2026 Board Meetings

Mar 13, 2026 09:14 am

Community Clarification: Our HOA and 501(c)(4) Status

Our HOA operating as a 501(c)(4) does not change how our community functions, and it has saved the association a significant amount of money.

Since there has been some discussion again about our HOA being a 501(c)(4), I wanted to provide some clarification for residents. This is simply meant to provide accurate information for the community.

When this was first discussed, I was actually one of the people who had concerns about it. Because of that, I spent a significant amount of time researching what it truly means and how it impacts our community.

While I did not agree with how it was originally presented to the community, as it left a lot of confusion and required me to do more research than I should have had to at the time, the reality is that the 2022 board ultimately saved this community a significant amount of money by applying for the 501(c)(4).

Since then, the topic has been reviewed and discussed across four different boards, and none have found a reason not to continue operating as a 501(c)(4).

At this point, it has been well reviewed and consistently supported as the best financial structure for the association.

A 501(c)(4) is simply a federal tax classification for a nonprofit “social welfare organization.” It does not determine whether property is public or private.

According to the Internal Revenue Service, organizations operating under Section 501(c)(4) must promote the common good and general welfare of the community they serve. The IRS also specifically states:

“Homeowners’ associations by their very nature benefit certain individuals, typically their members.”

In other words, the “community” being referenced is the homeowners who live here and whose dues maintain the neighborhood, not the general public.

This is why HOAs commonly maintain amenities such as:

• Parks
• Greenbelts
• Playgrounds
• Walking paths

These are common areas funded and maintained by homeowners for the benefit of the community.

In Arizona, HOA common areas are also recognized as privately owned property of the association, governed by the community’s CC&Rs and managed under the Arizona Planned Communities Act (A.R.S. Title 33, Chapter 16).

For that reason, it is normal for HOA amenities to have signage such as:

• Private Property
• Residents and Guests Only
• Private Park – HOA Members Only

At the same time, there are practical realities of living in a non-gated community.

From time to time, people do come through the neighborhood to solicit. While communities can try to discourage it, door-to-door solicitation is generally protected under First Amendment rights, which means it cannot always be completely prevented. If residents prefer not to be disturbed, placing a “No Soliciting” sign on your door is often the most effective solution.

We also occasionally see people using the park who may not live here. Because we are not a gated community and do not patrol the park or check IDs, there is realistically no way to completely eliminate that.

What we will take seriously, however, is any damage to HOA property. Anyone who vandalizes or damages community property whether they live here or not will be reported and charges will be pursued.

I would also like to acknowledge and thank the 2022 board treasurer for the work that went into applying for the 501(c)(4), which ultimately helped save this community a significant amount of money.

The bottom line:
Operating as a 501(c)(4) simply allows the association to function as a nonprofit that supports the welfare of our community. It saves the neighborhood money and does not change how our community operates or how residents live here.

The goal of sharing this information is to provide clarity for the community moving forward.

This has nothing to do with the 501(c)(4) designation:
From time to time, people do come through the neighborhood to solicit. While communities can try to discourage it, door-to-door solicitation is generally protected under First Amendment rights, which means it cannot always be completely prevented. If residents prefer not to be disturbed, placing a “No Soliciting” sign on your door is often the most effective solution.