as a community of artists, or a retirement community. A real estate development is not a community, it is a land development. Identifying such land developments can be misleading.
The terminology and definitions are all related to common interest developments, which have three characteristics:
- First, real estate developments in which the owners of owners of property units have a common interest in "common areas" which are shared by all owners of property units
- Second, an "organization of owners" which has title to the common areas and in which membership by owners of property units is mandatory with ownership of a property unit
- Third, a method of governance for the organization which includes a board of directors typically defined in the Covenants, Conditions and Restrictions (CC&Rs) that run with the property unit and other governing documents, some of which are defined in state law.
The three characteristics are all defined in the governing documents for the common interest development. Some of the requirements for the governing documents are defined in state law. These documents typically include Covenants, Conditions and Restrictions (CC&Rs), Articles of Incorporation for the organization, and Bylaws for the organization. Other documents may also be involved.
The above description is repeated and expanded in Definitions for Common Interest Developments.
Organization of Owners
Various names are used for the "organization of owners" in the CID Model described above. Frequently used terms include property owners
associations (POAs, my preferred term), homeowners associations (HOAs), condominium
owners associations, association of co-owners, community associations (CAs),
residential community associations (RCAs),
and others. The American Institute of Certified Public Accountants uses the term common interest realty associations (CIRAs) which is sort of a hybrid, but is really applies an organization of owners that performs the second and third functions in the CID model. See FindLaw (real estate) for another discussion.
My preferred term of Property Owners Association is based on three realities. First, it is an association of property owners. Membership of the property owners in the association is mandatory in the covenants, conditions and restrictions (CC&Rs). Second, some of the common interest developments are subdivisions of land into vacant lots which are then sold to owners who may or may not have built a residence (home) on the lot. Third, POA is the only general term that encompasses all of the other names. It is tempting to use name with "community" since building community may be part of the common interest. However, "community" doesn't fit the ownership requirement in the CC&Rs. (added 2006 Mar 8) A community is a unified body of individuals perhaps having a common interest. That is for the residents to decide. For some CIDs, the residents may have no interest in the real estate development becoming a community.
Community is Not an Appropriate Term
(added 2006 Mar 8) As discussed above in the sections on CIDs and POAs, community is not an appropriate term for either land developments or the association of owners. The Merriam-Webster OnLine dictionary provides the following definition for community:
Main Entry: com·mu·ni·ty
Pronunciation: k&-'myü-n&-tE
Function: noun
Inflected Form(s): plural -ties
Usage: often attributive
Etymology: Middle English comunete, from Middle French comuneté, from Latin communitat-, communitas, from communis
1 : a unified body of individuals: as a : STATE, COMMONWEALTH b : the people with common interests living in a particular area; broadly : the area itself <the problems of a large community> c : an interacting population of various kinds of individuals (as species) in a common location d : a group of people with a common characteristic or interest living together within a larger society <a community of retired persons> e : a group linked by a common policy f : a body of persons or nations having a common history or common social, economic, and political interests <the international community> g : a body of persons of common and especially professional interests scattered through a larger society <the academic community>
2 : society at large
3 a : joint ownership or participation <community of goods> b : common character : LIKENESS <community of interests> c : social activity : FELLOWSHIP d : a social state or condition
Note the strong emphasis on people and the desire of people to work together for some common purpose. Some people may want to live in a land development in which the residents want to be part of a community. Others may want only to live in the land development with its CC&Rs that restrict how the individual property units can be used. Perhaps the term that best describes the location/area description for a CID is neighborhood. Note that residents in a neighborhood are merely neighbors — people who live in the same area or neighborhood.
Glossary
The best glossary I have found on the internet is by Association Times [URL is <http://www.associationtimes.com/glossary.html>.]. Typically, the Covenants, Conditions and Restrictions have a definition article that applies to the specific CID.
An extensive Real Estate Term Glossary is available from RealEstateMate. The same glossary appears to be available with customized advertising for many different local areas.
(added 2006 Jun 21) Definitions for Terms not found in the Above Glossary
Ombudsman — See Definition from Merriam-Webster online Dictionary.
Acronyms
(added 2005 Nov 21) See acronyms [URL is <http://davis-stirling.com/ds/pages/acronyms.htm>.] for meanings for commonly-used acronyms in a California resource.
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