What Is A Common Ownership Community

 

A common ownership community (COC) is a group of homes with their own government and binding rules. Common ownership communities in Maryland can be condominium associations, cooperative housing associations, or homeowner associations.

• In a condominium association the members only own the insides of their units, and the association owns the basic structure of the buildings and the land.
• In a homeowner’s association the members own their homes and the land the homes sit on.
• In a cooperative housing association, a corporation owns the buildings and the land. Members buy shares, or stock, in the corporation. Usually, members are co-owners of the corporation who rent the home or unit from the corporation.

These associations vary somewhat but they all share these characteristics:

• They are all regulated by state laws.
• They are mini-democracies that depend on members’ participation for successful governance. Members elect their board of directors, which manages the day-to-day affairs of the association.
• Their members share ownership of the community property.
• Their members must pay dues, or “assessments”, to maintain the property.

Their members must obey the association’s rules and regulations, which are legally binding and can be enforced in court.

COC’s members are encouraged to read their community's governing documents, specifically  the Declaration of Covenants, the Bylaws, and the Rules & Regulations, and become familiar with their specific rights and obligations. Most associations have rules that prohibit any changes to the exterior of the home, or to the lot, without permission. There might also be rules about changes to the interior of the home that might affect the neighbors.

For more valuable information:

• ​FAQs: Living in a Common Ownership Community
• “What you should know about buying a home in a condo, co-op, or HOA”
• Brief video: "COC: What is a common ownership community?"