Glossary

Assessments

Assessments are the proportional fees that associations charge their owners. There are two types of assessments. A planned assessment is the annual amount required to fund the next budget. This is typically billed to each owner monthly, often called monthly dues.

A special assessment is required when unexpected expenses occur during the year that were not accounted for in the budget. This is typically billed to the owners as a one-time lump-sum payment. Sometimes, associations split the lump sum into two to three monthly payments.

Association Types

There are several types of owner associations, and their legal formation depends on the division of property and responsibilities.

HOA – Home Owners Association

This is often used as an umbrella term for many forms of owner associations. Here at TBYH, we use HOA when we refer to all forms of association ownership. When we deal with only one category, such as a COA, we will specify that.

In an HOA, member units are entirely independent of each other. The association typically provides just a few services, such as landscaping and snow removal.

COA – Condominium Owners Association

A COA is probably the most complicated of the association types

because it has many common elements and limited common elements that other associations are not responsible for. Often, they have shared roofs, hallways, elevators, HVAC, etc. They are usually more complicated to manage because there is so much more common property to maintain.

POA – Property Owners Association

POAs are most similar to HOAs. The difference is that POAs do not specify and regulate the appearance of individual homes.

ROC – Residential Owner Community

This is an association of former manufactured homeowners who bought out their landlord and now own their land communally.

Amenities

Amenities are the shared elements of the property that often enhance its value: such as a pool, tennis court, or playground.

Common Elements

The common elements are all of the components of the association property, including roads, sidewalks, elevators, etc.

CDFI

Community Development Financial Institution. A small bank or credit union that makes loans to disadvantaged groups. They receive this designation from the US Treasury. Four types of institutions are included in the definition of a CDFI: CD banks, CD credit unions, CD loan funds (most of which are nonprofit), and CD venture capital funds.

CTAPs

Certified Technical Assistance Providers—This is a US Treasury designation created to ensure that the groups they lend money to have the technical assistance they need to succeed.

Dues

Monthly assessments that owners must pay to the associaation.

FHA

Federal Housing Administration. A government agency that insures mortgages for homes, multifamily properties, and other properties. The FHA is part of the U.S. Department of Housing and Urban Development (HUD).

HUD

Department of Housing and Urban Development. A federal agency that manages housing needs and fair housing laws. HUD’s mission is to create decent homes and living environments for all Americans.

Limited Common Elements

A limited common element is a part of a condominium or planned community that is owned by the community or homeowners association (HOA) but is only used by certain unit owners. A limited common element is restricted to the occupants of specific units, even though the property is owned jointly by all unit owners.

MHC

A manufactured housing community (MHC) is a residential development where manufactured homes are built in a factory and transported to the community for installation. MHCs are also known as mobile home parks, trailer parks, or land-lease communities.

MOA

HOA stands for Homeowners Association, which is a private organization that manages and governs residential communities. HOAs are responsible for creating and enforcing rules for residents and properties, and collecting fees to pay for services and amenities. HOAs are typically found in planned communities, condominiums, or residential subdivisions. They are run by a board of directors elected by the owners. HOA is often used as an umbrella term that is sometimes used to reference all types of community owner associations.

Owner Association. An umbrella term that is sometimes used to reference all types of community owner associations.

PMC

Property Management Company. This is a company type that HOA boards will engage to perform the day to day management of the HOA.

Space Fees

The fees that manufactured homeowners pay for the space upon which their home is placed in the park.

TBYH

Take Back Your HOA