Homeowner, condominium, and recreation associations are non-profit corporations managed by a duly elected Board of Directors. Their purpose is to maintain all common areas and to govern the community in accordance with the provision of the legal documents: the Declarations, Bylaws, and Articles of Incorporation. Each association is financially supported by all members. Membership is both automatic and mandatory, as written into the deed of each property.

Declarations and Bylaws are the guidelines for the operation of a non-profit corporation. These documents define the duties of the Board of Directors, the terms of those Directors, the membership's voting rights, and other specific items that are necessary to the running of an association.

The Board of Directors is the governing body of an association. They are elected by the homeowners, or as otherwise specified in the bylaws. Board meetings regularly occur to make decisions regarding the operation of each association. Decisions made by the Board members in these meetings are then carried out and enforced by the management company. 

A management company is contracted by the Board of Directors to serve in an advisory capacity and to provide such services as: accounts receivable and payable functions, supervision of subcontractors, obtaining bids for subcontracted services, and general communications between homeowners and the Board of Directors. The management company reports directly to the Board of Directors. All decisions are made by a majority vote of the Board and the management company is tasked with carrying out/enforcing the decisions of those votes.

All members of homeowner, condominium, and recreation associations pay dues to cover the operating expenses of the common areas and to provide for reserve funds for replacement of common facilities in future years. Depending on the bylaws of an association, dues can be monthly or annual. Yearly budgets and reminders of dues payable are sent to each member.

A budget for each community is prepared each year. This budget is comprised of utilities, landscaping, administrative functions, etc. for the upcoming year. In addition, associations with reserve fund requirements must set monies aside for future expenses due to the life expectancy of certain items: lighting, street resurfacing, home exteriors, pool equipment, etc. These amounts are then divided by the number of units in an association to calculate the monthly or annual dues each member is assessed. Budgets are adjusted yearly to meet anticipated expenses.

Most associations have developed rules and regulations that were adopted by the Board of Directors. Rules are established to provide direction to homeowners for common courtesies with regard to parking, vehicles, pets, pool use, etc.

In addition, some associations have developed architectural guidelines that establish procedures to submit requests to make exterior changes to your home. These rules and guidelines are set up to maintain the aesthetic value and integrity of the community and to protect that market value of your investment. Such changes that may require prior approval include, but are not limited to, patios, decks, landscaping, pools, hot tubs, fences, exterior color changes, etc. Requests to any exterior changes must be submitted to the Board of Directors and receive written approval prior to the commencement of work. Violations of these rules or failures to receive Board approval may result in action by the Board of Directors and a fine.