Common interest developments and their homeowners' associations are regulated by state law. In some states, developers are required to provide information about the development to the state department of real estate. The state real estate commissioner issues a public report after finding reasonable arrangements as to the management and control of the development. The reasonable arrangements regulations impose requirements as to the form and powers of homeowners' associations.
In addition to state regulations, existing homeowners' associations are governed by the association's articles, by laws and declarations, which are the governing documents for an association. Homeowners' associations formed as non-profit corporations will have a board of directors (elected by the members), are required to have annual meetings, and are required to keep meeting minutes, as well as records and annual budgets. Unincorporated associations have similar requirements.
Another document that governs the actions of a homeowners' association is the Declaration of Covenants, Conditions and Restrictions ("CC& Rs"). This is a document which individual property owners sign when they purchase a unit, and it sets out restrictions on what the owners can do with their property. The rules of the homeowner's association should be included in this document.
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