If you have ever opened your HOA's governing documents or a board meeting packet and felt lost, you are not alone. Associations use their own vocabulary. Here are five common terms in plain English to help you read your documents with confidence.
Reserves
Reserves are savings the association sets aside for future major repairs and replacements. Think roofs, paving, fencing and other shared components that wear out over time. Planning reserves ahead helps the community pay for big projects without surprises.
Special assessment
A special assessment is a one-time charge to owners, beyond regular dues, to cover a specific expense. Associations may use them when a cost is not covered by the budget or reserves. Good long-term planning helps reduce the chance of needing one.
CC&Rs / Declaration
The declaration is the recorded document that establishes the community and its covenants, conditions and restrictions, which is why it is often called the CC&Rs. It typically describes what the association maintains, what owners maintain and the standards the community follows. When a question comes up about who is responsible for something, the declaration is usually the first place to look.
Quorum
Quorum is the minimum number of owners or board members who must be present or represented for a meeting to conduct official business. Your governing documents set the number. If quorum is not reached, the meeting generally cannot take official action, which is one reason owner participation matters.
ARC (architectural review)
Architectural review is the process, often handled by a committee, for reviewing owner requests for exterior changes such as fences, paint colors or patios. Many communities require approval before work begins, so check before you start a project.
Where to find these terms
Your community's governing documents, usually the declaration, bylaws, articles of incorporation and rules and regulations, define how these terms apply in your association. Definitions and requirements can differ from one community to the next, so always check your own documents.
Have a question about a term in your documents? Contact your community manager. Accord owners can find community documents by logging in through the HOA Portal at accordhoa.com.
This article is general information only, not legal advice. Your community's governing documents and applicable Colorado law control; consult your association's attorney about specific situations.