Differences between a homeowners' association and a housing cooperative. What is the difference between HOA and TSN and housing cooperative: what is the difference, what is it and what is better. Do they have jobs and how are they paid?

Whether it would be better to choose a homeowners' association (HOA) as a form of management of an apartment building (MKD), or to prefer a housing construction cooperative (HBC), depends primarily on whether it is planned to first build a house together, or whether we are talking about already ready. For the first case, a cooperative was invented, and for the second, a partnership is suitable. And both options are useful if the owners plan to manage the house themselves, otherwise it is better for them to turn to the services of a management company.

Basic Concepts

In addition to the management of apartment buildings by professionals from management companies specifically designed to deal with this, residents themselves can take it into their own hands by forming their own organization. Most often this is an HOA, but there is another option - a housing cooperative. Of course, there are differences between them that make one organizational form preferable and some another.

It is a non-profit association, functioning as a legal entity, having a clearly structured internal structure and governing bodies: a general meeting in charge of the most important issues, and for current affairs, electing a board and chairman from among the members of the partnership, and an audit commission to check their work.

An HOA is formed by the decision of the owners if they want to manage the joint property themselves, without relying on the management company. It is created at a general meeting of owners if the majority of the total composition votes for it - which means that not all homeowners in the house may be in the partnership, but the majority of them must be in it, otherwise the HOA will not have the rights to manage it.

After the creation of the HOA, it will deal with the economic issues of the apartment building and the management of common property. And unlike the housing cooperative, the HOA is created after the ownership of the house has been formalized.

Organized for the purpose of building housing and then operating it. There have been many scandals with housing cooperatives related to their bankruptcy, as a result of which buildings simply remained unfinished, and members of cooperatives lost money. This happened due to the imperfection of legislation in this area, which is why in recent years it has been refined in the direction of tightening so that there are no loopholes for the so-called construction pyramids and other ways of deceiving citizens.

But this tightening, in addition to the positive effect, has also led to the fact that housing cooperatives have become more difficult to organize, and now this form can in many ways be considered outdated. So, if in the early 2000s the share of houses built with the help of housing cooperatives was about 5%, now, according to various sources, it ranges from 0.5 to 1%.

New housing cooperatives have practically ceased to form, but many of those that formed earlier and successfully completed the main task - building a house, continue to function, managing it.

Legal aspect

Both HOAs and housing cooperatives must work in accordance with the legislation of the Russian Federation, and the main document regulating their activities is the Housing Code. It discusses in detail how these organizations should be created, function, and be controlled by residents.

Section 6 of the code is devoted to the HOA, which includes 18 articles, which discuss all the main nuances of the functioning of this form of management of apartment buildings, from preparation for its creation, to checking the work of the board by the audit commission, replacing the board with residents, reorganization and dissolution of the HOA.

Housing cooperatives are fully devoted to Section 5 of the Housing Code, which includes Articles 110-134, which also discusses almost all the important details related to this form of management and the legal status of members of cooperatives. Such an abundance of articles allows us to say that in ordinary cases it is enough to focus specifically on the housing complex, which comprehensively describes all the main situations associated with both HOAs and housing cooperatives.

But their activities are also regulated by the Civil Code and a number of other legislative acts, which usually do not need to be specifically addressed. In addition to external regulation, both the partnership and the cooperative must have their own charters, containing additional important provisions relating to them - the charters are written and adopted by the members of these organizations themselves, so this can be called self-regulation. The charters should not contradict the law, but otherwise they may contain a variety of instructions beyond those given in the Housing Code.

MKD management forms

Homeowners in apartment buildings can choose their preferred form of management. True, the housing cooperative cannot be chosen after construction; a choice should be made in its favor at an early stage - but otherwise the choice is free.

There are several options:

• Management Company;
• HOA;
• direct control;
• Housing cooperative.

The choice can often be difficult for property owners as all options have advantages and disadvantages. So, if you turn to the services of a management company, then its specialists will completely take over matters related to apartment buildings, and apartment owners will not have to worry - just gather for annual meetings to learn about the work done during this period. And not everyone bothers themselves like that.

Employees of the management company can pursue their own interests that run counter to the interests of the residents of the apartment complex: sign unfavorable contracts for them, reduce the quality of service, save on purchased materials and landscaping of the local area.

It turns out that the disadvantage of this form, which for some is an advantage, is the small participation in the management of the residents themselves, which boils down to changing the management company if the work of that company has become very bad. And even that is difficult to do, since residents are usually disorganized and are accustomed to letting things take their course.

For houses with more organized and active residents, if they have experience in management, an HOA is better suited. Having organized a partnership, they will manage the apartment building themselves - they will have to decide on their own the signing of contracts with suppliers, carrying out repairs, landscaping the territory and other issues. This will allow you not to spend money on wages for the management company’s employees, and in general this form shows itself to be more economically efficient. However, not always, but only if the board of the partnership copes well with its tasks - for this it must consist of competent people who are ready to spend their time on this.

With direct management, no board is elected by the residents at all, and there is no management structure - all residents take on the functions that in previous versions were performed by the management company and the HOA. Therefore, direct control is used only in small houses, where there are few apartments - preferably within a dozen. In large ones it shows itself to be ineffective; in them, in any case, a clear organizational structure is required.

Housing cooperatives unite to build an apartment building, but then the cooperative can also engage in its operation. All its members will participate both in the construction and in the subsequent management of the house; in general, its structure is similar to a partnership - it also has a charter, a board, and an audit commission.

But if not all owners of apartments in a building may be part of a partnership, a majority is sufficient, then the members of the housing cooperative are everyone who owns living space in an apartment building. After all, here the principle is the opposite, and first a cooperative is formed, and the house is built with its efforts. At the same time, the number of members of the cooperative cannot exceed the number of individual premises whose construction is planned. Note that in addition to housing cooperatives, there are also residential complexes - the absence of the letter “c” here indicates the fact that such cooperatives do not engage in construction, but purchase housing and then manage it.

Main differences

And despite all the similarities, there are a number of features between HOAs and housing cooperatives regarding the goals, the organizational and legal form used to achieve them, and, as a consequence, the membership model. They also have different restrictions when conducting business activities. You should consider the differences between HOAs and housing cooperatives in more detail in order to make an informed and informed choice between them, if necessary.

Purpose of creation

In the future, after construction, it can also be involved in its management. The purpose of creating an HOA is to manage an apartment building; it is not involved in the construction of residential buildings.

Organizational and legal form

The housing cooperative management has the following structure:

• the meeting of owners is the main decision-making body, but if the cooperative has more than fifty participants and the corresponding clause is in the charter, then a conference is held;
• board – elected by the meeting of owners;
• Chairman - selected from among the members of the board either by the board itself or by a meeting of owners;
• is not built into the board structure, but must be checked externally by an audit commission.

In this regard, the structure of the HOA is practically no different, except for a couple of nuances: the absence of a conference, and also the fact that the HOA has a chairman, but is not formally included in the management bodies.

The most important difference is that the LCD regulates in detail procedural issues, as well as the rights and obligations of HOA members, but for cooperatives there is no such detailed regulation. This means greater freedom of maneuver in the housing cooperative charter compared to the HOA charter, and much broader opportunities for determining the procedure for making decisions.

Another difference is that in a housing cooperative, each participant has one vote, but in an HOA, votes are counted based on the share of the citizen’s living space in the total area of ​​the house, therefore, the weight of the votes will vary.

The voting itself in housing cooperatives must be open; there is no provision for the possibility of conducting it secretly or in absentia - in HOAs it is.

If apartment buildings can come under the control of a homeowners association, and the partnerships themselves can merge with each other, then in the case of housing cooperatives the status is fixed. An already constructed house cannot come under the control of a housing cooperative operating in a neighboring building, or even a newly formed one of its own; two housing cooperatives cannot be combined into one.

Organization membership

In a housing cooperative, the minimum number of members is 5 people, the maximum is limited by the number of residential premises in the building. When a housing cooperative is formed, all future owners of living space in the house will be members of it - after all, the cooperative is created for its construction. That is, a housing cooperative must be formed with the full consent of all citizens who will build a house, and everyone will become a founder.

In this regard, different principles apply to the partnership due to the fact that it is formed in an already completed building - it is enough for more than half of the owners to join it so that the HOA can begin to manage the building. As for leaving organizations, he is free in both cases.

Economic activity

Both HOAs and housing cooperatives are non-profit organizations. However, their status in this regard cannot be called equal. If organizations receive income from economic activities, then the HOA can use these funds exclusively for certain needs of the apartment building, but for housing cooperatives the opportunity to distribute income among the members of the cooperative in equal shares is available.

Thus, the housing cooperative actually occupies an intermediate position between a non-profit and a commercial organization, and the rules established in Federal Law No. 7 “On Non-Profit Organizations” do not apply to it. Instead, housing cooperatives are subject to the provisions of the Civil Code on consumer cooperatives.

What is the difference

It turns out that the HOA exercises control over the improvement of only residential real estate and then mainly MKD - an apartment building.

And TSN carries out measures to improve, protect and maintain both residential and non-residential premises. The goals, functions and objectives of such an organization are similar to the goals and objectives of the HOA, but in scope they are more extensive and broader.

Therefore, some HOA may well be part of the TSN, or residents may completely abandon the association of the HOA in order to join with their meeting the TSN - a larger institution that can also resolve issues of apartment buildings, and not just land, garage, warehouse, dacha and other needs.

For a brief analysis of the similarities and differences between the two forms of existence of public organizations of real estate owners, we can consider the summarized table of data characterizing both directions of the Partnerships:

Note! The activities of both types of management forms must necessarily be conducted on the basis of the Charter.

But TSN has the opportunity to introduce any necessary additional executive structures. For example, this could be a service for repairing electricity in houses and buildings, and everything connected with it.

Choosing an organizational form

All organizational forms have pros and cons, and each manifests itself most effectively in certain circumstances, so the main thing is to take these circumstances into account and make the right choice based on them. To do this, you should focus on a set of criteria.

At the same time, we note that the main choice is often between the management company, on the one hand, and the housing cooperative or HOA, on the other. Since the last two organizations are similar in many ways, and the main difference between them is the original purpose for which they are created, there is usually no choice here. If you need to first build a house, then it’s a housing cooperative, and if you just need to manage an existing one, it’s a homeowners’ association.

Criteria

The first criterion is the goal pursued by the organization. The housing cooperative allows one set of actions, the HOA another, the management company a third, and let’s not forget about direct management. Based on what actions the residents are ready to take with the apartment building, what amount of authority they intend to entrust to professionals and not deal with it themselves, it is worth choosing an organizational form.

Other criteria are directly related to this - the initiative and competence of residents in matters of managing apartment buildings. If no one is ready to take responsibility and spend time on MKD affairs, or does not have the appropriate skills, then it will be difficult in an HOA, and even more difficult in a housing cooperative. In such cases, the cases are transferred to the management company.

An important factor is the size of the house. If it consists of several apartments, then direct management will be an effective form; if it is large, a structured structure will be required.

The presence of additional income-generating objects - for their operation and distribution of income, it is convenient to preserve the housing cooperative; otherwise, it may be easier to dissolve the cooperative and create an HOA, or switch to direct management.

To manage apartment buildings, various types of associations of people who live in such buildings or own residential or non-residential premises are created. Quite common forms of management organizations include homeowners' associations (HOAs) and housing-construction cooperatives (HBCs).

A homeowners' association is currently the most common form of management of an apartment building, which involves the provision of services for maintaining common property in one or more buildings. This form is regulated by the provisions of the Housing Code of the Russian Federation.

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A housing construction cooperative is also a form of management of an apartment building. However, this form of management is created even at the stage of construction of a specific house, since in accordance with the current legislation (with the exception of the Housing Code of the Russian Federation) it is taken into account as a developer.

What is the difference between a homeowners' association and a housing cooperative and a housing cooperative: which is better, pros and cons, comparison table

It was previously stated what HOA and TSN are. We can make an unambiguous conclusion that these are two varieties of one form of non-profit associations - consumer cooperatives. A housing construction cooperative differs significantly from them.

This is legal. a person whose purpose is not to own and manage common property, but to create such property, in this case, residential apartment buildings.

To clarify this issue more specifically, you can provide a comparative table and identify the pros and cons of each of these formations:

Thus, despite the differences between these organizations provided for by law in Russia, they are in many ways similar.

Similarities and differences between housing cooperatives and homeowners' associations

What is a homeowners' association

HOA as an acronym stands for homeowners' partnership.
This is a non-profit organization that is created to manage residential premises in an apartment building. This is one of the forms of managing common property on a par with, for example, a management company. This is a legal entity, the procedure for creating which is regulated by civil law. In order to create an HOA, you need to hold a general meeting of residents, which must be documented in writing. Otherwise, the registration authority will not approve the creation of this legal entity. faces.

The difference between a management company and an HOA is that the first is a professional commercial company, and the second is a non-profit association. She does not have the right to engage in business. She can rent out property and otherwise receive small profits and spend it only on the needs of this non-profit association.

The main differences between an HOA and a management company:

The procedure for transforming a housing construction cooperative into a homeowners' association

If the owners of premises in an apartment building have decided that there is no longer a need for a housing construction cooperative, they can create any form of management. The most important stage in the transformation of housing cooperatives into HOAs will be the holding of a constituent meeting.

constituent Assembly

This meeting must be prepared in advance. A notification about its holding is placed in places where information is provided in advance in order to inform all members of the cooperative about the urgent issue of changes in the activities of the service organization. Notification can be made in the form of an announcement on specially designed boards . Additionally, such information can be posted on the official website of the cooperative, if there is one, as well as in the GIS Housing and Communal Services.

Such a protocol is subject to certain requirements, including the mandatory presence of a voting sheet on the issue raised. At the same time, all its members must vote for the liquidation of the cooperative, and fifty percent plus one vote of the total number of owners of premises in an apartment building is enough to vote for the creation of a partnership . The counting of votes is carried out without fail only taking into account the areas of residential and non-residential premises that are owned by voting persons (the larger the area, the more votes).

The procedure for the liquidation of housing cooperatives and the creation of an HOA

If a positive decision is made on the need to carry out a transformation procedure, it will be necessary to carry out the procedure for liquidating a legal entity in the form of a housing construction cooperative and creating a homeowners’ association.

After this, it is possible to obtain a certificate of liquidation of the legal entity and its deregistration with the tax authorities.

Registration of a new legal entity

The registration of a new legal entity can occur in parallel with the liquidation of the previous legal entity. The main condition is the correct documentation of the partnership being created, from the point of view of the current housing legislation. Otherwise, registration of a new legal entity may be denied.

The homeowners' association must begin to fulfill its immediate responsibilities within one month after the liquidation of the cooperative . This period is not specified in any regulatory act and is formed only on the basis of existing law enforcement practice. Such time frames are determined due to the fact that, otherwise, residents of an apartment building will have to choose a different form of management of their home and the common property located in it.

If you cannot create your own HOA for some reason, you can try to join existing associations through a special vote.

Here, the key condition will be the consent of not only the owners of the premises in the “undecided” house, but also in the house to which the legal annexation will take place. This feature is due to the fact that otherwise the decision made could be considered unlawful, and the very fact of annexing an apartment building to an already created homeowners’ association could be challenged, including on the basis of a specially issued court decision.

HOAs, housing cooperatives and other forms of housing management and their features

Many people didn’t know, but it turns out that cooperatives still exist today.

In the housing sector there are such organizational forms that, it would seem, should sink into oblivion.

Housing and savings cooperative, Housing and construction, Homeowners' Association.

The legislation of the Russian Federation has been worked out in the housing issue to the smallest detail, but what to do, sometimes, is not always clear.

How not to get confused and choose the right direction? Let's try to figure it out in this article.

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Types of housing cooperatives

All of the above forms of government can refer to non-profit organizations. Non-profit organizations do not aim to make a profit . As a rule, they are organized to achieve different goals:

In this case, we are talking about competent management of real estate. However, such associations of residents as homeowners' associations, housing cooperatives and others can receive income from the rental of non-residential premises that they own. For these tasks, there are three types of cooperatives:

1. 
   A housing savings cooperative (HSC) is a consumer cooperative created as a voluntary association of citizens on the basis of membership in order to meet the needs of shareholders in residential premises by combining members with share contributions. (according to Federal Law 215 as amended on July 3, 2016 “On Housing Savings Cooperatives”).

2. Homeowners' Association (HOA) is a type of real estate owner's association, which is an association of owners of premises in an apartment building for joint management of common property in an apartment building or several buildings. (according to the Tax Code of the Russian Federation).
3. A housing construction cooperative (HBC) is a voluntary association of citizens and, in cases established by this Code and other federal laws, legal entities on the basis of membership in order to meet the housing needs of citizens, as well as manage an apartment building. (according to the Housing Code of the Russian Federation).

Is the management company identical to the housing cooperative?

Is the management company the same organization as the housing cooperative or not? From the point of view of house management, the last two organizational forms are identical. If we compare the second and third forms of housing and communal services with a management company, the difference is that the management company employs professionals who, according to the contract, are fully responsible for the management of the house , housing and utility resources, and the board members of the HOA or housing cooperative may be incompetent in these matters.

How does work work in a housing construction cooperative?

Housing construction cooperative in accordance with Art. 110 of the RF Housing Code differs from other forms of management in that it is formed at the stage of construction or reconstruction of a residential building. Housing cooperative and acts as a developer. That is, shareholders are future home owners.

The participants of the housing cooperative act as shareholders, with whose funds the construction , reconstruction, and then management of the residential building is carried out. Individuals and legal entities can join a housing construction cooperative (see Article 111 of the Housing Code of the Russian Federation). Priority for entry is given to persons who do not have their own housing and live under a social tenancy agreement.

The decision to organize is documented in a protocol. Housing cooperative also has its own Charter.

Each shareholder becomes the owner after paying for the share in full .
The share is equal to the sum of the construction cost of his apartment. Until all residents of the house pay their shares, the owner of the house is the housing cooperative. There are two ways to obtain funds to build a house:

• one-time and one-time payment for construction by all members of the housing cooperative, made in full;
• a long-term bank mortgage loan concluded with the housing cooperative bank as a legal entity is paid by all members of the housing cooperative.

Upon completion of construction, the housing cooperative assumes the functions of managing the house and becomes an association identical to the HOA.

More detailed information about housing cooperatives can be found in the video:

Differences between housing cooperative organizations and housing cooperatives and homeowners' associations

Differences between housing cooperatives according to the housing code and the organization of the HOA:

• An HOA is organized by owners to manage existing housing.
• Housing cooperative is at least 5 people. HOA – at least 51% percentage of all owners.
• The HOA consists only of the owners of residential premises.
• Shareholders of housing cooperatives are liable for part of the unpaid share.
• In a housing cooperative, unlike a homeowners' association, income from business activities (renting out premises) is distributed among the members of the cooperative.
• Any owner can receive information from the activities of the HOA.

Advantages of organizational forms

So, after all, what organizational form to choose? So:

1. The HOA is deprived of the following advantages of housing cooperatives and housing cooperatives and can only be chosen to manage existing housing. The main advantage of an HOA compared to a management company is the transparency of the costs of maintaining and repairing a home, and for utilities.
2. A housing cooperative is selected only in the case of new construction or reconstruction of an apartment building (in the case of reconstruction, you can also select a housing cooperative). Advantages:
   Shareholders buy apartments not at market prices, but at the developer’s estimated cost, which is much cheaper.
3. In a housing cooperative, unlike a homeowners' association, income from business activities (renting out premises) is distributed among the members of the cooperative.

In conclusion, I would like to note that cooperatives have now taken on a new form and are an excellent means for the construction , acquisition and management of housing. This is the best form for people with a managerial approach to their own real estate.

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What is a homeowners association?

HOA or Homeowners Association is an association of apartment owners for independent management of common property.

This organization carries out its activities through governing bodies and meetings of participants.

If necessary, the HOA may involve outside organizations , for example, a management company. Most often to provide the residents of the house with utilities.

Main features of the homeowners association

Important!
According to the law, a homeowners association (hereinafter referred to as the HOA) cannot engage in the construction of a house. The organization is created by apartment owners after the facility is put into operation and documents for ownership are completed. One HOA can unite apartment owners of several buildings. To form an HOA, more than half of the apartment owners must join it. He is responsible for the maintenance of common areas and landscaping. Residents who purchased apartments in an already built building, or former members of the housing cooperative, can join the partnership.

• repair and reconstruction of common areas;
• house reconstruction;
• acquisition of land plots;
• construction of buildings on the local area.

For this purpose, a general meeting of all apartment owners is held. Everyday issues are decided by the elected board of the HOA, headed by the chairman.

What is the difference between a housing cooperative and an HOA?

The main difference between HOAs and housing cooperatives is the purpose of their creation.

An HOA is created solely for the management of an apartment building, while the primary task of a housing cooperative is construction work.

However, after the building is put into operation, the housing cooperative can continue its activities, controlling its maintenance. Often, after completing its task of managing an apartment building, the cooperative is reorganized into a HOA.

These legal entities are non-profit organizations that do not receive profit from their activities.

They can use common property to generate a certain income, but they are allowed to spend it only on the needs of the residents of the house. Also, the income of a partnership and cooperative includes membership fees from participants.

Homeowners' associations and housing cooperatives are required to keep accounting records. The main task of an organization's accountant is to draw up plans, formulate a budget and report activities. The financial policy of the partnership is influenced by the income and expense budget.

The accountant should describe the expenditure part in especially detail, indicating:

• payroll expenses;
• payment of necessary taxes;
• overhead expenses;
• maintenance of apartment buildings and surrounding areas;

• 
  funds allocated for major repairs, formation of a reserve fund, etc.

In housing cooperatives, expenses for construction work are added to expenses.

Also, the organization’s accountant is required to choose a taxation system, whether based on the simplified tax system.

The simplified tax system is most often used, as it allows you to get tax benefits.

Disclosure of information to HOAs and housing cooperatives

Such organizations are obliged to provide residents of apartment buildings with the necessary information, even if they are not their members. The list of this information is contained in PP No. 713.

The organization managing the apartment building is obliged to provide the following information:

• general information about the association;
• the purpose of your activity;
• terms of provision and prices of various services;
• housing and communal services tariffs.

To obtain information, the interested party must make a formal request. It must contain the following items:

• 
  sender details;

• name of the association;
• the official to whom the request is sent (usually the chairman);
• information that interests the requester.

The document can be delivered in person or sent by registered mail. If an organization refuses to disclose information, the interested person has the right to contact the housing inspectorate.

The main differences between housing cooperatives and homeowners' associations

Table of differences between HOAs and housing cooperatives:

Joint management of common property by residents

Joint acquisition, construction or renovation of apartment buildings

If a building is being reconstructed, both associations can be developers

The decision is made by the apartment owners. A protocol is being drawn up

The founders make the decision. A protocol is drawn up.

More than 50% of the total number of residential premises owners

No less than 5 people and no more than the number of apartments

Deadlines may be determined by the Charter

Individuals over 16 years of age or organizations

General meeting, board, chairman, audit commission

General meeting, conference, board, chairman, auditor

The right to participate in a partnership arises along with the right of ownership

Carried out on the basis of an application

Another significant difference is the management of HOAs and housing cooperatives. As you can see, both structures have pros and cons, so it is quite difficult to unequivocally answer the question: “Which is better housing cooperatives or housing cooperatives?”

The difference between a HOA and a housing cooperative

What is better: HOA or housing cooperative? Each of these forms, which is established by residents, is intended to provide care for the residential building and help in resolving housing issues. At the same time, it is important to understand the differences between HOAs and housing cooperatives. Despite the fact that, in essence, these abbreviations define similar organizations, there is a significant difference that will be reflected in various aspects of both the organization and the activities of HOAs and housing cooperatives.

What it is

• organizational and legal form;
• constituent papers;
• the purpose of forming the organization;
• formation methods;
• deadlines;
• members of organizations;
• features of carrying out economic activities.

These characteristics will determine the similarities and differences between HOAs and housing cooperatives, and also reflect the essence of the activities they carry out.

In any form that would be used to create this kind of organization, the main direction of activity is focused on ensuring the rights that each of the residents of the house has, be it multi-storey buildings or private sectors. However, it is necessary to understand that the first option, namely the HOA, is more productive and covers a wide range of possibilities, while the housing cooperative is completely outdated and in some situations is not even used.

Correlation and similarity

If we talk about housing cooperatives and homeowners' associations as two independent organizations, then it is important to understand that each of them affects the same area, namely the housing area of ​​relations between citizens. That is why a partnership and a cooperative can be correlated with each other, but in practice this rarely happens, which is caused by a number of differences determined on the basis of the criteria and characteristics of each individual form.

So, the law defines a clear procedure for creating any type of organization, including when it comes to non-profit entities existing in the form of cooperatives or partnerships. All this is regulated by civil law. Speaking specifically about such options as HOAs and housing cooperatives, it would be appropriate to add to the legal framework the Housing Code, which directly establishes rules for participants in such organizations and their founders.

Despite the fact that in most cases, residents independently decide to create and regulate such organizations, there must be strict adherence to the law, otherwise they may be subject to various types of liability.