Differences in Associations?

A homeowners association is the nonprofit entity that governs common-interest developments. Every common-interest development--be it a condo, townhome or detached home in a master-planned community--has three factors in common:

First, there is some common ownership of property; second, all owners automatically belong to the homeowners association, and third, the association collects assessments to pay for operations and sets rules of conduct which owners must agree to follow.

Common-interest developments come in many forms, including:

1--Condominiums. The homeowner holds title to an individual residence (sometimes just the airspace within an apartment unit) and shares interest in the common space (hallways, pools, grounds) with all other owners.

Condominiums and apartment houses converted into condos make up 71% of all the common-interest developments in California.

2--Planned Communities. The homeowner owns his individual home and lot and the association owns and manages common areas, such as roads, streets, pools and open space. These developments compose 26% of common-interest developments in the state.

3--Cooperatives. A corporation holds title to and maintains the units and the common areas. Owners buy a share in the corporation and occupy their residences by virtue of a special lease giving them exclusive occupancy. Cooperatives and community apartments (see below) together comprise about 2% of common-interest developments in the state.

4--Community Apartments. Each homeowner shares an interest in the common area and the apartment building with all the other owners. Owners then get a right of occupancy to a particular unit.

5--Other CIDs. About 1% of California’s common-interest developments are mobile home parks, time shares, air parks and boat slips.

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Sources: Community Assns. Institute; Hanna & VanAtta, attorneys at law; Assembly Select Committee on Common Interest Subdivisions.