The Articles of Incorporation, also called the Corporate Charter, is a governing document that formally establishes a homeowners association (HOA) as a legal entity. This document outlines the HOA’s basic structure, purpose, and powers, and is typically filed with the state when the community is created. Most HOAs operate as non-profit corporations, and the Articles provide the legal foundation for that status.
Why It Matters for Self-Managed HOAs
The Articles of Incorporation define the HOA’s authority and legitimacy, serving as the cornerstone of its governance structure. For self-managed communities, understanding this document ensures the board operates within its legal framework.
- Legally establishes the HOA as a recognized corporation.
- Defines the association’s name, purpose, and basic management structure.
- Clarifies the board’s authority and protects the community under corporate law.
- Serves as a foundation for other governing documents, like bylaws and CC&Rs.
- Helps board members make decisions that comply with the HOA’s legal obligations.
How to Use It
“The HOA board reviewed the Articles of Incorporation to confirm the HOA’s authority to enter into new vendor contracts.”
Best Practice or Tip
- Keep a digital copy of the Articles of Incorporation uploaded in your HOA My Way document library.
- Review the document periodically to ensure board operations align with its stated powers.
- Consult your HOA My Way accountant or legal professional if amendments or filings are needed.
- Use the portal to share foundational governing documents with new board members for training and orientation.
- Maintain organized digital archives for compliance and transparency during board transitions.
