HOA Glossary & Jargon Buster

The document filed with the state that legally creates the homeowners association as a corporation.

A required yearly gathering of association members where the board presents financial reports, discusses community matters, and conducts elections for open board seats.

A list of topics or items to be discussed and acted upon at a board or member meeting, distributed in advance to provide transparency and structure.

A regular charge levied on each homeowner to fund the operations and maintenance of the common areas and shared facilities of a homeowners association.

An independent examination of the association's financial records and statements conducted by a certified public accountant (CPA).

Money owed to the association by homeowners, typically for unpaid assessments, fines, reimbursement charges, or other amounts authorized by the governing documents.

Money the association owes to vendors, contractors, and service providers for goods and services received but not yet paid for.

The process of spreading a cost over a period of time through scheduled payments of principal and interest.

A formal change or modification to the governing documents.

A dispute resolution process where a neutral arbitrator hears evidence and arguments from both sides and issues a binding or non-binding decision.

Methods of resolving disputes outside of traditional court litigation, including mediation, arbitration, and negotiation.

The costs of hiring an attorney to represent the association or a homeowner in a legal matter.

A federal civil rights law that prohibits discrimination against individuals with disabilities.

The process by which a homeowner submits proposed exterior modifications to the architectural review committee for approval before beginning work.

Written standards that specify the types of exterior modifications allowed in the community and the design criteria they must meet.

The steps a homeowner must follow to obtain authorization for an exterior modification or other action requiring association consent.

A committee responsible for reviewing and approving or denying homeowner requests for exterior modifications.

AB 3182, effective January 1, 2021, is a California law that significantly restricts HOA authority to impose rental restrictions in common interest developments.

AB 1101, signed into law in 2017 and codified primarily in Business and Professions Code Sections 11500-11516, established comprehensive regulatory requirements for community association managers and management companies operating in California.

An Accessory Dwelling Unit (ADU) is a secondary residential unit built on an existing single-family or multifamily residential lot.

Alternative Dispute Resolution (ADR) under the California Davis-Stirling Act refers to the formal mediation and arbitration processes established by Civil Code Sections 5925 through 5965 as a mandatory pre-litigation step for disputes between HOA associations and their members.

California Civil Code Section 5605 places specific limits on an HOA board's authority to increase assessments without a vote of the membership.

Documents and information that the association is required to provide to homeowners on an annual basis.

Rules that limit residency based on the age of occupants.

Systems and procedures that regulate who can enter the community and its facilities.

The elected group of homeowners responsible for managing the affairs of a homeowners association.

The internal rules that govern how a homeowners association operates as an organization.

A meeting of the association's board of directors where official business is conducted.

A reserve funding strategy where the association contributes just enough to the reserve fund to ensure it never reaches a zero balance over the projection period (typically 20 to 30 years).

Assessment income that the association has been unable to collect and considers unlikely to be recovered.

A legal claim that a board member failed to fulfill their obligations of care, loyalty, or good faith to the association.

The physical barrier between the interior and exterior of a building, including the roof, exterior walls, windows, doors, and foundation.

An elevated platform projecting from the exterior of a building, typically accessible from an individual unit.

Covenants, Conditions, and Restrictions — the primary governing document recorded against the property that establishes the rights and obligations of homeowners within a common interest development.

A situation where a board member has a personal, financial, or familial interest that could improperly influence — or could reasonably appear to influence — their decision-making on behalf of the association.

A voting method where each member receives a number of votes equal to the number of board seats being filled and may distribute those votes among candidates in any combination — including casting all of their votes for a single candidate.

A written document adopted by the board that outlines the procedures the association follows when homeowners fail to pay assessments or other charges.

A significant expenditure for the acquisition, improvement, or replacement of a major common area component with a useful life extending beyond one year.

The movement of money into and out of the association over a period of time.

A detailed list of all major common area components that the association is responsible for maintaining, repairing, or replacing.

A portion of the operating or reserve budget set aside to cover unexpected expenses that were not anticipated during the budgeting process.

A binding promise or agreement contained in the declaration that requires or prohibits certain actions by homeowners.

Property owned and maintained by the association for the shared use and benefit of all members.

A recorded document that contains a description of the condominium project, including a survey map showing the layout of units and common areas, unit dimensions, and the location of common elements.

The structural and shared portions of a condominium or community that are owned collectively by all unit owners and maintained by the association.

A community building in the common area used for meetings, social events, and recreational activities.

The timeframe given to a homeowner to correct a violation before further enforcement action is taken.

The requirement for an association to maintain its legal status as a corporation by filing periodic reports and paying fees to the state in which it is incorporated.

Civil Code Section 4000 is the opening section of the Davis-Stirling Common Interest Development Act, the comprehensive statute that governs all homeowners associations in California.

A Common Interest Development (CID) is the California legal classification, defined in Civil Code Section 4100, for any residential development in which individual owners share ownership interests in common areas and are required to be members of a homeowners association.

CID is the standard abbreviation for Common Interest Development, the California legal classification defined in Civil Code Section 4100 for any residential community where owners share ownership interests in common areas and are required to be members of a homeowners association.

A condominium project is one of the four types of common interest developments recognized under California Civil Code Section 4125.

A community apartment project is one of the four types of common interest developments recognized under California Civil Code Section 4105.

CLAD refers to the Common Interest Development Bureau (formerly known by the informal acronym CLAD) within the California Department of Real Estate (DRE), which regulates the creation and initial sale of common interest developments in the state.

The individual, typically employed by a management company, assigned to oversee the operations of a specific community association.

A legally binding agreement between the association and a vendor, management company, or other party that defines the terms of a service or project.

Guidelines adopted by the board that establish how the association communicates with homeowners.

An internet presence maintained by the association to provide information to homeowners and the public.

The obligation of board members to make informed, reasoned decisions by reviewing relevant information before voting and exercising the level of care that an ordinarily prudent person would use in similar circumstances.

The obligation of board members to put the interests of the association ahead of their own personal, financial, or familial interests when making governance decisions.

The period during which the developer (declarant) retains the right to appoint or control the board of directors of a newly created homeowners association.

The failure of a homeowner to pay assessments or other charges by the due date.

The accounting method of systematically allocating the cost of a tangible asset over its estimated useful life.

The primary legal document recorded with the county that creates the common interest development and establishes the rights and obligations of the association and its members.

A legal document that transfers ownership of real property from one party to another.

The act of applying rules, policies, or standards unequally based on a protected characteristic such as race, religion, national origin, familial status, or disability.

The principle that homeowners are entitled to fair procedures before the association takes adverse action against them, such as imposing fines or suspending privileges.

The Davis-Stirling Common Interest Development Act is the comprehensive California statute governing all common interest developments (CIDs), codified in Civil Code Sections 4000 through 6150.

The Davis-Stirling Election Rules, codified in Civil Code Sections 5100 through 5145, establish mandatory procedures that every California HOA must follow when conducting board elections and certain member votes (including assessments, amendments to governing documents, and grants of exclusive use of common area).

A documented strategy that outlines how the association will respond to and recover from major emergencies or natural disasters.

A closed portion of a board meeting from which non-board members are excluded to discuss sensitive or confidential matters.

The formal process by which association members vote to select board members and decide on other matters requiring member approval, such as amendments to governing documents, special assessments above statutory thresholds, and grants of exclusive use of common area.

A legal right to use another party property for a specific purpose.

Any claim, lien, easement, or restriction that affects the title to a property.

A California-specific term for common area that is designated for the exclusive use of a particular homeowner.

The wiring, panels, outlets, and fixtures that distribute electrical power throughout a building and its common areas.

A mechanical conveyance system in multi-story buildings that is a common element maintained by the association.

The protective and decorative coating applied to the exterior surfaces of buildings in the community.

An animal that provides therapeutic benefit to a person with a mental health disability through companionship.

California Civil Code Section 4745 establishes the right of homeowners in common interest developments to install electric vehicle charging stations in their designated parking spaces, and strictly limits an HOA's ability to prohibit or unreasonably restrict such installations.

The association plans and procedures for responding to natural disasters, fires, medical emergencies, security threats, and other crisis situations.

The legal obligation of board members to act in the best interest of the association and its members when managing association affairs and funds.

Reports that summarize the financial position and performance of the association.

The total amount of money held in an association's fund at a given point in time, as reported on the balance sheet.

A reserve funding strategy where the association aims to maintain reserve fund balances at 100% of the estimated deterioration of all reserve components at any given time.

The structural base of a building that transfers its load to the ground.

A barrier structure that defines property boundaries, provides privacy, or enhances security.

Federal and state laws that prohibit discrimination in housing based on protected characteristics such as race, color, religion, national origin, sex, familial status, and disability.

The Fair Housing Act is the primary federal law prohibiting housing discrimination, enacted as part of the Civil Rights Act of 1968 and amended in 1988 to include disability and familial status protections.

A monetary penalty imposed on a homeowner for violating the governing documents or community rules.

A common area amenity equipped with exercise machines, free weights, and other fitness equipment for use by homeowners and authorized residents.

The complete set of legal documents that establish and govern a homeowners association.

An enclosed vehicle storage area that may be individually owned, limited common area, or part of a shared parking structure.

A controlled entry point that restricts vehicle or pedestrian access to a community.

The various filings and reports that an association is required to submit to government agencies.

A provision that allows a homeowner experiencing financial difficulty to request a reduction, deferral, or waiver of certain charges such as late fees, interest, or collection costs.

Heating, ventilation, and air conditioning systems that control the indoor climate.

A formal proceeding where a homeowner accused of a violation has the opportunity to present their side of the story before the board or a designated committee.

A secure online platform where homeowners can access their account information, make assessment payments, submit maintenance requests, view community documents, and communicate with the board or management.

The estimated annual rate of cost increase applied to replacement costs in a reserve study to project future expenses in inflation-adjusted (future) dollars.

Revenue earned by the association from investing reserve or operating funds in interest-bearing accounts or instruments.

A board-adopted document that establishes guidelines for how association funds — both operating and reserve — may be invested.

A court order requiring a party to do or refrain from doing a specific act.

A contractual or legal obligation to compensate another party for losses or damages.

Coverage purchased by the association to protect against financial losses from property damage, liability claims, and other risks.

The minimum insurance coverage levels that the association and individual homeowners must maintain as specified in the governing documents, state law, and lender requirements.

An Inspector of Elections is an independent person or entity appointed by the board of directors to oversee and administer elections and member votes in a California common interest development, as required by Civil Code Section 5110.

Internal Dispute Resolution (IDR) is a mandatory informal process established by California Civil Code Section 5900 that provides homeowners and associations with a structured way to resolve disputes before escalating to formal legal proceedings.

A formal request submitted by the association to its insurance carrier for coverage of a loss or damage.

The system for tracking and controlling access keys, fobs, cards, and codes used to enter community facilities and common areas.

A legal claim placed against a property as security for unpaid assessments or other charges owed to the association.

A charge imposed on a homeowner who fails to pay their assessment by the due date.

A portion of the common area that is reserved for the exclusive use of one or more specific units but is still owned by the association.

A legal action filed in court by or against the association.

Legal responsibility for damages, injuries, or losses.

Portions of the common elements that are reserved for the exclusive use of one or more specific unit owners but remain owned and typically maintained by the association.

The planned arrangement of plants, trees, hardscape, and irrigation systems in common areas and other portions of the community maintained by the association.

The official written record of what occurred at a board or member meeting, serving as the legal documentation of association actions and decisions.

A formal proposal made by a board member during a meeting that requests the board take a specific action.

A voluntary dispute resolution process where a neutral third-party mediator helps the parties reach a mutually acceptable agreement.

The allocation of maintenance, repair, and replacement obligations between the association and individual homeowners as defined in the governing documents.

A professional firm hired by the board to handle the day-to-day operations of the association under a management agreement.

A formal submission by a homeowner or board member requesting that the association address a maintenance issue in the common areas.

A charge imposed on new owners or tenants when they move into a unit.

A committee appointed or elected to identify, recruit, and vet qualified candidates for board positions in advance of an election.

The failure to exercise reasonable care, resulting in damage or injury to another person or their property.

The Davis-Stirling Act establishes detailed notice requirements for virtually every type of association communication, codified primarily in Civil Code Sections 4040 through 4045 (delivery methods) and throughout the Act for specific activities.

A periodic publication distributed to homeowners containing community news, board updates, maintenance schedules, event announcements, rule reminders, and other relevant information.

Rules that establish acceptable noise levels and quiet hours within the community.

Legal requirements that HOA board meetings be open to association members, with limited exceptions for confidential matters discussed in executive session.

The annual plan that outlines expected income — primarily regular assessments — and expenditures for the day-to-day operations of the association.

The recurring, day-to-day costs of running the association, funded by regular assessments and tracked against the operating budget.

A manager who is physically present at the community on a regular basis, as opposed to managing remotely from an office.

A method by which a homeowner authorizes another person to vote on their behalf at an association meeting.

The formal rules and customs governing the conduct of meetings and the making of decisions by a deliberative body.

A measure of the financial health of an association's reserve fund, calculated as the ratio of the current reserve balance to the fully funded balance (also called the ideal balance).

An arrangement between the association and a delinquent homeowner that allows the homeowner to pay off their outstanding balance in installments over an agreed-upon period while continuing to pay current assessments as they come due.

A recorded survey map that shows the division of land into lots in a planned development.

The system of pipes, fixtures, and fittings that distribute water and remove waste within a building.

The designated vehicle storage areas within a community, which may be common area, limited common area, or individually owned.

A ground-level outdoor living space, often adjacent to a unit, that may be designated as limited common area or exclusive use common area.

A planned development is one of the four types of common interest developments recognized under California Civil Code Section 4175.

Proposition 13 is a 1978 California constitutional amendment (Article XIII A) that fundamentally changed property taxation in the state.

The professional oversight of a community association day-to-day operations, including financial management, maintenance coordination, vendor supervision, rule enforcement, and administrative tasks.

The rules governing vehicle parking within the community, including assigned spaces, guest parking, vehicle restrictions, overnight parking, commercial vehicle limitations, and enforcement procedures.

Rules governing pet ownership and behavior within the community, including permitted types and sizes of pets, leash requirements, waste cleanup obligations, noise restrictions, and the number of pets allowed per unit.

A common area recreational facility designed for children, typically including play structures, swings, slides, and safety surfacing.

The minimum number of members or board members who must be present at a meeting before official business can be conducted.

A widely adopted manual of parliamentary procedure used to conduct meetings in an orderly and democratic fashion.

The process by which association members remove one or more board members from office before their term expires.

A formal decision, policy statement, or directive adopted by the board of directors through a vote and recorded as an official action of the association.

Money set aside by the association for the future repair, replacement, or restoration of major common area components.

A professional analysis that identifies all common area components the association is responsible for maintaining, estimates their remaining useful life and replacement cost, and recommends an appropriate level of reserve funding.

The estimated number of years a common area component will continue to function adequately before it needs to be repaired or replaced.

The estimated cost to repair or replace a common area component at the time it is expected to reach the end of its useful life.

A limitation on the use of property imposed by the governing documents.

The uppermost structural component of a building that protects against weather and elements.

A change, exception, or adjustment to a rule, policy, practice, or service that allows a person with a disability to have equal opportunity to use and enjoy their dwelling and the common areas.

A physical change to a unit or common area made by or for a person with a disability to allow them full enjoyment of the premises.

The right of association members to review and copy the books, records, and financial documents of the association.

The process by which the association ensures homeowners comply with the governing documents and community rules.

California Civil Code Sections 5550 through 5560 require every common interest development association to conduct a reasonably competent and diligent visual inspection of accessible common area components at least once every three years, and to prepare or update a reserve study based on that inspection.

A Request for Proposal is a formal document sent to potential vendors inviting them to submit bids for a specific project or service.

Limitations on the ability of homeowners to rent or lease their units, as specified in the governing documents.

A meeting of the association membership called outside of the regular annual meeting schedule to address urgent or specific business that cannot wait until the next annual meeting.

A voting method where the identity of the voter is not linked to their vote, ensuring privacy and reducing the potential for intimidation, retaliation, or social pressure.

A one-time or temporary charge levied on homeowners to fund unexpected expenses or large capital projects that cannot be covered by the operating budget or reserve fund.

The legal right of a party to bring a lawsuit or claim.

The legally prescribed time period within which a lawsuit must be filed.

A recreational amenity in the common area that requires significant ongoing maintenance, including chemical treatment, cleaning, equipment upkeep, and compliance with health and safety codes.

The exterior wall covering material on a building, such as wood, vinyl, fiber cement, stucco, or brick.

Designated areas within common area buildings where individual homeowners can store personal belongings.

A dog that is individually trained to perform tasks or work for a person with a disability.

The inconsistent application of community rules where some violations are pursued while similar violations by other homeowners are ignored.

A stock cooperative is one of the four types of common interest developments recognized under California Civil Code Section 4190.

SB 326, signed into law in 2019, requires all condominium associations in California to conduct periodic inspections of exterior elevated elements — including balconies, decks, walkways, stairways, and their railings — that are constructed with load-bearing components of wood or wood-based products and are six or more feet above ground level.

SB 721, signed into law in 2018, requires owners of multifamily residential buildings with three or more dwelling units to conduct inspections of exterior elevated elements — including balconies, decks, walkways, stairways, and their railings — that are constructed with wood or wood-based products and are six or more feet above ground level.

SB 432 is a California law that updated insurance and disclosure requirements for common interest developments governed by the Davis-Stirling Act.

The California Solar Rights Act, codified in Civil Code Section 714 and referenced in Civil Code Section 714.1 for common interest developments, protects homeowners' rights to install solar energy systems on their property and strictly limits an HOA's ability to restrict solar installations.

An association that operates without a professional management company, with board members and volunteers handling all administrative, financial, and maintenance functions.

A refundable amount collected by the association to cover potential damages to common areas during specific activities such as moving, construction, or event hosting.

A rental arrangement where a unit is leased for a period shorter than the minimum term specified in the governing documents, often 30 days or less.

Restrictions on the number of consecutive terms a board member may serve before being required to step down for at least one election cycle.

The timeframe during which control of the association transfers from the developer (declarant) to a homeowner-elected board of directors.

A reserve funding strategy where the association maintains reserve fund balances above a minimum threshold, typically ensuring the fund never falls below a specified dollar amount or percent funded level over the study's projection period.

A one-time fee charged by the association when a property changes ownership, covering the administrative costs of updating ownership records, preparing and providing disclosure documents to the buyer, issuing estoppel certificates, and processing the transition.

The legal right to ownership of real property.

The process of preparing and submitting tax returns to federal and state tax authorities.

Rules and procedures governing the removal of improperly parked, abandoned, or unauthorized vehicles from the community.

A recreational amenity in the common area used for tennis and sometimes pickleball or other racquet sports.

A decision-making method where a proposal is adopted without a formal vote because no board member or meeting participant objects.

An individual ownership interest in a condominium or planned development that includes the airspace within the boundaries defined by the declaration and condominium plan.

The process by which homeowners or board members formally express their approval or disapproval of a proposal.

An authorized exception to a rule, restriction, or architectural standard granted by the board or architectural committee.

A written communication sent to a homeowner informing them that they are in violation of the governing documents or community rules.

The process of selecting, contracting, overseeing, and evaluating service providers who perform work for the association.

An accounting action taken when the association determines that a delinquent balance is uncollectible and removes it from accounts receivable on the balance sheet.

The glass and frame assemblies in the building exterior.

A document that authorizes and tracks specific maintenance, repair, or service work to be performed.

A collection of documents and information provided to new homeowners when they purchase a unit in the community.