What does a Homeowners Association do?

What Is an HOA and Is It Right for You?

An HOA, meaning Homeowners Association, strives to protect and improve property values for those living in the community. They do this by enforcing restrictions on what homeowners can and cannot do and guaranteeing the maintenance and upkeep of common areas.

Currently, 58% of homeowners are HOA members, and that number continues to grow.

What Does HOA Mean?

HOA stands for Homeowners Association. An HOA is a non-profit organization made up of volunteers and a governing body that makes and enforces rules for a subdivision of homes, condominium complexes, or planned unit development.

What are HOAs supposed to do?

HOAs are designed to maintain a community’s aesthetics and amenities. This can help raise property values to protect your investment. They also manage community finances to create new services and facilities and maintain existing amenities. Finally, they make and enforce community rules to help keep the community’s appearance and quality of life.

Are HOAs good or bad?

They are great for homeowners seeking community amenities and low-maintenance common areas. If you are willing to follow the rules and appreciate that your neighbors share similar goals, HOAs can be an effective tool. If you want more freedom and flexibility, an HOA may not fit your lifestyle.

What’s the difference between community and housing associations?

A community association is a general term used to describe a non-profit organization that manages services and regulations for condominium owners, cooperative housing owners, or homeowners in a planned community.

A condominium association manages the entirety of the building and property. Owners pay dues to the association for building maintenance as well as significant projects and updates.

A housing cooperative, like a condominium, is a shared building with individual units and common areas. However, in a co-op, the owners own a share of the building. They lease rather than own their specific unit. The lease payments cover the mortgage, insurance, taxes, and maintenance.

A homeowners association manages the shared land and amenities in a planned unit development. The homeowners own the lot on which their house sits but do not own the common ground.