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Understanding the Relationship between Master and Underlying Associations

“larger” association that manages and administers the common area for the benefit of the members of all “smaller” associations. Such “larger” association is the master association, while the “smaller” associations are the underlying associations.

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A “smaller” association may be one or more condominium associations, and may include one or more common interest community associations. Also, members of a master association could include members of a “smaller” association and owners of single family homes who are not members of a separate “smaller” association.

It would seem then that the development project is akin to a “kingdom” and the individual associations are akin to a “fief”. However, it is not yet apparent whether a master association encompasses the “kingdom” or whether it is another “fief” or something else. Our adventure presses on.

As Section 18.5(a) indicates, the master association exercises powers on behalf of the underlying associations

for the benefit of their members, which powers generally cannot be exercised by the underlying association. Typically, the property subject to the master association is different from the property subject to any one of the underlying associations. For example, there may be a private road system throughout the development project used by members of all underlying associations. Or, there may be a retention pond for water management purposes benefiting the underlying associations. Such road system or retention pond is the type of property that could be subject to a master association. However, a master association may have some control over property or structures also subject to an underlying association. For example, a master association could be vested with architectural control over properties subject to the underlying associations in order to maintain aesthetic continuity throughout the development project.

Of course, to fund the services provided by the master association, its members must pay assessments. Depending on the master association’s declaration and