A Beginner’s Guide to Understanding Homeowners Associations
Thanks to the growing desire to live in a well-maintained, organized community with shared amenities, Homeowners Associations (HOAs) have become increasingly common. Recent statistics show that over 30% of US citizens—equivalent to 75.5 million residents—live in communities governed by an HOA.
But what is an HOA, exactly, and what benefit do they provide to homeowners?
This article covers everything you need to know about HOAs, including how it works, expected fees, pros and cons, and more.
What Are Homeowners Associations?
Homeowners Associations (HOAs) are private, nonprofit, legally incorporated organizations that manage and maintain a building, neighborhood, or housing community.
HOAs carry out tasks like property management, noise restrictions, architectural guidelines, and pet policies. They also enforce community rules and guidelines known as Covenants, Conditions, and Restrictions (CC&R), which may include regulations on property appearance, landscaping requirements, and parking restrictions, among others.
In most cases, a person looking to purchase a home managed by an HOA is required to become a member, and must therefore obey the rules enforced by the organization. Some associations are strict about what members can do with their properties.
For example, some restrict modifications to exterior design (e.g., paint colors) and whether or not a pet is allowed on the property. Others are more lenient. Members who don’t follow the set rules may result in fines and, in severe cases, eviction.
What Is the Purpose of an HOA?
The main purpose of an HOA is to manage and maintain common areas and amenities within a residential community.
Among these services include snow removal, trash collection, landscaping and lawn care for common areas, and pest control.
Some organizations also include insurance coverage for shared spaces or exterior building maintenance. The cost of these services is funded by the community, and collected monthly or quarterly.
How Does an HOA Work?
The HOA is run by a board of directors, which is usually made up of elected homeowner volunteers. They’re responsible for creating budgets, hiring vendors, scheduling regular meetings, and enforcing the community’s rules and regulations that cater to the common interest of the neighborhood.
These rules are outlined in the CC&Rs, the governing document for the association, along with bylaws that outline how the association is run.
Benefits of Living in an HOA
Well-maintained Common Areas and Amenities
HOAs do an excellent job of maintaining the common areas and amenities of their communities. They keep shared spaces like swimming pools, clubhouses, parks, and sideways clean, safe, and in good condition, allowing residents to enjoy well-maintained facilities without having to tend to upkeep themselves.
Well-maintained amenities make the neighborhood look good, which in turn makes the community feel good.
Increases Property Values
Recent surveys show that