In order for an organization to be considered a condominium management association or a residential real estate management association (and therefore in order for it to be considered a homeowners association), substantially all of its units, lots or buildings must be used by individuals
for residences.See instructions for form 1120Hhttps://www.irs
.gov/pub/irs-pdf/i1120h.pdfA homeowners association files Form 1120-H as its income tax return
to take advantage of certain tax benefits
.Definitions Homeowners association. There are three types of homeowners associations.1. A condominium management association organized and operated to acquire, build, manage, maintain, and care for the property
in a condominium project substantially all of whose units are homes for individuals.2. A residential real estate management association organized and operated to acquire, build, manage, maintain, and care for a subdivision, development, or similar area substantially all of whose lots or buildings are homes for individuals.3. A timeshare association (other than a condominium management association) organized and operated to acquire, build, manage, maintain, and care for the property that has members who hold a timeshare right to use, or a timeshare ownership interest
in, real property of the timeshare association. A timeshare association cannot be a condominium management association..So your new accountant is correct - you may not use form 1120H.