HOA verus COA

Started by JohnC46 • 6 replies • 4306 views

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JohnC46 (South Carolina)
Posts: 14,265

Posted:

I see references to HOA and COA. Are there typically differences in state laws one verus the other?

I do understand a COOP can be an enirely different animal.

Thanks

JeffR7 (California)
Posts: 251

Posted:

HOA - Homeowners association often referred to single family homes or townhomes build in a community
COA - Condominium owners association referred to condos. (some townhomes are actually condominiums that only look like townhomes)

Some states differentiate between HOA and COA while others don't

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Our community consists of single-family homes, but it is, according to our declaration, a condominium. But, we have a homeowners association. Go figure.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Don't forget POA's, Property Owners Associations. I belong to one and I assume that the name derives from the fact that the developer sold unimproved parcels instead of homes.

I understand that in some states there is a legal distinction between an HOA and a POA. In Arizona, however, HOA's and POA's both fall under the definition of planned communities and condo's have their own set of statutes.

I found this definition in Arizona Revised Statute 33-1202:
"'Condominium' means real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate portions. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners."

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Connecticut gets around the issue by having a one-size-fits-all statute called "The Connecticut Common Interest Ownership Act."

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By BruceF1 on 01/26/2012 11:13 AM
Our community consists of single-family homes, but it is, according to our declaration, a condominium. But, we have a homeowners association. Go figure.

Bruce,

Who owns the common areas?

If the Arizona definition of a condo is the same elsewhere, you might be considered a condo if the common areas belong to the owners and not the association.

On the other hand, your declaration may state that yours is a condo because the developer copied someone else's declaration. My experience has been that a lot of developers will cut corners by filing documents copied elsewhere without consulting an attorney. Ironically, attorneys admit that they seldom write anything from scratch and usually copy from similar documents. One attorney told me that the last time anyone wrote a contract without copying from something else was probably around 500 BC in Rome.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Larry,

I'm aware of the ownership issue. Not too long ago there was some debate over whether we were a condominium or a PUD. As I recall, the way our declaration is worded is that each member owns a proportionate share of the common elements. I would have to look it up to tell you the exact wording.

The declaration was prepared by an attorney, but even he started with boiler plate from documents-R-us because the declaration speaks of elevators included in the common elements, and of course, being single family homes, we have none. The developer who actually built the community was not the one who started it. He bought the property from a previous developer who never did anything with it and all the original documents simply came along for the ride.

I just made my comment to inject a little humor to demonstrate how things can sometimes become confusing.

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