homeowners association
(1) Homeowners association The term “homeowners association” means an organization which is a condominium management association, a residential real estate management association, or a timeshare association if— (A) such organization is organized and operated to provide for the acquisition, construction, management, maintenance, and care of association property, (B) 60 percent or more of the gross income of such organization for the taxable year consists solely of amounts received as membership dues, fees, or assessments from— (i) owners of residential units in the case of a condominium management association, (ii) owners of residences or residential lots in the case of a residential real estate management association, or (iii) owners of timeshare rights to use, or timeshare ownership interests in, association property in the case of a timeshare association, (C) 90 percent or more of the expenditures of the organization for the taxable year are expenditures for the acquisition, construction, management, maintenance, and care of association property and, in the case of a timeshare association, for activities provided to or on behalf of members of the association, (D) no part of the net earnings of such organization inures (other than by acquiring, constructing, or providing management, maintenance, and care of association property, and other than by a rebate of excess membership dues, fees, or assessments) to the benefit of any private shareholder or individual, and (E) such organization elects (at such time and in such manner as the Secretary by regulations prescribes) to have this section apply for the taxable year.