How are Homeowners’ Associations formed?
Homeowners’ Associations created pursuant to state law. Homeowners’ Associations that are non-profit corporations are created based upon state laws governing non-profit corporations. If a Homeowners’ Association is an unincorporated association, it is created pursuant to an agreement of member owners. Like other corporations, the agreement of the Homeowners’ Association is contained within the articles of association and bylaws of the entity. A meeting of the members of the HOA is conducted and the board that will govern the activities of the HOA is elected from those property owners present at the meeting. The board may elect officers and agree how to run the association, carry out its activities and duties, determine budgets and assume a term of their service that is contained within the bylaws. Rules governing the election of board members and officers is contained within the bylaws. The Homeowners’ Association is required to have meetings (including at least one annual meeting) and
