Decoding HOA Governing Documents: The Articles of Incorporation

The articles of incorporation, also known as the certificate of incorporation, charter, or corporate charter, is a legal document that establishes the formation of a corporation. It is a formal document that outlines the basic information about the corporation, its structure, and its purpose. In the case of a homeowners association (HOA), the articles of incorporation are the foundational document that creates the legal structure of the organization. They are typically created by the HOA’s developer or initial board of directors, and they are filed with the Secretary of State to obtain legal recognition as a corporation.

The articles of incorporation typically include the following information:

Name of the corporation: The articles of incorporation must include the legal name of the corporation, which typically includes the words “Homeowners Association” or “HOA” to indicate the type of organization.

Purpose of the corporation: The articles of incorporation must state the purpose of the HOA, which typically includes the management and maintenance of common areas, the enforcement of rules and regulations, and other activities related to the management of the community.

Location and duration of the corporation: The articles of incorporation must state the physical address of the HOA’s principal office and the state where it is incorporated. They must also specify the duration of the corporation, which can be perpetual or for a specified period of time.

Membership: The articles of incorporation must outline the qualifications for membership in the HOA, the rights and responsibilities of members, and the manner in which membership may be terminated.

Board of Directors: The articles of incorporation must specify the number of directors who will serve on the HOA’s board of directors, their qualifications, and the manner in which they will be elected or appointed.

Powers of the corporation: The articles of incorporation must outline the powers and authority granted to the HOA by the state where it is incorporated, which may include the ability to levy assessments, enforce rules and regulations, and enter into contracts.

Dissolution of the corporation: The articles of incorporation must specify the conditions under which the HOA may be dissolved or terminated, such as by a vote of the members or by court order.

The articles of incorporation are a legal document that establishes the formation of a corporation, and in the case of an HOA, they are a foundational document that creates the legal structure of the organization. They provide important information about the HOA’s purpose, structure, and legal powers, and they are a crucial document that governs the operation of the HOA.