A Homeowners Association (HOA) is a private, legally incorporated organization that governs a residential community, subdivision, planned community, or condominium building. When you purchase a property within an HOA's jurisdiction, you typically become a member automatically and are required to follow the HOA's rules and pay fees. Key aspects of an HOA include:
- It makes and enforces rules that apply to all residents in the community. These rules are often spelled out in a document called the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which can cover things like home maintenance, allowable exterior modifications, landscaping, and even property paint colors.
- The HOA collects fees (monthly, quarterly, or annual) from residents to maintain common areas and amenities such as pools, parks, streets, clubhouses, or gyms.
- It is run by a board of directors or governors, usually elected from among the residents, who manage the community's affairs, enforce rules, and handle finances.
- The rules and fees are designed to maintain and improve property values and the overall quality of life in the community.
- Non-compliance with HOA rules can result in fines or other penalties.
HOAs are common in many countries including the United States, Canada, and the Philippines, and they exist to ensure that neighborhoods and developments remain attractive and well-maintained for all residents. In summary, an HOA is a community organization that manages shared spaces, sets community standards, collects dues, and enforces rules to protect property values and the neighborhood environment. Membership and fee payment are generally mandatory for homeowners within the HOA's area. This structure helps provide consistency and shared benefits but can also come with restrictions on what homeowners can do with their properties. If you buy a home within an HOA, you'll be agreeing to abide by its rules and participate in the community through fees and governance.
