Legal Distinction

Started by StanleyS1 • 2 replies • 1370 views

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StanleyS1 (Connecticut)
Posts: 3

Posted:

In Connecticut there is a "Non Stock Corporation Act" and a "Common Interest Ownership" Act an HOA can be under one or the other.

I am new to this Forum.
Why do so many posts seem to fail to distinguish between the two forms of organization of a Home Owners Association
Stanley

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Stanley:

I think you may be slightly confused … your HOA is potentially under both.

The Non-Stock Corporation Act would be the corporate entity that the HOA was formed under and these statutes would govern the corporate business portion of the HOA. In other states HOA’s are set up as potentially Non-Profit Corporations, Limited Liability Company, etc. and options vary by state. These govern and are in place per your Articles of Incorporation.

The Common Interest Ownership Act is the governing statutes which homeowner associations must abide and are in place to regulate and protect homeowners, boards, developers, property managers, etc. with regards to certain guidelines. These govern in essence your Declaration of Covenants (CCR’s).

Generally on this website most questions individuals have are regarding their CCR’s, so most posts will reference the Common Interest Ownership Act.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Hi Stanley,

Janet gave a sound explanation. Just as you must comply with various laws so must an association. Your association must follow any applicable federal laws, corporate laws, State HOA/Condo laws, county codes, city ordinances and their own governing documents.

Here is a link to Virginia HOA laws by HOA-VA.com which is a very good summary of what each document is and what laws apply. Granted it will mention VA laws but the overall explanation of what the documents are and how applied is good info.

Tim

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