How is an HOA organized and managed?
In California, Homeowners Associations (HOAs) are organized and managed by the members of the HOA, who are the owners of properties within the subdivision or planned development that the HOA services. The HOA is governed by a set of bylaws, known as the “Declaration of Covenants, Conditions, and Restrictions” (CC&Rs). The CC&Rs typically contain provisions regarding how the HOA is to be organized and managed, including details regarding the election of a Board of Directors, details concerning the size and composition of the Board, and other matters related to the day-to-day operation of the HOA. The Board of Directors is typically elected by a vote of the HOA members. The Board of Directors is responsible for overseeing the operation of the HOA, including establishing and enforcing rules regarding the use and maintenance of the HOA owned common areas, planning activities that are of benefit to the members of the HOA, working with vendors to provide services to the HOA, and representing the members of the HOA in dealings with local government. The Board of Directors is typically supported by an HOA manager, either an individual or a management company, who is responsible for coordinating the administrative and operational work of the HOA. The HOA manager is typically responsible for collecting and depositing dues from the members, managing the membership database, preparing and distributing periodic newsletters to the members, and other related duties that arise from time to time. In summary, Homeowners Associations in California are organized and managed by the members via elected Board of Directors, who generally contract with an HOA manager to handle the day-to-day operations of the HOA.
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