What is an HOA?

Guide to HOAs

Whether you're a new homeowner or just a homeowner new to an HOA, it can be confusing to understand exactly what your responsibilities are and how these new rules will be enforced.

A homeowners’ association, commonly referred to as an HOA, is an organization in a neighborhood, community or complex that determines and upholds a set of rules or standards for its properties and residents. HOAs are becoming increasingly popular, particularly as 55+ and 62+ developments are being built nationwide for the baby boomer generation.  HOAs exist to help maintain quality of life in these communities and protect property values for all homeowners. These associations typically charge homeowners a fee or regular dues to help with maintaining things like common areas and pools, landscaping, trash removal and other amenities.

What kind of rules does an HOA enforce?

HOAs help all homeowners remain equally responsible for shared common spaces such as landscaping, elevators, swimming pools, clubhouses, parking garages, fitness centers, sidewalks, security gates, etc. HOAs define a set of rules known as covenants, conditions and restrictions (or “rules & regs”) that all residents must follow. These vary from association to association, but guidelines generally deal with architectural features like fences, pools, porches or other exterior home features. Other common restrictions cover things such as hanging laundry outside, attaching satellite dishes and specifying exterior paint colors, and may restrict certain activities that can occur at your home or neighborhood. HOAs hold homeowners to high standards to keep communities and neighborhoods proud of their appearance.

Who makes up the HOA?

An HOA is typically made up of elected community residents who sit on a board. When you purchase a home in a community that's governed by an HOA, you automatically become a member of the homeowners’ association. Residents elect members to make up the Board of Directors. The board members tend to have regular meetings open to homeowners to discuss major issues and concerns facing the community. HOAs are governed by bylaws that dictate how the HOA will be run and spells out the process for voting, meetings, board member roles and other operating guidelines.

How are HOA rules enforced?

HOA rules are generally legally enforceable, and penalties are given when violations occur. Consequences can be severe depending on the nature and length of your violation, and can include fines, legal action, or—in the worst cases—eviction. If you openly commit a crime or break a law, the HOA can report it directly to authorities. If you're unable to or refuse to pay your HOA fees, there can be penalties similar to missing mortgage payments.

What are HOA fees?

A homeowners’ association fee (HOA fee) is an amount of money that must be paid monthly by owners, and HOAs collect these fees to assist with maintaining and improving properties in the association. HOA fees are almost always levied on condominium owners, but they may also apply in some neighborhoods of single-family homes.

Fees typically cover the costs of maintaining the building's common areas, such as lobbies, patios, landscaping, swimming pools, and elevators. The association may also levy special assessments from time to time if its reserve funds are not sufficient to cover a major repair, such as a new elevator or new roof. HOA fees can also apply to single-family houses in certain neighborhoods, particularly if there are common amenities such as tennis courts, a community clubhouse, pool or neighborhood parks to maintain.

What are the benefits of living in an HOA neighborhood?

HOAs help take care of some of the every day chores and responsibilities you would be responsible for in a non-HOA community. Chances are you won’t need to remove snow, care for your lawn or clean the pool, among other things. You can consider the monthly HOA fee as buying yourself some free time to enjoy life!