Developers often build a large development in phases. They construct the initial development and record a Declaration of Covenants, Conditions and Restrictions (CC&Rs) against the land. A homeowner association is created and a board of directors appointed by the developer. Once the development has sold to a certain point, they will build another phase or group of homes and add them to the association by means of annexation.

To accomplish the annexation, the original CC&Rs must include a provision authorizing annexations. Each additional phase becomes subject to the CC&Rs of the original subdivision once it is annexed into the association and buyers of units/lots in the annexed phase automatically become members of the association. The annexed development records a document called a Notice of Addition, Notice of Annexation, or Supplemental Declaration referencing the original CC&Rs and describing the property being added to the original development.