Glossary

# 1 term

• 1120-HAn 1120-H is the tax form some HOAs file yearly with the IRS to exclude certain membership assessments from taxable income.

A 16 terms

• Accounting Software for Homeowner’s AssociationsAccounting software for homeowners associations helps boards pay expenses, collect fees, generate reports and keep homeowners informed.
• Accounts PayableHOA accounts payable (AP) represent money an association owes to suppliers as short-term debts, tracked in its general ledger.
• Accounts ReceivableHOA accounts receivable are funds owed but not yet paid to a homeowners association, including assessed dues, fees, and fines.
• Accrual Method of AccountingThe accrual method lets an HOA record revenue before payment is received and record expenses when they're incurred, not when paid.
• Ad Valorem TaxAn ad valorem tax is a tax based on the assessed value of real property. It is typically levied by local governments and not the HOA itself.
• Adjoining PropertyAn adjoining property is a piece of real estate that shares a boundary with another parcel, a concept relevant to HOA property lines.
• Alternative Dispute Resolution (ADR)Alternative Dispute Resolution (ADR) includes mediation or arbitration as ways to resolve conflicts without going to court.
• Amending Governing DocumentsIt refers to formally changing the association’s foundational rules, such as the Declaration, Bylaws, or Articles of Incorporation.
• Annual General Meeting (AGM)An Annual General Meeting (AGM) is the yearly meeting where homeowners review the HOA's finances, vote on board members, and hear updates.
• Annual Meeting MinutesAnnual meeting minutes of an HOA's board of directors are the official record of decisions, votes, and actions taken at the yearly meeting.
• Architectural Committee (ARC)An architectural committee is an appointed or elected group that oversees compliance with architectural standards in an HOA or similar entity.
• Architectural Requests for HOAsArchitectural requests let homeowners propose exterior property changes to their HOA, keeping the community visually cohesive.
• Architectural Review Board (ARB)The ARB is a committee that reviews homeowner requests to change their property’s exterior, such as fences, paint, or additions.
• Articles of IncorporationArticles of incorporation are an HOA's founding documents, filed with the state (usually the Secretary of State) to establish it.
• AssessmentsAssessments, in the context of an HOA, are special-purpose levies on property owners that are distinct from dues or other regular monthly fees.
• AutopayAutopay allows homeowners to pay recurring HOA fees and dues via bank account or credit card, avoiding lost checks and late-payment penalties.

Also under A: HOA Annual Report

B 9 terms

• Banking IntegrationsBanking integrations simplify financial management for HOAs by linking accounts to streamline dues collection, payments, and record-keeping.
• Board MeetingHOA board meetings are where important community decisions are made, covering budgets, repairs, rules, and homeowner concerns.
• Board Meeting AgendaA board meeting agenda outlines the topics an HOA board will discuss, helping keep meetings focused, organized, and productive.
• Board Meeting ElectionsBoard member elections give HOA homeowners the opportunity to vote on leadership, ensuring fair representation and fresh perspectives in the community.
• Board Meeting MinutesBoard meeting minutes document what happens during HOA meetings, keeping a record of decisions, discussions, and future actions.
• Board ResolutionAn HOA board resolution is an official decision made by the board to address issues, approve actions, or set policies for the community.
• BOI and BOI ReportingHOAs must understand BOI and BOI reporting to correctly identify the association’s true owners, which is a requirement of the Corporate Transparency Act.
• Bookkeeping ServicesBookkeeping services track an HOA's financial records, supporting accurate reporting, timely payments, and organized budgets.
• BylawsHOA bylaws outline the rules for board operations, elections, and decision-making, ensuring fair and consistent community governance.

Also under B: HOA Bank Reconciliation

C 13 terms

• Capital ImprovementA capital improvement is a major upgrade to common property that increases its value or lifespan, like replacing roofs or resurfacing courts.
• Capital ReservesCapital reserves are funds an HOA sets aside to pay for the replacement of key components of the property or repairs due to unexpected damage.
• Chart of AccountsAn HOA chart of accounts indexes and categorizes all of a homeowner association’s financial transactions to provide a picture of the HOA’s fiscal health.
• Common ElementsCommon elements are the shared parts of a community, like roads, pools, and clubhouses, that homeowners have access to and collectively fund.
• Common Interest Development (CID)A CID is a community where property owners share ownership of common areas. This includes HOAs, condos, and planned unit developments.
• Community Association ManagerA community association manager oversees daily operations for homes, condos, or townhomes governed by a homeowners association.
• Community ManagementHOA community management covers the day-to-day administrative and maintenance operations of a homeowners association or similar community.
• ConditionsConditions for HOAs are the official rules, regulations, and policies each homeowner or resident must adhere to while living in a managed community.
• Condo ManagementCondo management encompasses a variety of duties all geared toward supporting the ongoing operation and maintenance of residential condominium property.
• Condo Management SoftwareCondo management software provides the digital tools association board members need to effectively support the condo community on a day-to-day basis.
• Constructive NoticeA constructive notice is a legal presumption that an individual is aware of specific information based on the fact that the information is public record.
• Corporate Transparency ActThe Corporate Transparency Act helps prevent money laundering by requiring HOAs to disclose information about their beneficial owners.
• Covenants, Conditions and Restrictions (CC&Rs)HOA Covenants, Conditions and Restrictions (CC&Rs) are a community's policies, rules, and guidelines residents agree to upon moving in.

D 6 terms

• DeclarantA declarant is the developer or builder who creates an HOA community, establishing its rules, governing documents, and structure.
• Declaration of CovenantsThe Declaration of Covenants, also known as the Declaration or Master Deed, is the foundational legal document that establishes a homeowners association.
• Deferred MaintenanceDeferred maintenance refers to necessary repairs to an association's property that have been postponed because of budget constraints or other delays.
• Digital Property Management CompanyA digital property management company combines HOA software with remote professional services like bookkeeping and tax preparation.
• Dispute ResolutionDispute resolution gives HOAs a structured way to resolve conflicts between homeowners and the board, promoting fairness.
• Due ProcessDue process requires HOAs to follow fair, consistent procedures when enforcing rules and imposing penalties on residents.

Also under D: HOA Delinquency Policy

E 8 terms

• EasementAn easement gives individuals or business entities the legal right to enter and use property owned by someone else for reasons outlined in the contract.
• EIN for HOAsAn EIN for HOAs is a unique employer identification number associations need to file tax documents and communicate with the IRS.
• Electric Vehicle Charging PolicyAn electric vehicle charging policy helps HOAs manage EV charger installations and usage to support sustainability and community harmony.
• Email — HOAEmails are a fast and effective way for HOAs to share mass updates, reminders, and important information with residents.
• Emergency Plan ChecklistAn emergency plan checklist helps HOAs prepare for unexpected situations, ensuring safety and organization during community emergencies.
• Equitable ServitudeAn equitable servitude lets an HOA enforce restrictions like architectural guidelines even when they aren't part of the property deed.
• Estoppel LetterAn estoppel letter is a document an HOA provides during a property sale to confirm a homeowner's unpaid dues, fines, or fees.
• Exclusive Use Common AreaExclusive use common areas in HOAs are shared spaces, like a patio or parking spot, set aside for a specific homeowner's private use.

F 7 terms

• Fair Debt Collection Practices ActThe Fair Debt Collection Practices Act prohibits HOAs and debt collectors from using abusive or deceptive tactics when collecting a debt.
• Fair Housing ActThe Fair Housing Act (FHA) prohibits discrimination in managed communities by setting guidelines all HOAs must follow when enforcing rules and policies.
• Fidelity InsuranceFidelity insurance, also called a fidelity bond, protects the HOA against losses from theft, fraud or embezzlement by board members or managers.
• FiduciaryIn an HOA, a fiduciary is a board member or manager legally obligated to act in the best financial interests of the association.
• Florida House Bill 59Florida House Bill 59 establishes new HOA guidelines regarding the distribution of the community’s Covenants, Conditions, and Rules (CC&Rs) to residents.
• Florida House Bill 1203Florida House Bill 1203 changes how HOAs must operate and how these changes promote a healthier, more transparent environment in managed communities.
• Freedom to Display the American Flag ActThe Freedom to Display the American Flag Act protects a homeowner's right to display the US flag and limits HOA restrictions on the practice.

Also under F: HOA Financial Audit

G 3 terms

• Governing DocumentsGoverning documents, like the CC&Rs and bylaws, are the foundation of an HOA, outlining its rules, responsibilities, and processes.
• Grandfather ClauseA grandfather clause in an HOA lets existing homeowners keep certain privileges or conditions when a new rule is introduced.
• Grievance ProcedureA grievance procedure in HOAs provides a structured way for residents to address and resolve concerns or conflicts fairly.

H 31 terms

• HOA AccountingHOA accounting involves managing the financial responsibilities of a homeowners association, including budgets, dues, expenses, and financial reporting.
• HOA Annual ReportAn HOA annual report summarizes the association's financial performance and activities over the past year for homeowners and the board.
• HOA AppAn HOA app is software that handles the tasks of homeowners association management, whether run by a volunteer board or a firm.
• HOA Bank ReconciliationBank reconciliation compares an association's internal financial records to its bank statement to verify transactions are accurate.
• HOA BookkeepingHOA bookkeeping records an association's financial transactions; bookkeepers may also issue invoices, file taxes, and pay vendors.
• HOA Budget TemplateAn HOA budget template is a pre-made spreadsheet or document that helps the board plan annual income, expenses, and reserve funding.
• HOA BudgetsHOA budgets outline planned expenses and income, helping the community manage funds for maintenance, projects, and unexpected repairs.
• HOA CommunicationHOA communication is the exchange between officers and residents of a given homeowners association, ranging from invoices to community events.
• HOA Delinquency PolicyAn HOA delinquency policy outlines how the association handles unpaid dues, including timelines, late fees, and potential legal action.
• HOA DuesHOA dues are regular payments homeowners make to maintain shared spaces, cover services, and fund the community’s operations.
• HOA Election BallotsHOA election ballots allow homeowners to vote on board members and key decisions, ensuring fair and transparent elections.
• HOA FinancesHOA finances include monies that Homeowners Associations (HOAs) handle for the benefit of their member property owners and their covenanted communities.
• HOA Financial AuditA financial audit is an independent review of the HOA’s financial statements, typically by a CPA. It’s a more rigorous process than a financial review.
• HOA ForeclosureHOA foreclosure is the legal process an association can use to recover unpaid dues or fees by forcing the sale of a homeowner’s property.
• HOA LienAn HOA lien is a legal claim an association places on a homeowner's property when dues or fees go unpaid, securing the debt until it's paid.
• HOA ManagementHOA management allows for the smooth operation of community associations, overseeing maintenance, finances, and homeowner communications.
• HOA Management SoftwareHOA management software simplifies homeowners association management by streamlining payments, communication, and record-keeping for better efficiency.
• HOA Meeting Minutes TemplateAn HOA meeting minutes template is a pre-formatted document that helps the board record action items during official meetings.
• HOA Meeting QuorumAn HOA meeting quorum is the minimum number of members who must be present, in person or by proxy, for official business to take place.
• HOA MemberAn HOA member is a person who, by virtue of owning property within an HOA-governed community, partakes in both benefits and obligations of membership.
• HOA PaymentAn HOA payment covers homeowner contributions to maintain shared spaces, fund amenities, and support community services.
• HOA PlatformAn HOA platform is a computer application designed to handle many of the tasks common in administering a homeowners association.
• HOA PortalAn HOA portal lets homeowners pay assessments, respond to violation notices, request maintenance, and access community documents.
• HOA Rule Enforcement PolicyAn HOA rule enforcement policy outlines procedures for handling violations, including warnings, fines, hearings, and escalation steps.
• HOA SoftwareHOA software helps operations for homeowners associations, handling payments, communications, and record-keeping in one convenient platform.
• HOA SurveyAn HOA survey lets residents voice opinions on issues that affect the community and helps the board improve how it manages the property.
• HOA TransitionAn HOA transition is the handover of control from the developer to the homeowners, typically after a specified number of units have been sold.
• HOA Website BuilderAn HOA website builder helps associations create a website for online payments, document access, and resident communication.
• Homeowners Association ManagementHomeowners association management handles the day-to-day tasks that keep an HOA organized, from collecting dues to maintaining shared spaces.
• Homeowners association tax returnA homeowners association tax return usually consists of IRS Form 1120-H, which excludes from gross income certain funds for common community functions.
• Hybrid Community ManagementHybrid community management combines self-management with outsourced professional support, while the board retains control over governance.

I 5 terms

• Implied Warranty of HabitabilityAn implied warranty of habitability is an assurance, presumed in any residential lease, that a rental property meets basic livability standards.
• Incident ReportAn HOA incident report documents an accident on common property or a perceived violation of association rules for board review.
• Inspection ChecklistAn inspection checklist helps HOAs maintain community standards and addresses safety, maintenance, and compliance during property reviews.
• Insurance DeductibleAn insurance deductible is the amount the HOA must pay out of pocket before their insurance policy kicks in after a covered event.
• Invoice AutomationInvoice automation is a software feature that electronically notices homeowners of dues, fees, and other assessments owed.

L 4 terms

• Lease RestrictionsLease restrictions allow HOAs to manage rentals to strengthen community stability, protect property values, and maintain consistent resident standards.
• Lien NoticeA lien notice is a formal warning that an HOA can place a legal claim on a property when a homeowner doesn’t pay their dues or fees.
• Lien PriorityLien priority determines the order in which debts are paid during a foreclosure. HOA liens often rank below mortgage or tax liens.
• Limited Common ElementsLimited common elements are shared areas in an association reserved for one or a few units, such as balconies or assigned parking.

M 8 terms

• Maintenance ChecklistA maintenance checklist is a tool HOAs use to organize routine upkeep and repairs for shared spaces, keeping the community safe.
• Maintenance RequestsMaintenance requests let homeowners report issues in shared spaces, like broken lights or landscaping problems, for the HOA to fix.
• Management CertificateA management certificate is a formal document that provides key information about an HOA, such as its legal name, address, and contacts.
• Management CompanyA management company handles an HOA's daily operations, like maintenance, finances, and communication, easing the load on boards.
• Mass Communication ToolsMass communication tools let HOAs send announcements, updates, and alerts to homeowners quickly using email, text, or apps.
• Master PolicyA master policy is the community association's insurance policy that covers common areas and, in some cases, structural elements of buildings.
• Multi-family HousingMulti-family housing includes properties like duplexes, apartments, or condos that house multiple households in one structure.
• Multi-generational HousingMulti-generational housing refers to homes where many generations of a family live together, offering shared living spaces and financial benefits.

N 2 terms

• Notice of Annual HOA MeetingA notice of annual HOA meeting informs members of the date, time, and agenda for the association's yearly gathering of members.
• Nuisance ClauseA nuisance clause prohibits behavior that interferes with the peace, comfort, or property values of the community, such as excessive noise or foul odors.

O 3 terms

• Online Dues Payment PortalAn online dues payment portal is a secure platform where homeowners pay HOA dues by card, ACH or autopay and see their payment history.
• Open MeetingLegal requirements for open meetings vary by entity. Most homeowner association boards must open their meetings to property owners but not the public.
• Operating BudgetAn HOA operating budget is the annual financial plan for covering a community's day-to-day costs, like landscaping and utilities.

P 7 terms

• Payment PortalsPayment portals are a feature of HOA-specific applications that enable homeowner members to pay dues, fines, and other assessments with a few clicks.
• Portals for HOAsPortals for HOAs are personalized dashboards for homeowners to make payments, initiate maintenance and architectural requests, and check community records.
• Property Line DisputesProperty line disputes happen when neighbors disagree over the legal boundary between each property, often resulting in legal battles and HOA involvement.
• Property Management CompanyA property management company may be hired by an HOA’s board to take over administrative tasks such as billing and accounting.
• Property Management Dashboard ToolA property management dashboard tool helps HOA boards and property managers monitor operations, track issues, and streamline communication.
• Property Owners Association (POA)A POA is similar to a homeowners association but typically governs a broader range of properties, including commercial developments.
• Proxy VotingProxy voting lets a homeowner authorize someone else to vote on their behalf at an HOA meeting, helping boards meet quorum when members can't attend.

Q 1 term

• QuorumA quorum is the minimum number of officers or members of a given entity required to be present at a given meeting so as to transact business.

R 4 terms

• Reserve StudyA reserve study is a financial planning tool used by HOAs to estimate how much money should be set aside for future repairs and replacements.
• Restrictive CovenantsRestrictive covenants in real estate contexts are neighborhood agreements specifying actions homeowners can and cannot take.
• Restrictive EndorsementsA restrictive endorsement limits how a check can be deposited or used, such as marking it for deposit only, to help protect HOA funds.
• Right of First RefusalThe right of first refusal lets the HOA, or its members, match a third-party offer before a property is sold to a new owner.

Also under R: HOA Rule Enforcement Policy

S 7 terms

• Self-managed Condo AssociationA self-managed condo association represents owners of residences (usually apartments) and carries out the tasks necessary for the community’s function.
• Self-managed HOAVolunteer leaders execute the tasks necessary for a self-managed HOA without the full-time assistance (and expense) of outside management professionals.
• Self-Managed HOA SoftwareSelf-managed HOA software is a digital platform that helps volunteer-run communities manage accounting, dues, communication, and voting.
• Special AssessmentA special assessment is a one-time fee charged to homeowners when the HOA needs additional funds for unexpected or unbudgeted expenses.
• Statute of FraudsThe statute of frauds requires certain agreements (such as service contracts or real estate sales) to be in writing to be legally enforceable.
• Statute of LimitationsThe statute of limitations sets the legal time limit for an HOA to file a lawsuit or claim, covering unpaid dues or construction defects.
• Sunshine LawA sunshine law requires transparency from governments and some entities, and can apply to HOAs by requiring open meetings and records.

T 3 terms

• Tax ReturnFiling an HOA tax return is required for homeowners associations and must be done on time to avoid fines and stay in good standing with the IRS.
• Transition MeetingA transition meeting happens when control of an HOA shifts from the developer to the homeowners, including turning over records.
• TreasurerAn HOA treasurer maintains a community's finances by overseeing dues collection, creating annual budgets, and managing the reserve fund.

U 2 terms

• Uniform Electronic Transactions ActThe Uniform Electronic Transactions Act of 1999 gives e-signatures the same legal validity as paper ones, helping HOAs manage contracts.
• Unit OwnerA unit owner holds legal title to a property in a community association, is subject to its rules and dues, and usually has a vote.

V 2 terms

• Vendor AgreementA vendor agreement sets the terms and conditions for community projects, like maintenance or renovations, performed by a contractor.
• Vendor Management for HOAsVendor management involves selecting, contracting, and overseeing service providers such as landscapers, cleaners, maintenance crews, and accountants.

W 2 terms

• WebsiteAn HOA website helps homeowners associations share information, manage payments, and keep the community informed and connected.
• Welcome Letter for New Association MembersA welcome letter for new association members covers board contacts, meeting schedules, and community rules newcomers need to know.