HOA: What Every Homebuyer Should Know About Homeowners Associations

What Is an HOA?

A Homeowners Association (HOA) is an organization that manages and oversees a residential community, such as a neighborhood, condo complex, or gated development.

Its main goal is to maintain shared spaces, enforce community rules, and protect property values for everyone who lives there.

How HOAs Operate

HOAs are typically run by a board of directors made up of elected homeowners. They handle budgets, oversee maintenance projects, and ensure compliance with community guidelines.

Most HOAs have a set of rules called Covenants, Conditions, and Restrictions (CC&Rs), which all residents agree to follow upon moving in.

HOA Fees and What They Cover

Residents pay monthly or annual HOA fees to fund community expenses. These can include landscaping, pool maintenance, security, trash collection, and repairs for shared structures.

Fees vary widely depending on location, amenities, and the scope of services provided by the association.

Pros and Cons of Living in an HOA Community

HOAs can enhance curb appeal, maintain order, and offer attractive amenities like clubhouses or walking trails. They can also help protect property values.

However, the rules can feel restrictive, and fees can add a significant cost to homeownership; something to factor into your budget before buying.

How to Evaluate an HOA Before Buying

Request the HOA’s financial statements, rules, and recent meeting minutes before making an offer on a home. This will give you insight into the community’s stability and culture.

Also, talk to current residents to get a sense of whether the HOA is proactive, fair, and easy to work with or overly strict and difficult.