What is a Common-Interest Development (CID)?

Common-interest developments (CIDs) is the broad name applied to condominiums, timeshares, and other types of planned developments. There is no one structural type, architectural style, or standard size for CIDs. They come in a variety of types and styles, such as single-family detached houses, two-story townhouses, garden-style units with shared “party walls,” and apartment-like, multi-story high-rises.

Despite the wide range of differences among types of CIDs, they all allow individual owners the use of common property and facilities. Owners of properties within a CID share common areas such as pools, clubhouses, parks, and more. The cost of the amenities is spread out among all owners, making them more affordable and accessible.

CIDs also provide for a system of self-governance through an Association of the homeowners within the CID, usually known as a Condominium Owners Association (COA) or Home Owners Association (HOA). When the CID is initially developed, the developer is required to incorporate (in form) a COA or HOA before any property sales. The role of the Association is to manage the CID once control is transferred from the developer.

Associations are governed from the incorporated covenants, conditions, and restrictions (CC&Rs) which are recorded when the property for the CID is subdivided. CC&Rs outline the financial budgeting guidelines for the Association to determine the dollar amount of maintenance fees for owners. Maintenance fees are normally assessed monthly.

Membership in an Association is automatic. When a person buys a lot, home, townhouse, or condominium in a common interest development, they automatically become a member of the Association.

Common-interest developments (CID) such as Condominium Owners Associations (COAs) or Home Owners Associations (HOA) are some of the fastest growing forms of housing in the world today.

LM Funding provides funding solutions to condo and homeowner associations (COAs & HOAs) to recover delinquent association dues and guaranty future association budgets using proprietary technology.