ABA Family Legal Guide

Home Ownership

Shared Ownership: Condos and Condominiums

How does a planned community work?

A planned community is a hybrid subdivision combining certain aspects of cooperatives and condominiums. In these developments, each owner holds title to a unit--in many cases, a single-family, detached house. But all common areas, such as parks and playgrounds, belong to the incorporated homeowners' association, which all owners are required to join. The association is responsible for maintaining common areas and, in some cases, house exteriors. Homeowners pay a periodic assessment for common area expenses and reserves.

Some planned communities include sections organized as condominiums or cooperatives. Others include commercial or even industrial areas, designed to allow people to live within walking distance of stores and work. Some of these developments are huge--such as Reston, Virginia, a planned community of nineteen thousand units. Further, several adjoining community associations may belong to a master association, which charges an additional assessment to pay for certain community-wide services. The master association may also be known as an umbrella association, a master planned community, or a mixed-use association.