Lake associations are flexible and work well for carrying out low-cost activities. Volunteer organizations have difficulty supporting expensive, long-term projects. The work often falls on the shoulders of a few dedicated volunteers. Homeowner associations can be created when a subdivision is built, and require each landowner to join the association and abide by its covenants. Lot assessments provide funds for the organization.
Homeowner associations are permanent organizations with dedicated sources of funding.
Once adopted, covenants are not easily modified. Actions depend on an active association board. Lake management districts are special voluntary public entities created through a vote of property owners and ratified by a county council. They are funded by property assessments within the district boundary. Lake management districts have clearly outlined decision making processes and flexible rate structures that sunset automatically.