The organization used to operate and manage the common interest development is statutorily referred to as the community association and is commonly called a homeowners association or an owners association. Under California law, a common interest development must be managed by an association, which may be incorporated or unincorporated. An association, regardless of whether it is incorporated, may exercise the same powers as a nonprofit mutual benefit corporation under the California Corporations Code, subject to such restrictions as may be imposed by the declaration. If the association is incorporated, it must be a nonprofit corporation. The formation and existence of a large and growing number of owners associations has led to the creation of a body of law that focuses on the issues pertaining to the formation and operations of such associations.

The owners association is formed and exists for the primary purpose of managing or operating land and improvements within a subdivision for the benefit of the association members. The powers, authority, and duties of the association are primarily derived from a declaration; the covenants and restrictions in the declaration run with all of the land of the subdivision and are binding on all owners of land within the subdivision. Subsidiary documents and other organizational documents, such as articles of incorporation, articles of association, or bylaws, also establish powers and duties for the owners association. State statutes are also a source of imposed duties, obligations, and empowerment for the owners association.

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