A master association sits above several individual sub-associations within a larger development, typically a common interest development (CID) with multiple neighborhoods, condo clusters, or phases. Rather than managing each sub-community's own internal streets, landscaping, or building maintenance, the master association handles what's shared across all of them — a community clubhouse, a shared entry gate, a lake, or main-road infrastructure everyone uses.
Each sub-association keeps its own board and governs its own local matters, while paying dues up to the master association for its share of the shared amenities.
Master associations typically operate with their own governing documents layered on top of each sub-association's CC&Rs, and a board often made up of representatives from each sub-community rather than direct owner elections. This structure lets large, phased developments add new neighborhoods over time without renegotiating how shared amenities get funded and maintained each time.
Builders planning a multi-phase project need to think through this master/sub-association structure early, since it affects how costs are allocated and how governance authority is divided from day one.
Disputes in master-planned communities often center on cost allocation — how much each sub-association owes toward shared amenities, and how those formulas change as new phases are added. Clear, well-drafted master governing documents that spell out allocation formulas upfront prevent most of these disputes before they start, which is far easier to get right during formation than to renegotiate later once multiple sub-boards are already established and have competing interests.
