Common Interest Development
Seven Oaks Community Association, Inc is known as a Common Interest Development (CID). It has a non-profit status (501c4) under the Internal Revenue Service because it is classified as a social welfare organization (civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare).
In 1965, there were fewer than 500 CIDs. Today, there are over 250,000. All CIDs are similar in that they allow individual property owners to use common property and facilities and provide for a system of self-governance through an association of the homeowners within the CID. The most common type of association of homeowners is the nonprofit mutual benefit corporation. This is a corporation in which the members of the corporation vote for a board of directors that run the affairs of the corporation. (Seven Oaks is a 501c4 Mutual Benefit Corporation.)
Membership in the association is automatic. When a person buys property (a home or condominium) in a common interest development, that owner automatically becomes a member of the association. The property owner is legally bound to the CC&Rs of that association.
CID Board members are volunteers who perform in trust to exercise the governing documents. The task can be challenging and time-consuming, but a successful Board preserves the financial soundness, attractive appearance, and property values of the community.
