Definition
A Homeowners’ Association (HOA) is an organization in a subdivision, planned unit development, or condominium complex that makes and enforces rules for the properties in its jurisdiction. Membership in the HOA is generally mandatory. HOAs offer services that can include maintaining common areas, managing facilities like pools or parks, and enforcing community rules and deed restrictions.
Examples
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Lakefront Homeowners’ Association: All unit owners of the Lakefront Condominiums are members of the Lakefront Homeowners’ Association. The association maintains the pool, grounds, and building structure, and regulates the use of common elements. They assess each owner a $75 monthly fee.
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Sunset Lakes Homeowners’ Association: This HOA governs a residential development with over 200 homes. The association collects dues to manage landscaping for common areas, upkeep of community parks, and organize neighborhood events such as block parties.
Frequently Asked Questions
What does an HOA do?
An HOA enforces the rules for properties and common areas within its jurisdiction. This includes maintenance of shared facilities, landscaping of common areas, and enforcing deed restrictions.
Are HOA fees mandatory?
Yes, if you purchase a property within the HOA’s jurisdiction, you become a member and are required to pay dues and adhere to the entity’s regulations.
How are HOA fees determined?
HOA fees are set by the homeowner association’s board of directors and are typically based on projected expenses for maintenance, management, and enhancements of common areas and facilities.
Can an HOA enforce rules on my property?
Yes, if the development has binding covenants, conditions, and restrictions (CC&Rs), the HOA can enforce rules and may take legal action if rules are not followed.
How can I influence HOA decisions?
HOA members can influence decisions by participating in meetings, voting, and potentially serving on the board of directors.
- Community Association: Similar to an HOA, a community association manages various aspects of a residential development, ensuring the enforcement of CC&Rs.
- Deed Restrictions: Provisions placed in property deeds requiring or forbidding specific uses of the property in question.
- Common Elements: Parts of a property or development that are used jointly by all owners, such as swimming pools, parking lots, and landscaping.
Online Resources
- Community Associations Institute (CAI): CAI provides resources and educational programs for homeowners, volunteer leaders, and professionals integral to community association governance.
- HOA-USA: HOA-USA offers comprehensive resources for HOA boards, managers, and homeowners, including state-specific information on HOA laws and practices.
- National Association of Housing Cooperatives: NAHC, which also provides a variety of resources for condominium associations.
References
- Community Associations Institute. (n.d.). Community Association Living. Community Associations Institute.
- HOA-USA. (n.d.). Understanding Homeowners’ Associations. HOA-USA.
Suggested Books for Further Studies
- “The Homeowner Association Manual” by Peter M. Dunbar
- “The Condominium Concept: A Practical Guide for Officers, Owners, Realtors, Attorneys, and Directors of Florida Condominiums” by Peter M. Dunbar
- “New Neighborhoods: The Consumer’s Guide to Condominium, Co-Op, and HOA Living” by Gary Poliakoff and Ryan Poliakoff
Real Estate Basics: Homeowners’ Association Fundamentals Quiz
### Who typically forms a Homeowners’ Association?
- [ ] The city municipality
- [ ] The initial group of homeowners
- [x] The real estate developer
- [ ] Local government agencies
> **Explanation:** A Homeowners’ Association is typically formed by the real estate developer when the development begins. The aim is to market, manage, and sell homes and lots within the subdivision.
### Are HOA fees optional for residents?
- [ ] Yes, residents can choose to pay or opt-out.
- [x] No, they are mandatory for all members.
- [ ] Only optional during the first year of residency.
- [ ] Fees depend on the usage of common facilities.
> **Explanation:** HOA fees are mandatory for all residents owning property within the HOA's jurisdiction as part of their membership.
### What is one of the primary roles of an HOA?
- [ ] Establishing local laws
- [ ] Selling homes
- [x] Enforcing community rules
- [ ] Providing legal advice
> **Explanation:** One of the primary roles of an HOA is to enforce community rules and deed restrictions to maintain property values and quality of life.
### How are HOA board members typically selected?
- [x] They are elected by HOA members.
- [ ] Appointed by the municipality.
- [ ] Selected by the real estate developer.
- [ ] Chosen by a homeowner lottery system.
> **Explanation:** HOA board members are typically elected by the members of the HOA who vote during community meetings or elections.
### Who is responsible for the upkeep of common areas in a development?
- [ ] Each homeowner individually
- [ ] Municipal government
- [ ] Third-party contractors chosen by residents
- [x] The Homeowners’ Association
> **Explanation:** The Homeowners’ Association is responsible for the upkeep of common areas, managing services such as landscaping and maintaining shared amenities.
### What document primarily governs the regulations of an HOA?
- [ ] The home purchase contract
- [ ] Local newspaper announcements
- [ ] Renter association agreements
- [x] Covenants, Conditions, and Restrictions (CC&Rs)
> **Explanation:** The Covenants, Conditions, and Restrictions (CC&Rs) are the primary documents outlining the regulations that HOA members must follow.
### Can a homeowner be fined by the HOA?
- [x] Yes, for violations of rules.
- [ ] Only by a vote of residents.
- [ ] No, they can only issue warnings.
- [ ] Only courts can fine residents.
> **Explanation:** An HOA has the authority to fine homeowners for violations of community rules as outlined in the CC&Rs.
### Who typically handles the annual budget and financials of an HOA?
- [x] The HOA board of directors
- [ ] The local government financial department
- [ ] Private accounting firms
- [ ] State housing authorities
> **Explanation:** The HOA board of directors typically handles the annual budget and financials, ensuring all common areas and amenities are funded adequately.
### What happens if a homeowner fails to pay HOA fees?
- [ ] They lose community voting rights
- [ ] They have to do community service
- [x] Liens can be placed on their property
- [ ] Their property can be immediately seized
> **Explanation:** If a homeowner fails to pay HOA fees, the association can place a lien on their property until the dues are paid.
### What allows residents to have a voice in an HOA’s decisions?
- [ ] Non-paid HOA memos
- [x] Participation in board meetings and elections
- [ ] Press releases from the HOA board
- [ ] Monthly newsletters
> **Explanation:** Residents can have a voice in an HOA’s decisions by participating in board meetings, elections, and possibly serving on the board, which enable them to influence governance and policies.
