A homeowners association (HOA) is an organization that makes and enforces rules for the properties within its jurisdiction.
HOA’s members will have to and are required to pay dues. Some associations can be very restrictive about what members can do with their properties.
Homeowners associations (HOAs) are formed by planned communities with single-family homes or multiple units, such as condominiums.
There are actually certain properties that require becoming a Home Association member in order to purchase them An HOA is typically established to make and enforce rules regarding the properties within the jurisdiction. Most HOAs are incorporated and thus subject to state laws.
Homeowners associations can also have significant legal power over the property owners in their jurisdiction. There will be a set of rules in a document called the Declaration of Covenants, Conditions and Restrictions (CC&Rs), which set certain conditions on owners and their properties. The conditions may include structural restrictions such as the type of fences or landscape allowed, or minor selections such as the color of paint on a house. This document should also outline the penalties for violating the CC&Rs, which may include fees, forced compliance or in some cases, litigation.
HOAs collect monthly association fees or annual dues to pay for upkeep of common areas like parks, tennis courts, elevators and swimming pools. Typical HOA fees are between $200 to $400 per month. HOA fees often contribute to the association’s reserve fund, which is set aside for major renovation projects or emergency use. An HOA’s board of governors is usually responsible for the organization’s finances, including the management of funds.
Advantages of an HOA
HOA members generally aim to maintain a standard of appearance for the property, and the HOA provides the regulations and guidelines for the community. The community standards should support stable property values. There are architectural standards that are designed to keep a uniform appearance to the property. Some HOA fees cover the cost of trash collection and snow removal.
Disadvantages of an HOA
The big downside of being part of an HOA is the high cost of the association fees. HOAs can also be very strict and restrict homeowners from making changes in their own properties.
So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.
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Sean La Rue