Wednesday June 10, 2026
The importance of understanding HOA terms
HOA terms can show up in meeting notices, budgets, rule letters, resale documents, architectural applications, and board communications. When homeowners understand what these HOA terms mean, it is easier to ask the right questions, follow the process, and participate in community decisions with more confidence.Key HOA terms to know
What is an HOA?
An HOA, or homeowners association, is an organization that helps manage a residential community. In many Maryland communities, the HOA maintains common areas, enforces governing documents, collects assessments, and supports the long-term upkeep and operation of the neighborhood.What is an HOA board?
An HOA board is the elected group of homeowners responsible for making decisions on behalf of the association. The board may approve budgets, enforce rules, manage vendors, oversee maintenance, communicate with residents, and work with the community manager to keep the association running smoothly.What is a board meeting?
An HOA board meeting is a meeting where board members discuss and make decisions about association business. This may include budgets, contracts, maintenance, rule enforcement, resident concerns, architectural requests, and long-term planning.What are HOA fees?
HOA fees, also called assessments, are regular payments homeowners make to fund association expenses. These may cover landscaping, snow removal, insurance, management, common-area maintenance, utilities, reserves, and other shared community costs.Local laws and regulations
In addition to statewide laws like the Maryland Homeowners Association Act, every town, city, and county in Maryland has its own set of codes, laws, taxes, and services — and all of these can impact your budget. Knowing these local laws and regulations can help you make the necessary adjustments to member fees.Look to expenses resulting from local fire code requirements, swimming pool testing, and local taxes, among other things. Your community management representative can help you make sense of the local landscape.
Recorded map or plat
This is a document that shows the location of all the lots in your Maryland community and other recorded property details. It’s instrumental in identifying the owner’s or community’s title to the property. The recorded map or plat is also key to assigning responsibilities for maintaining property and ascertaining whether a property is located properly. In Maryland, this document is generally filed with the county land records office through the Clerk of the Circuit Court.What are articles of incorporation?
This document, filed with the state of Maryland, establishes the association as a legal entity. The articles comprise a corporate charter that brings the corporation into existence, defines its purpose, outlines its powers, and makes clear the structure of the board.What are CC&Rs?
The covenants, conditions, and restrictions (CC&Rs), also known as the declaration, outline the rights and limitations for community members. Different common interest community types (i.e., HOA, COA, or co-op) will use different terms for these documents. But no matter what name they go by, they:- Address what property or maintenance responsibility is owned by the individual and what is owned by the community at large
- Create a relationship among all owners to each other and the community for maintaining, funding, and governing the development
- Set standards, restrictions, and obligations based on architectural control and other activities to promote communal harmony
- Create an administrative framework
- Provide transition of control of the association from the developer to the property owners.
Association bylaws
Think of these as the rules, or formal regulations. Typical bylaws identify requirements for community membership, rules of conduct at meetings, voting rights, procedures for elections, what constitutes a quorum, what board members should do, and how much power can be wielded by the board.What are HOA rules?
HOA rules are community standards that help explain what homeowners and residents can and cannot do. Rules may cover parking, trash, pets, exterior changes, landscaping, noise, amenities, and common-area use. They should work together with the association’s higher-level governing documents.Hierarchy of authority
This HOA term refers to a collection of documents that generally includes:- Recorded map or plat
- Declarations/CC&Rs
- Articles of incorporation
- Bylaws
- Rules and regulations
- And any other items necessary to the community
Community manager
A Maryland community manager is the professional hired to support the daily management of your community. Typically hired and approved by the board, he or she will help enforce bylaws, administer policies, and lend a hand with fiscal concerns — along with the management of maintenance, administrative, and clerical matters.What is a special assessment?
A special assessment is an additional charge to homeowners beyond regular HOA fees. It may be used for unexpected repairs, insurance increases, major projects, reserve shortfalls, or costs that were not fully covered by the annual budget.What is a capital improvement?
A capital improvement is an HOA term for a larger repair, replacement, or improvement that usually costs more than routine maintenance. Examples may include repaving roads, replacing roofs, upgrading lighting, repairing stormwater systems, or renovating a clubhouse.What is a reserve fund?
A reserve fund is money set aside for future major repairs and replacements. Common examples include roads, roofs, stormwater systems, clubhouses, pools, playgrounds, gates, and other shared assets that need long-term funding.What is a reserve study?
A reserve study is a planning tool that helps an association estimate the useful life and replacement cost of major common components. It can help the board decide how much to contribute to reserves each year.What is an architectural control committee?
An architectural control committee, often called an ACC or ARC, reviews homeowner requests for exterior changes. This may include fences, decks, patios, paint colors, landscaping, sheds, solar panels, windows, doors, and other visible modifications.What is a quorum?
Quorum is the minimum number of board members or homeowners who must be present or represented for official business to take place. Quorum requirements are usually found in the bylaws or other governing documents.What is a proxy?
A proxy allows one person to vote or participate on behalf of another person, if the governing documents and applicable Maryland HOA laws allow it. Proxies are often used when homeowners cannot attend an association meeting in person.What are meeting minutes?
Meeting minutes are the written record of what happened at a board or membership meeting. They usually include the date, attendees, motions, votes, decisions, and key actions assigned after the meeting.What is a common area?
A common area is property that is owned, maintained, or used by the association for the benefit of the community. Examples may include entrances, sidewalks, roads, stormwater facilities, landscaping, pools, clubhouses, trails, playgrounds, and parking areas.What is a lien?
A lien is a legal claim against a property, often used to secure unpaid assessments or other amounts owed to the association. If an owner falls behind on HOA fees, the association may have lien rights depending on the governing documents and applicable law.What is a resale package?
A resale package is a set of association documents provided during the sale of a home. It may include governing documents, financial information, assessment details, insurance information, rules, meeting materials, and other community disclosures.What is a certificate of insurance?
A certificate of insurance is a document that summarizes community association insurance coverage. Homeowners, lenders, and buyers may request it to understand the association’s property, liability, or other coverage.What is an annual meeting?
An annual meeting is a membership meeting typically held once per year. It may include board elections, budget updates, committee reports, community business, and an opportunity for homeowners to hear about the association’s priorities.What is an executive session?
An executive session is a closed portion of a board meeting used for sensitive topics. Depending on the governing documents and applicable law, this may include things like legal matters, personnel issues, or certain business transactions in the negotiation stage.What is a fiduciary duty?
Fiduciary duty means board members must act in the best interests of the association. This includes using care, acting in good faith, avoiding conflicts of interest, and making decisions based on the community’s needs rather than personal preferences.There you have it — you can now understand and use key HOA terms in your Maryland community association. For further information on how to strengthen your board member skills, contact FirstService Residential.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.