Top HOA Acronyms You Need to Know
Like any organization, homeowners' associations (HOAs) have a language of their own. While it can be complicated at first, being familiar with HOA acronyms and terminology is essential for board members and homeowners alike. Without this knowledge, it's difficult to understand the inner workings of the association, complete tasks, fulfill fiduciary duties, and set the community up for success. Read on to discover the most common HOA acronyms and what they mean.
HOA (Homeowners’ Association)
What does HOA stand for? Well, HOA is short for homeowners' association. HOAs are established as non-profit organizations to help manage, run, and maintain a community. While HOA is the most common organization name, you may hear others, including property owners' association (POA) or condominium owners' association (COA).
CAM (Community Association Manager)
The community association manager, or CAM for short, is the face and an employee of the HOA management company. You may see CAMs around the community, at meetings, or when you pay your HOA fees. They work closely with boards of directors to perform many basic functions and resolve any complaints or issues that come up along the way.
It varies by association, but CAMs often oversee the following at the direction of the board:
- Contract negotiation and oversight
- Project management
- Insurance administration
- Dispute resolution
- Meeting agendas
- Building and grounds maintenance
- Inspections
- Reserve fund analysis
- Assessment collection
- Financial reports
- Budgeting
RELATED: How to Become a Property Manager
BOD (Board of Directors)
To function correctly, an HOA is required to have a board of directors that is authorized to act on a community's behalf. These boards help create and enforce community guidelines and maintain shared spaces. Boards are made up of volunteers from the community who are elected into the position by other members of the association.
HOA board positions include:
HOA President
The HOA board president has the same powers typically given to the chief executive officer (CEO) of a corporation. This office should be the authority on the rules and laws that govern the board, handle procedural duties, and serve as the spokesperson for business matters.
HOA Vice President
The HOA vice president is second-in-command to the president, so this person will have some parallels and similar duties. In fact, it’s crucial that vice presidents familiarize themselves with the president’s role and be prepared to step in. On occasion, they may need to act in their place when the president is unavailable.
HOA Treasurer
The HOA board treasurer acts as the financial manager for the association. He or she is responsible for the association funds and maintaining all financial records. From billing and collections to disbursement of funds, the treasurer oversees and supports all things financial.
HOA Secretary
The HOA secretary is the official record-keeper of the association. They handle records, agenda development, meeting correspondence, document validation, form filing, and more.
RELATED: The Top 4 HOA Board Leaders: Who They Are & What They Do
CC&Rs (Covenants, Conditions & Restrictions)
Covenants, Conditions, and Restrictions (CC&Rs), sometimes called the declaration or master deed, is a legal document that outlines the rights and obligations of the association, board members, and homeowners. Within the CC&Rs, you'll find information on:
- Fees, dues, special assessments, and late payments
- Maintenance responsibilities
- Architectural standards, like restrictions concerning remodeling and landscaping.
- Pet restrictions
The rules contained in your HOA's CC&Rs are binding and permanent.
ARC (Architectural Review Committee)
Architectural control is an important component in maintaining the character and quality of a community. The architectural review committee (or architectural review board) is a mandatory committee, but its power varies by association. In some communities, the architectural review committee is an advisory body composed of homeowners appointed by the board that makes recommendations to the board of directors. In other communities, the board may appoint homeowners to an architectural board that operates independently of the board of directors, with full and final authority to render decisions and make rules, but with an appeals process to the association board.
Beyond HOA Acronyms: More HOA Terminology
When you speak the language of HOAs and understand common HOA acronyms, your role will become much easier and much more rewarding. From HOA and CAM to BOD and ARC, you now know the basics. Want to get more HOA education? Download our ebook: 12 Terms Every HOA Board Member Should Know now!