The HOA glossary
CC&Rs, special assessments, ARC approvals, estoppel certificates — every term a first-time board member or new homeowner runs into, explained without the legalese.
Governance
Amenity Rules
Amenity rules govern use of shared facilities such as pools, gyms, clubhouses, and courts — including hours, guest limits, reservations, and suspension for delinquency.
Annual Meeting
The annual meeting is the yearly gathering of all owners where directors are elected and the association's finances and plans are presented.
Articles of Incorporation
Articles of incorporation are the filing with the state that legally creates the HOA as a nonprofit corporation.
Board of Directors
The board of directors is the group of owners elected to govern the association, set the budget, enforce the documents, and hire vendors on behalf of all members.
Bylaws
Bylaws are the association's internal operating manual — they govern how the board is elected, how meetings run, and how the corporation makes decisions.
CC&RsCovenants, Conditions & Restrictions
CC&Rs are the recorded legal document that sets the binding rules for what owners can and cannot do with their property in a community association.
Declaration
The declaration is the founding recorded instrument that creates the association, defines the property it covers, and imposes the covenants on every lot or unit.
Developer TurnoverTransition
Turnover is the point at which control of the association passes from the developer to a board elected by the homeowners.
Governing Documents
Governing documents are the full set of records that control an association: the declaration/CC&Rs, bylaws, articles of incorporation, plat, and board-adopted rules.
Management Company
A management company is the professional firm an association hires to handle administration, accounting, vendor coordination, and resident communication.
Meeting Minutes
Minutes are the official written record of what a board or membership meeting decided, and they are generally available to owners on request.
Proxy
A proxy is a written authorization letting another person attend and vote on an owner's behalf, commonly used to reach quorum at annual meetings.
Quorum
Quorum is the minimum participation required for a meeting's votes to count, set as a percentage of owners for member meetings or directors for board meetings.
Rental RestrictionsLeasing caps
Rental restrictions are covenant provisions limiting how owners may lease their homes — through caps, minimum lease terms, registration requirements, or short-term rental bans.
Rules and RegulationsOperating rules
Rules and regulations are board-adopted policies that add day-to-day detail to the CC&Rs, such as pool hours, guest parking limits, and trash placement times.
Money
AssessmentHOA dues
An assessment is the mandatory payment each owner owes the association to fund shared expenses, usually billed monthly, quarterly, or annually.
Audit, Review, and Compilation
These are three levels of independent CPA examination of association finances, from a full audit down to a basic compilation of the numbers provided.
Delinquency
Delinquency is an owner's unpaid assessment balance past its due date, triggering the association's collection policy.
Fines
Fines are monetary penalties an association may impose for documented violations, when its documents and state law authorize them.
Fiscal Year
The fiscal year is the twelve-month accounting period the association uses for budgeting, financial reporting, and audits.
Lien
A lien is a recorded legal claim against an owner's property securing unpaid assessments, fines, interest, and collection costs.
Master Insurance Policy
The master policy is the association's insurance covering common property and, depending on its type, some portion of individual units.
Operating Budget
The operating budget is the association's annual plan of expected income and day-to-day expenses, and the basis for setting assessments.
Reserve Fund
The reserve fund is savings the association sets aside for predictable major repairs and replacements, kept separate from the operating account.
Reserve Study
A reserve study is a professional analysis of the association's major components, their remaining life, replacement cost, and the funding needed to pay for them.
Special Assessment
A special assessment is a one-time charge levied on owners to cover a large expense that the regular budget and reserves cannot absorb.
Transfer FeeCapital contribution
A transfer fee is a one-time charge collected at closing when a property changes hands, covering the administrative cost of updating association records.
Property & Architecture
ARCArchitectural Review Committee
The ARC is the committee that reviews and approves owner requests to change the exterior of a home or lot, applying the community's architectural standards.
Architectural GuidelinesDesign standards
Architectural guidelines are the published standards the ARC applies — approved colors, materials, setbacks, fence heights, and submission requirements.
Common AreaCommon elements
Common area is the property owned or maintained by the association for the shared use of all owners — streets, pools, clubhouses, landscaping, and open space.
Limited Common Element
A limited common element is common property reserved for the exclusive use of one or a few units, such as an assigned parking space, balcony, or patio.
Maintenance Responsibility
Maintenance responsibility is the allocation, defined in the governing documents, of which repairs the association pays for and which the owner pays for.
Variance
A variance is a formal exception granted by the board or ARC allowing an owner to deviate from a stated architectural or use restriction.
Process & Legal
Enforcement
Enforcement is the association's process for obtaining compliance with the governing documents, ranging from notices and fines to suspension of privileges and legal action.
Estoppel CertificateStatus letter / dues statement
An estoppel certificate is an association-issued statement of what an owner currently owes, provided at closing so a buyer knows the exact financial status of the property.
Fiduciary Duty
Fiduciary duty is a board member's legal obligation to act in the association's best interest with care, loyalty, and good faith rather than personal advantage.
HOA Foreclosure
HOA foreclosure is the legal process by which an association forces the sale of a property to satisfy an unpaid assessment lien.
Open Meeting Requirements
Open meeting requirements are state-law rules obligating boards to conduct association business at noticed meetings that owners may attend, with limited exceptions.
Reasonable Accommodation
A reasonable accommodation is a change to a rule, policy, or practice that an association must make so a person with a disability can fully use their home.
Records RequestBooks and records inspection
A records request is an owner's statutory right to inspect or copy association records such as financials, contracts, minutes, and governing documents.
Resale PackageResale disclosure / condo docs
A resale package is the bundle of association documents a seller must provide a buyer, typically including the CC&Rs, bylaws, rules, budget, financials, minutes, and an estoppel certificate.
Selective Enforcement
Selective enforcement is enforcing a rule against some owners while ignoring identical violations by others — a common and effective defense against association action.
Violation Notice
A violation notice is written notification to an owner that a condition or behavior appears to breach the governing documents, starting the compliance process.
Your residents shouldn't need a glossary
Melo answers questions from your community's own documents — in plain language, with a citation to the exact page.