Common-interest development

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Petr-&-Fevronia

Common-interest development (CID) refers to a type of real estate development in which individuals own or lease a unit or lot within a larger property and share ownership or control over common areas and amenities. These developments are governed by a set of rules and regulations, typically enforced by a homeowners' association (HOA), condominium association, or cooperative board.

Types of Common-Interest Developments

There are several types of common-interest developments, including:

• Condominiums
• Cooperatives
• Planned unit developments (PUDs)
• Townhouses

Condominiums

In a condominium, individuals own their units outright and share ownership of common areas such as hallways, pools, and recreational facilities. The HOA is responsible for maintaining these common areas and enforcing community rules.

Cooperatives

In a cooperative, residents do not own their individual units. Instead, they own shares in a corporation that owns the entire property. The number of shares owned typically corresponds to the size of the unit. The cooperative board manages the property and makes decisions on behalf of the residents.

Planned Unit Developments

A planned unit development (PUD) is a type of common-interest development that includes a mix of residential, commercial, and recreational properties. Residents own their individual units or lots and share ownership of common areas and amenities.

Townhouses

Townhouses are multi-story homes that share one or more walls with adjacent units. Residents own their individual units and may share ownership of common areas such as gardens, parking lots, and recreational facilities.

Governance

Common-interest developments are typically governed by a homeowners' association (HOA) or similar entity. The HOA is responsible for enforcing the community's rules and regulations, maintaining common areas, and managing the community's finances. The rules and regulations are outlined in the community's Covenants, Conditions, and Restrictions (CC&Rs).

Benefits and Challenges

Benefits

• Shared amenities such as pools, gyms, and parks
• Maintenance of common areas
• Community events and activities
• Enhanced security

Challenges

• Monthly or annual HOA fees
• Restrictions on property use and modifications
• Potential for conflicts with the HOA or other residents
• Risk of special assessments for unexpected expenses

See Also

• Homeowners' association
• Condominium
• Cooperative housing
• Planned unit development
• Townhouse
• Covenants, Conditions, and Restrictions