Common Property vs. Limited Common Property in HOAs

October 10th, 2019

When you’re helping to run an HOA, it’s important to know about the two different kinds of property that every HOA has:

Common property is designed to be used by everyone who lives in the HOA. Examples of common property include tennis courts, fitness centers, and playgrounds.

Common property characteristics:

      • Used by more than one owner
      • HOA maintains, repairs and improves these areas through regular or special assessments
      • Owners cannot alter, use exclusively, or otherwise interfere
      • HOA can make decisions impacting these common areas
      • HOA has the right to use, limit, or modify common areas according to the CC&Rs (Covenants, Conditions & Restrictions)

Limited common property (LCP) is owned by someone and used exclusively by them. For example, in a single-family home in an HOA, the interior and exterior are LCP. In condominium HOAs, only the interior space is LCP. Examples of LCPs include windows, balconies, and driveways.

Limited common property characteristics:

      • Used by only one owner
      • The owner must maintain the property and pay for repairs, but the HOA can elect to do this and charge the owner the cost
      • The owner can alter, use exclusively, but modifications may require HOA approval
      • HOA can make decisions impacting the LCP, but only when done uniformly to all owners (i.e. rental/leasing rules, noise, and other Rules and Regulations topical items)’
      • The owner can sell, transfer, or otherwise legally use the LCP

The line between common property and LCP can be hazy.
This is especially true when the HOA homes are connected, as is the case with condos and townhomes. And when the line isn’t clear, confusion and conflict can arise between homeowners and the HOA.

For example: Let’s say a common area is close to an owner’s home—maybe a patio right outside the backdoor. The owner might mistakenly assume it’s their exclusive property. They set up a table and chairs for their family to use, and get upset when other residents claim it for a weekend barbeque. But the homeowner is in the wrong. If the HOA has designated a space as common property, anyone living in the HOA can use it.

To avoid misunderstandings like this, get clear about the property types in your HOA, and who’s responsible for what:

Area Is it common property? Is it limited common property?

Who is responsible for maintaining this area?

 Who pays for maintenance and renovations?
Interior of home No Yes Owner Owner or HOA, which will charge back to the owner.
Exterior of home Yes It depends. Patios/balconies/decks or other exterior items serving only one unit may be considered Common Property used exclusively by the property owner.

HOA, which then charges the fee to the owner through regular or special assessments.

 Owner or HOA, which will charge back to the owner.
Amenities (i.e. parking lot, pool, tennis court) Yes Typically no, but parking stalls or storage units in condominium buildings can be LCP used exclusively by the homeowner.

HOA, which then charges the fee to the owner through regular or special assessments.

 Owner or HOA, which will charge back to the owner.
Grounds/landscape Yes Typically no, but some HOAs with townhomes or single-family homes assign landscaped areas exclusively to owners, making them LCP.

HOA, which then charges the fee to the owner through regular or special assessments.

 Owner or HOA, which will charge back to the owner.

Windows/doors

 It depends. In multifamily HOAs (condos, attached properties or converted apartment buildings) windows and doors may be considered common property. Generally yes. Exceptions do apply for multifamily HOAs. Owner, unless windows are doors are considered common property, in which case the HOA pays. HOA usually pays for regular maintenance and cleaning on the exterior. Owners usually need to pay for major repairs or replacement.

 

Understanding which areas in your HOA are common property and which are LCP is fundamental to running an HOA well.  The information in the above table is just a general guide! For the rules and regulations of your particular HOA, it’s important to read your HOA’s CC&Rs.

 JSP Toolbox is an online suite of tools and resources that empowers homeowner associations (HOAs) to manage themselves, easily and affordably. Learn more about JSP Toolbox

Posted In: