What is the difference between a HOA and Civic Assn

I am trying to find out what is the difference between a HOA and Civic Assn. If there is one. The neighbor I live in used to be a Civic Assn. and now they are saying they are a HOA. But the word HOA in no where to be found in the by-laws or covenants. I was also told we have manatory dues which is fine if they spend the money right and they are not. I was told that a Civic Assn. can not have manatory dues if this is so does anyone know where I can find this so I can show the BOD. We also file our taxes as a Civic Assn. if this makes a difference.

Paula,

A civic assn is a voluntary assn that keeps up on issues important to the property owners in a particular area, i.e. zoning issues, schools, etc. Many civic assn's do not charge dues to belong but may ask for a donation from time to time.

An HOA (Homeowners Association) is an organization of property owners in a specific subdivision. Usually there are common areas located w/i the subdivision that must be maintained and the HOA is resp. for doing this. A mandatory HOA means all property owners in the s/d MUST belong and pay dues and this will be stated in the deed restrictions (CCRs or covenants). The CCRs should state whether or not an HOA is to be formed and whether or not it shall be organized as a nonprofit corp. Look for an article titled: "Organization and rights and powers of the assn", or something to that effect. If it is a voluntary HOA, property owners may choose whether or not to belong. Many properties have deed restrictions and no HOA. Ususally this means there are no common areas to be maintained. The common areas in a planned community (single family homes) are owned by the HOA. In a condo community each unit owner has an undivided interest in the common areas.

If your org is an HOA you would NOT file income taxes as a civic assn; but rather as an HOA. IRS Form 1120H is specifically designed for HOAs; however, an HOA can elect to file the regular Corp. form 1120.

Paula:

Please list for us your association's governing documents.

You're already mentioned by-laws and covenants. Do you have articles of incorporation somewhere? Maybe if you don't have them yourself, they might be listed on the secretary of state's website?

Either way, it appears that what the association named itself might be irrelevant.

Some HOAs in our area name themselves as "residents associations." Some of them call themselves "community associations." SOME just call themselves the X Y Z Subdivision.

But when all is said and done, they are, indeed HOAs.

"A rose by any other name. . ."

In fact my own association is XXXXXX XXXXX Residents Association.

But we are definitely a mandatory HOA.

What I'm trying to say is that we really need more information from your governing documents, rather than just the name they decided to give themselves.

There MAY be a difference between an HOA and a civic association (lower case), but not necessarily a difference between an HOA and a Civic Association (upper case, formal name of community).

Paula, I think you're still getting mired in semantics.

We could just have easily been "called" XXXXX XXXXX Civic Association.

If they are non-profit, or not-for-profit, that doesn't affect in ANY way their mandatory or voluntary dues or donations status.

The point I'm trying to make is that their NAME include the Phrase "Civic Association," and they don't have to mention ANYWHERE that they are an HOA. Our documents don't.

BUT, your covenants should have a description of what the purpose of the association is, and it won't say "HOA" either, necessarily.

For example, our covenants, which run with the land, call it a "residents association." Nowhere does it EVER say "HOA."

ARTICLE IV - RESIDENTS ASSOCIATION

Section 1. Owner's Easement of Enjoyment. Every owner shall have a right and easement of enjoyment in and to the common area, which shall be appurtenant to and shall pass with title to every lot. The common area means and refers to all non-residential lots and areas which are shown on any recorded final subdivision plat within any portion of any section of XXXXX XXXXX including without limitation XXXXX XXXXX, SECTION 1, From XXXXXX Road, and any other entrance ways to XXXXX XXXXX, which are constructed in an area dedicated for public use, are also or shall become part of the common area subject to maintenance by the Residents Association. The right of enjoyment is subject to the following provisions:

(and then it goes into a lot of stuff about assessment, voting, etc.)

Then it goes into this in Section 12, defining who is and is not a member:

Section 12. Membership. Developer and every owner of a lot, which is subject to an assessment, shall be a member of the Residents Association. Such owner and member shall abide be the Residents Association Bylaws, Articles of Incorporation and rules and regulations, shall pay the assessments provided for in the Declaration when due, and shall comply with the decisions of the Residents Association’s Board of Directors. Membership shall be appurtenant to and may not be separated from ownership of any lot, which is subject to assessment.

In other word, a mandatory association, whether we called in a Residents Association, a homeowners association, or a "civic" association.

Do your covenants contain any language similar to that at all?

oh and our docs also go into the fact that all members are eligible to enforce the covenants, not just the board or the developer.