Even though you live in a homeowners association, you might be surprised how many of your neighbors -- owners and renters alike -- do not really understand the fundamental nature of common-interest communities. The media and government officials also lack a true understanding of the community homeowners association (or condominium) concept.

The Community Associations Institute (CAI), a national membership organization that represents the best interests of homeowners association communities, developed 10 basic principles that answer three essential questions:

(1)  What is the basic function of a homeowners association?

(2)  What are the essential obligations and expectations of homeowners?

(3)  What are the core principles that should guide association leaders?

Learn the best practices of a homeowner's association by reading the principles below:

1.  Ensures that the collective rights and interests of homeowners are respected and preserved.

2.  Is the most local form of representative democracy, with leaders elected by their neighbors to govern in the best interest of all residents.

3.  Provides services and amenities to residents, protects property value, and meets the established expectations of homeowners.

4.  Cultivates a true sense of community, active homeowner involvement and a culture of building consensus.

5.  Homeowners have the right to elect their community leaders and to use the democratic process to determine the policies that will protect their investments.

6.  Homeowners choose where to live and accept a contractual responsibility to abide by established policies and meet their financial obligations to the association.

7.  Leaders protect the community's financial health by using established management practices and sound business principles.

8.  Leaders have a legal and ethical obligation to adhere to the association's governing documents and abide by all applicable laws.

9.  Leaders seek an effective balance between the preferences of individual residents and the collective rights of homeowners.

10.  Leaders and residents should be reasonable, flexible and open to the possibility -- and benefits -- of compromise.

Adhering to these basic fundamentals helps in creating a caring community in your homeowners association.