mutual benefit corporation
See also Index, water company.
A mutual benefit corporation is a nonprofit corporation:
(a) that issues shares of stock to its members evidencing a right to receive distribution of water or otherwise representing property rights; or
(b) all of whose assets are contributed or acquired by or for the members of the nonprofit corporation or their predecessors in interest to serve the mutual purposes of the members.
An HOA does not generally issue shares of stock representing property rights. Any shares issued by an HOA typically simply represent membership rights in the association. But, an HOA's assets are typically contributed by the members of the association (via assessments) to serve the mutual purposes of the members (operation of the association, maintenance of common property, etc.). So, an HOA that is a nonprofit corporation and all of whose assets are contributed or acquired by or for the members of the association to serve the mutual purposes of the members is a mutual benefit corporation.
(For reference: 57-8 is the Condo Act, 57-8a is the Community Association Act, 16-6a is the Nonprofit Act)