Term | Definition |
---|---|
accrual basis |
an accounting method where revenue or expenses are recorded when a transaction occurs vs. when payment is received or made The other accounting methods include: https://www.investopedia.com/terms/a/accrualaccounting.asp https://www.investopedia.com/terms/c/cashbasis.asp https://www.investopedia.com/terms/m/modified-accrual-accounting.asp CA Civ. Code § 5200 |
annual budget report |
the report distributed by the HOA 30 to 90 days before the end of its fiscal year Unless the governing documents impose more stringent standards,
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4076 CA Civ. Code § 5300 CA Civ. Code § 5320 CA Civ. Code § 5570 CA Civ. Code § 5600 |
annual policy statement |
the statement described in Section 5310 (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4078 CA Civ. Code § 5310 |
articles of incorporation |
the basic charter of a corporation which spells out the name, basic purpose, incorporators, amount and types of stock which may be issued, and any special characteristics such as being non-profit Each state has its own system of approval of articles, prohibits names which are confusingly similar to those of existing corporations (so an incorporator can test the name by applying to reserve the name), sets specific requirements for non-profits (charitable, religious, educational, public benefit, and so forth), and regulates the issuance of shares of stock. Articles must be signed by the incorporating person or persons or by the first board of directors. Major stock issuances require application to the Securities and Exchange Commission. The starting point for filing and approval of articles of incorporation is usually the state's Secretary of State. There will be a fee and, often, a deposit of an estimated first year's taxes. https://dictionary.law.com/Default.aspx?typed=articles of incorporation&type=1 |
association |
a non-profit corporation or unincorporated association created for the purpose of managing a common interest development (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ Code § 4080 |
board |
the board of directors of the association (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4085 |
board meeting |
(Amended by Stats. 2021, Ch. 276, Sec. 1. (SB 391) Effective September 23, 2021.) CA Civ. Code § 4090 |
board of directors |
the elected body that goverrns a common interest development |
bylaws |
the written rules for conduct of a corporation, association, partnership or any organization They should not be confused with the articles of incorporation, which only state the basic outline of the company, including stock structure. Bylaws generally provide for meetings, elections of a board of directors and officers, filling vacancies, notices, types and duties of officers, committees, assessments and other routine conduct. Bylaws are in effect a contract among members and must be formally adopted and/or amended. |
cash basis |
an accounting method that recognizes income and expenses at the time cash is received or paid out The other accounting methods include: https://www.investopedia.com/terms/a/accrualaccounting.asp https://www.investopedia.com/terms/c/cashbasis.asp https://www.investopedia.com/terms/m/modified-accrual-accounting.asp CA Civ. Code § 5200 |
common area |
the entire common interest development except the separate interests (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4095 |
common interest development (CID) |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4100 |
community apartment project |
a development in which an undivided interest in land is coupled with the right of exclusive occupancy of any apartment located upon it (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4105 |
community service organization or similar entity |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4110 |
condominium plan |
a plan described in CA Civ. Code Section 4285 A condominium plan shall contain all of the following:
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4120 |
condominium project |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4125 |
Covenants, Conditions, and Restrictions (CC&Rs) |
a recorded documentation that contains a legal description of the development and a statement that is a community apartment project, condominium project, planned development, or stock cooperative The declaration must additionally include the name of the association and the restrictions on the use or enjoyment of property. CC&Rs describe property rights and obligations of the membership, such as
CA Civ. Code § 4250 |
Davis-Stirling Common Interest Development Act or Davis-Stirling Act |
the largest body of law regulating community associations in California Other laws impacting HOAs include the Business & Professions Code, Civil Code, Code of Regulations, Corporations Code, Government Code, Health & Safety Code, Penal code, Tax Code, and the Vehicle Code. |
declarant |
the person or group of persons designated in the declaration as declarant, or if no declarant is designated, the person or group of persons who sign the original declaration or who succeed to special rights, preferences, or privileges designated in the declaration as belonging to the signator of the original declaration (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4130 |
director |
a natural person who serves on the board (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4140 The Corporations Code defines "directors" as natural persons designated...elected or appointed...to act as members of the governing body of the corporation. A person who does not have authority to act as a member of the governing body of the corporation, including through voting rights as a member of the governing body, is not a director. (Amended by Stats. 2015, Ch. 303, Sec. 45. (AB 731) Effective January 1, 2016.) CA Corp. Code § 5047 |
exclusive use common area |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4145 |
general notice |
the delivery of a document pursuant to Section 4045
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4148 |
governing documents |
the declaration and any other documents, such as bylaws, operating rules, articles of incorporation, or articles of association, which govern the operation of the common interest development or association (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4150 |
Homeowners Association (HOA)* |
a non-profit organization made up of volunteers and a governing body that makes an enforces rules for a subdivision of homes, condominium complex, or planned development HOAs can be incorporated or unincorporated. It is formed for the purpose of managing a residential development. HOAs are generally associated with developments consisting of single family homes (SFH) on individual lots. The homes can either be detached, stand alone structures or they can be townhomes. In the Davis-Stirling Act, it falls under the category of planned developments. * This website generally uses Homeowners Association or HOA as a catch-all. There are many variations in the usage of this term, such as homeowner association, homeowner's association, home owner association. Others insist that HOA can only refer to single-family planned developments and prefer community association or condominium owners association (COA). There is a distinction between Homeowners Associations (HOAs) and Property Owners Associations (POAs). https://www.davis-stirling.com/HOME/H/Homeowners-Association |
individual notice |
the delivery of a document pursuant to Section 4040
(Repealed (in Sec. 1) and added by Stats. 2021, Ch. 640, Sec. 2. (SB 392) Effective January 1, 2022. Operative January 1, 2023, by its own provisions.) CA Civ. Code § 4153 |
item of business |
any action within the authority of the board, except those actions that the board has validly delegated to any other person or persons, managing agent, officer of the association, or committee of the board comprising less than a quorum of the board (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4155 |
managing agent |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ Code § 4158 |
member |
an owner of a separate interest (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4160 |
modified accrual or modified cash or hybrid accounting |
an accounting method that combines accrual basis accounting with cash basis accounting Modified accrual is allowed under the Davis-Stirling Act Civ. Code § 5200. Associations using modified accrual typically record assessments when due (accrual basis) but record expenses when paid (cash basis). The other accounting methods include: https://www.investopedia.com/terms/a/accrualaccounting.asp https://www.investopedia.com/terms/c/cashbasis.asp https://www.investopedia.com/terms/m/modified-accrual-accounting.asp CA Civ. Code § 5200 |
operating rules or rules and regulations |
Rules and regulations are sometimes called “HOA Rules,” “House Rules,” or simply “Rules.” (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4340 |
person |
a natural person, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, limited liability company, association, or other entity. (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4170 |
planned development |
a real property development other than a community apartment project, a condominium project, or a stock cooperative , having either or both of the following features:
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4175 |
pro forma budget |
an operating budget showing estimated revenue and expenses on an accrual basis "Pro forma" is from the Latin meaning "according to form." (Amended by Stats. 2017, Ch. 127, Sec. 4. (AB 690) Effective January 1, 2018.) CA Civ. Code § 5300 CA Civ. Code § 5320 |
reserve account requirements |
the estimated funds that the board has determined are required to be available at a specified point in time to repair, replace, or restore those major components that the association is obligated to maintain (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4178 |
reserve accounts |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4177 |
reserve study |
a long-term capital budget planning tool, completed at least once every 3 years, identifying the current status of the reserve fund and a stable and equitable funding plan to offset ongoing deterioration, resulting in sufficient funds when those anticipated major common area expenditures actually occur The reserve study process can be simplified as follows:
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 5550 https://www.davis-stirling.com/HOME/H/HOA-Reserve-Study-Required |
rules and regulations or operating rules |
Rules and regulations are sometimes called “HOA Rules,” “House Rules,” or simply “Rules.” (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4340 |
self-managed HOA |
a community association that is solely managed by an HOA board of directors elected by homeowners |
separate interest |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4185 |
stock cooperative |
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.) CA Civ. Code § 4190 CA Corp Code § 25100 |
undivided interest |
two or more persons have an interest in a property but there is no way to identify which part he or she owns |