Form Ap-206 - Application For Exemption - Homeowners' Association Page 2

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AP-206-2
(Rev.1-07/4)
SPECIFIC INSTRUCTIONS
Item 1. The filed document of record, and any subsequent amendments, that establishes the
purpose of the property usually provides the qualifications for association membership, owners’
voting rights and whether the property is held exclusively for residential use. This document and the
plat map are filed with the local county clerk’s office, and may be referred to as the:
• Declaration;
• Deed Restrictions;
• Covenants, Conditions and Restrictions, or similar titles.
To complete Item 1, take the language directly from the appropriate controlling document, which is
normally the Articles of Incorporation but may be the association’s Declaration or Bylaws. Also,
specify in Item 1 the title of the document and the specific citation from which the language was
taken.
Item 2. To be eligible for exemption as a homeowners’ association, the property must be
residential and have no commercial property within the real estate development. A condominium
project or real estate development is considered residential if the property is legally restricted for use
as residences, with no commercial use allowed.
To complete Item 2, enter the total number of lots/units as shown on the plat map for the real estate
development. The plat map should be on file with the local county clerk’s office.
Item 3. To complete Item 3, enter the total number of lots/units owned by the individual resident
owners. Do not include any lots/units owned by the declarants, developers, builders, banks,
investors or similar parties. Do not include multiple-owned lots by an individual owner, unless an
exception applies. An exception occurs when an individual owner purchases two lots to construct a
single residential structure; in that case, the adjacent lot would be considered as being owned by the
individual resident owner, and the lot should be included in the total reported in Item 3.
Item 4. To complete Item 4, enter the total number of lots not included in Item 3. Include multiple-
owned lots by an individual owner, and all lots/units owned by parties other than the individual
resident owners. Attach a list identifying these owners and the number of lots owned.
In order to qualify for exemption as a homeowners’ association, these parties cannot control more
than 49% of the association’s total votes. Majority control cannot be held by a single individual or
family, or by one or more developers, declarants, banks, investors or similar parties.
Item 5. If the answer to number 5 is yes, also complete Items 5a and 5c. If the answer to number 5
is no, also complete Items 5b and 5c. For 5a, 5b and 5c, take the language directly from the
controlling documents. If the language is not found in the declaration, then look for it in the Articles
of Incorporation or bylaws. Also, provide the title of the document from which the language was
taken.

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