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Legal Basis of HOAs

All HOAs are created by Covenants or CC&Rs. They are recorded on the title to every piece of property in a community; therefore, they are legally binding upon the entire community. CC&Rs grant the HOA and the HOA Board legal authority and are the source of restrictions that apply to all members.

CC&Rs may be amended only by the Declarant or a supermajority of homeowners (the percentage required in the Covenants, but more than 50%).

Other governing documents include the Bylaws, Articles of Incorporation and Community Rules or Guidelines. The Community Rules are made by the Board of Directors, and may change. They may not conflict with the CC&Rs, but should add helpful guidance to homeowners.

Role of the Declarant

The Declarant is usually the developer. It is a corporation that owns the land being developed in a community. The Declarant—sometimes Quadrant Homes—is responsible for managing the HOA during the development phase. As the initial owner of all property in the subdivision, the Declarant at first holds all voting rights in the HOA and appoints the first Board of Directors.

Transition to Owner Control

The HOA is turned over to the homeowners after the developer is done developing, selling, and building the community. After that period, a meeting is held when homeowners vote to elect members of the community to the board of directors. That meeting is called the "transition," and marks the transfer of full control to homeowners.

HOAs are governed by a board of directors. After transition, the board is elected by, and composed of, homeowners. The board hires and supervises the community association management firm, which is responsible for the day-to-day management of the HOA.

Homeowner Participation

An HOA is the way by which homeowners may maintain the pleasant, desirable lifestyle envisioned when they purchased a home in a Quadrant community. After transition, HOAs are wholly run by homeowners who volunteer to serve their community.

What are the Common Areas

Membership also gives you the right to use and enjoy the common areas owned by the HOA. Examples of common areas include parks, trails, mailboxes, detention ponds, play structures, sport courts, etc. In some communities, local jurisdictions or third parties may own certain common areas. Check the recorded plot map or call the community association manager to find out what your HOA owns.

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