Most HOAs are set up as non-profit corporations. Like any other corporation, an HOA needs bylaws to set forth how the corporation will be run. In the bylaws you typically will find:
- Description of the various classes of membership and their voting rights (lots owned by a developer are often in a different class, with different voting rights)
- Provisions for calling and holding annual and special meetings of the members.
- Provisions setting forth the number, terms, and qualifications of directors
- Powers and duties of directors
- Provisions setting forth the number, terms and qualifications of officers
- Powers and duties of officers.
- Protocol for calling and holding meetings of the directors
- Provisions for the establishment of fiscal policies (budget ratification, establishment of reserve accounts, authority to hire accountants and attorneys)
- Indemnification provisions for the directors
- Protocol for amending the bylaws
- Financial provisions, such as the establishment of reserve accounts for capital projects