YOUR BOARD’S PLAIN-ENGLISH COMPANION
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45 terms · Updated October 29, 2026
45 terms
Money & budgeting
Accounts payable are amounts the association owes for recorded vendor bills or similar obligations that have not yet been paid. They differ from a future budget estimate: a payable relates to an actual obligation recorded in the books. Approval and payment are separate steps in the workflow.
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Accounts receivable are amounts owed to the association that have been recorded but not yet collected. Owner assessments are a common example. A receivables report should distinguish current charges, overdue balances, credits, and adjustments so that the board can understand what the total represents.
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Accrual accounting generally recognizes income when earned and expenses when incurred, rather than only when cash moves. Receivables and payables help connect transactions with the appropriate period. Recognition details and presentation should follow the framework selected with the association’s accountant.
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An agenda is the organized list of subjects a meeting is expected to address. It helps participants prepare and keeps discussion connected to the meeting’s purpose. In some settings, notice and agenda requirements also limit which actions may be taken, so a convenient list alone is not the whole procedure.
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An amendment is an authorized change to a document or rule. The procedure depends on what is being changed: a declaration amendment, bylaw revision, and operating-rule change can follow different approval and recording processes. Editing a shared file is not the same as adopting a valid amendment.
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Architectural review is the association’s authorized process for evaluating proposed property changes against applicable standards. It may involve a committee, board, or designated reviewer. Association approval, local permits, and other legal restrictions are separate checks; one does not automatically replace the others.
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Articles of incorporation are formation documents filed to create a corporation under the applicable state process. An incorporated association’s articles are distinct from its bylaws and recorded property covenants. Not every association uses the same entity form or formation document.
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An assessment is a charge an association allocates to an owner or property to fund community obligations. People often use “dues” for recurring assessments, but the legal meaning can cover more than routine billing. The governing documents and applicable law determine what may be charged, who approves it, and how shares are allocated.
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A balance sheet is a financial snapshot at a particular date showing assets, liabilities, and the remaining equity or fund balances under the reporting framework used. It differs from a report showing activity over a period. Association reports may separate funds or use terminology different from corporate financial statements.
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A ballot is the record through which an eligible voter expresses a choice or consent in a voting process. It may be paper or an authorized electronic record. A usable ballot needs to fit the applicable procedure, including eligibility, instructions, delivery, secrecy, verification, and counting requirements where relevant.
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Bank reconciliation is the process of explaining differences between bank records and the association’s accounting records for the same date. Timing items such as outstanding checks may be legitimate; missing fees, duplicate entries, or incorrect amounts need investigation. Simply importing transactions does not complete this review.
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The board of directors is the group authorized to oversee the association’s affairs within the powers and limits of applicable law and its documents. Directors act through the required decision process. Hiring a manager or assigning a task does not make every responsibility disappear from the board’s oversight.
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Bylaws describe internal governance procedures for the association’s organization. They commonly address meetings, directors, officers, and voting, subject to applicable law and other controlling documents. They are different from the property restrictions often found in a declaration or CC&Rs.
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Cash accounting generally records income when received and expenses when paid. It emphasizes payment timing, which can be easier to follow but may not show all unpaid obligations in the main income-and-expense report. Separate supporting reports may still be needed to understand owner balances and vendor commitments.
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Cash flow describes money actually moving into and out of the association over time. It focuses on timing as well as totals. A community can appear balanced over a full year but still face a short-term cash shortage if large bills arrive before assessment payments are collected.
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CC&Rs stands for covenants, conditions, and restrictions. The term commonly describes recorded provisions governing property use and community obligations. It is often used for an association’s declaration or restrictions, but the exact documents and terminology vary. CC&Rs and bylaws should not be treated as interchangeable labels.
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Common area is a general term for shared community property or facilities. In condominium law, common elements can have a more specific legal definition tied to everything outside the units. Ownership, use rights, cost allocation, and maintenance responsibility should be confirmed rather than inferred from public access or appearance.
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A condominium association administers a condominium’s shared affairs under its declaration and applicable law. Condominium ownership generally combines separately owned units with interests in shared common elements. The building’s appearance does not by itself determine whether a property is legally a condominium.
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A conflict of interest arises when a personal, financial, or other outside interest can interfere with a person’s responsibilities to the association. A relationship may require disclosure and a defined handling process even when the person believes the proposed decision benefits the community.
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A declaration is a foundational property instrument that establishes a common-interest community or its recorded rights and obligations. Depending on the community and state, related instruments may have names such as master deed or declaration of covenants. Its property descriptions and allocations can matter as much as its restrictions.
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Developer turnover is the transition from developer or declarant control to owner-led association governance under the applicable framework. The transfer of control, delivery of records, property condition review, financial reconciliation, and unresolved obligations can be distinct parts of the process. A single meeting may not resolve them all.
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An easement is a property right allowing a defined use of land owned by someone else. Its scope comes from the applicable instrument and law, not simply from how the area has recently been used. Shared access, utilities, and drainage are common situations where a board may encounter easements.
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An executive session is a portion of a meeting closed to the usual audience for subjects permitted by applicable rules. It is not a general label for anything sensitive or inconvenient. Permitted topics, attendance, records, and disclosure obligations depend on the jurisdiction and the association’s governing framework.
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Fiduciary duty describes responsibilities associated with acting in a position of trust for another person or organization. For association leaders, applicable law may describe standards of care, loyalty, good faith, and conflict handling. The precise duties and protections depend on the legal role and jurisdiction.
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Form 1120-H is a federal income tax return available to qualifying homeowners associations making the relevant tax election. It is not a general certificate that an association is tax-exempt. Eligibility, income classifications, filing obligations, and the choice of return depend on the association’s circumstances and tax year.
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Governing documents are the collection of instruments that establish and organize an association’s authority, property obligations, and decision processes. The collection may include a declaration, recorded covenants, articles, bylaws, rules, and amendments. Which documents control a question must be evaluated together with applicable law.
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A homeowners association is an organization that administers obligations and shared community matters for a development under its governing framework. Membership and assessment obligations often follow ownership, but the legal structure, property interests, and authority differ among communities and jurisdictions. The acronym alone does not tell you which statute applies.
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An income statement summarizes recognized income and expenses over a period. An association may call it an income-and-expense statement or a statement of revenues and expenses. Its results depend on the accounting basis, so the reported surplus or deficit is not necessarily the change in bank cash.
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A limited common element is common property allocated for the use of one or more specified units rather than all units, under the applicable condominium framework. Exclusive use does not automatically mean private ownership or full owner responsibility for every repair. The declaration and law supply the details.
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Maintenance responsibility identifies who must care for, repair, or replace a particular property component. Ownership, use rights, insurance coverage, and responsibility to pay can be different questions. The declaration, applicable statutes, contracts, and exact component involved need to be considered together.
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Meeting minutes are the formal written record of a meeting’s proceedings and actions. They generally focus on what the body did rather than reproduce every conversation. The required contents, approval process, retention, and member access must follow the rules that apply to the association.
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An operating budget is the association’s plan for expected recurring income and day-to-day expenses over a defined period. It translates services and obligations into assumptions the board can review. Major replacement planning and reserve contributions should be visible alongside it, rather than confused with ordinary operating spending.
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Property owners association is a name used for organizations administering property-related community obligations. It may describe a residential, mixed-use, or broader development, depending on local usage and law. The name POA is not a reliable nationwide test of membership, authority, or which properties are covered.
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A proxy generally authorizes another person to exercise an owner’s voting rights within the scope permitted by the authorization and applicable rules. It is different from an owner directly casting a ballot. Some votes or jurisdictions restrict proxies, and the required form, duration, and revocation process can vary.
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A quorum is the minimum participation required for a meeting or decision process to conduct valid business under its rules. The threshold for an owner meeting may differ from that for a board meeting. Establishing a quorum is a separate question from how many favorable votes are needed to approve a particular action.
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A records request asks an association to inspect or provide specified records under applicable access rules. The right to see a record can depend on the requester, record type, purpose, procedure, and privacy or privilege exceptions. It is not a blanket right to every message or owner detail.
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A regular assessment is the recurring owner charge used to fund the association’s adopted financial plan. It may be collected monthly, quarterly, annually, or on another authorized schedule. The payment interval does not by itself establish the total yearly obligation or the process for changing it.
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A reserve fund is money set aside for significant future repair or replacement obligations identified for the community. It serves a different planning purpose from money available for routine services. The components covered, funding approach, permitted uses, and handling of accounts depend on applicable requirements and the association’s responsibilities.
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A reserve study combines information about significant maintained components with estimates of timing, costs, and a funding plan. It helps a board prepare for future work rather than react only when an asset fails. Estimates require updates as conditions, costs, responsibilities, and completed projects change.
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Rules and regulations are association policies or standards adopted under an authorized power to address community operations or conduct. They may cover matters such as shared facilities or request procedures. Their adoption, notice, scope, and enforcement need to fit applicable law and the controlling documents.
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A self-managed association handles its administration through its board and chosen support rather than delegating the overall day-to-day management role to a management company. It can still use accountants, attorneys, contractors, software, or other specialists. Self-management does not remove legal or financial responsibilities.
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A special assessment is an owner charge imposed in addition to regular assessments for a particular funding need. It may relate to a major project, an unexpected expense, or another authorized purpose. It is not automatically approved merely because a repair is important; applicable voting, notice, and allocation rules still matter.
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The treasurer is an association officer whose financial responsibilities are defined by the governing documents and authorized procedures. The role often involves coordinating financial reporting, budgets, records, and payment oversight. It does not mean one volunteer should control every step or personally provide professional accounting advice.
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A violation notice is a communication identifying an alleged failure to follow an applicable community requirement. A useful notice distinguishes the observation, the rule relied on, and the required next process. It is not automatically a final decision, a fine, or proof that a rule can be enforced.
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A work order is an operational record describing work to be performed, its location, responsibility, and progress. It can connect a resident request with authorized instructions, contractor coordination, and completion evidence. It is different from the approval, contract, or invoice that may also be required.
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EASY TO MIX UP
Operating budgets address routine services; reserve funds plan for significant future work. Timing matters alongside the total.
Quorum concerns required participation. The votes needed for approval are a separate question. Check the rules for the specific vote.
CC&Rs commonly address property obligations; bylaws address internal governance. Read both with applicable law.
General educational explanations for HOA, POA, and condominium boards. Terms and procedures vary by state and governing documents. Examples are fictional. For a specific legal, tax, accounting, or property decision, consult a qualified adviser.
Definitions are independently researched and written by EasyHOA with AI assistance and source checking. Each term page identifies its sources, edition limitations, and consultation date.
Check your state’s legal starting points →