What is a Home Owner’s Association (HOA)?

A home owners association (HOA) is an organization that is put together by a real estate developer when planning a new development project. This management organization sets the rules and regulations of a community and is in charge of the upkeep of common areas within a development such as pools or landscaping. 

Those who purchase property within an HOA’s jurisdiction automatically become members and are required to pay dues, known as HOA fees. Some associations can be very restrictive about what members can do with their properties. As a home buyer HOA fees are something you have to account for in your monthly budget/cost estimates.

Additionally, there may be regulations you have to follow when making changes to the property. For example, some HOA’s have rules when it comes to the types of exterior colors that are used when painting a home. Some also have rules about what style window, shingle, fence, basketball hoop can be placed on the house.

Key Takeaways

  • A homeowner association (HOA) is an organization that makes and enforces rules and guidelines for a subdivision, planned community, or condominium building.
  • The members of a homeowner association are the residents of the subdivision, community, or building; some communities require mandatory membership for individuals that purchase property in the zone.
  • Run by a board of directors, homeowner associations (HOAs) typically collect monthly or annual fees to pay for common area maintenance and the upkeep of facilities.
  • Homeowner associations (HOAs) may impose fines on non-compliant homeowners.

It is best to ask your realtor if there is an HOA upfront so you can make sure your home buying experience does not meet any unnecessary snags.

Happy house hunting!


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