The Legislature...finds that covenants and restrictions contained in the declaration, are an appropriate method for protecting the common plan of developments and to provide for a mechanism for financial support for the upkeep of common area including, but not limited to, roofs, roads, heating systems, and recreational facilities. If declarations terminate prematurely, common interest developments may deteriorate and the housing supply of affordable units could be impacted adversely. (Civ. Code § 1265(a).)
CID Created. "A common interest development is created with the recording of the declaration, and other required documents, and there is a conveyance of a separate interest coupled with an interest in the common area or membership in the association. Each owner in a condominium project is a member of the association." (Treo @ Kettner v. Sup. Ct.)
Managed by an Association. Under the Davis-Stirling Act, a common interest development (CID) must be managed by an association. (Civ. Code § 4800.) Associations are variously referred to as:
- Common Interest Realty Associations (CIRA)
- Community Associations (CA)
- Homeowners Associations (HOA)
- Owners Associations (OA)
- Property Owners Associations (POA)
- Residential Community Associations (RCA)
Association Defined. An "association" is defined as a "nonprofit corporation or unincorporated association created for the purpose of managing a common interest development." (Civ. Code § 4080.) It is a private organization managing private property, whether it be residential, commercial, industrial, mixed-use or otherwise.
Association Powers. Unless the governing documents provide otherwise, and regardless of whether the association is incorporated or unincorporated, the association may exercise the powers granted to a nonprofit mutual benefit corporation, as enumerated in Section 7140 of the Corporations Code. (Civ. Code § 4805.)
Board of Directors. Associations are governed through elected boards of directors who have general duties and authority to govern. (Civ. Code § 4080.)
Relation to Members. "The relationship between individual homeowners and the managing association of a common interest development is complex (Lamden v. La Jolla Shores Clubdominium Homeowners Assn. (1999) 21 Cal.4th 249, 266), and their respective rights depend upon the nature of the particular dispute.
Dissolving an Association. See Dissolution of an Association.
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.