Define: Homeowners’ Associations (Hoas)

Homeowners’ Associations (HOAs) are responsible for managing and overseeing common areas and interests in communities, such as subdivisions. When individuals purchase property in an HOA-governed community, they are required to adhere to specific rules and make payments to ensure the community’s well-being. These rules, known as covenants, conditions, and restrictions (CC&Rs), vary in terms of authority and fees depending on the community. In the event that a homeowner violates a rule or fails to make payments, the HOA has the authority to take action, including imposing fines or even initiating foreclosure proceedings. It is crucial for homeowners to thoroughly review the CC&Rs before purchasing a property in an HOA community.

Homeowners’ Associations (HOAs) are organisations responsible for managing the common areas and interests of a community, like a subdivision. When individuals purchase property in an HOA-governed community, they are legally obligated to adhere to the covenants, conditions, and restrictions (CC&Rs) that apply to all properties in the community. Each homeowner must comply with these guidelines and pay the HOA fees. The HOA ensures that common areas, such as a community playground, are well-maintained and enforces the CC&Rs, which may include requirements like regular lawn mowing. For instance, homeowners in an HOA community may be required to pay a monthly fee to cover the maintenance costs of shared amenities like a pool or park. The HOA may also have rules regarding the appearance of homes, such as specifying paint colors or prohibiting certain types of landscaping. However, the authority of HOAs can vary significantly based on the CC&Rs. Some HOAs have minimal fees and requirements, such as maintaining a presentable property without excessively tall grass or boarded-up windows. Others have higher expectations and fees, with some cities averaging monthly fees in the thousands. Many HOAs have specific guidelines, such as prohibiting any items in the yard, mandating specific door colors, requiring cars to be parked in the garage, or even specifying the colors of flowers in flower beds. Therefore, it is crucial for homeowners to review the CC&Rs before purchasing a property. When homeowners violate a restriction or fail to pay fees, the CC&Rs provide the HOA with specific remedies, such as fines or, in extreme cases, foreclosure. The extent of these remedies can vary greatly among different HOAs. Some laws restrict how HOAs can penalize homeowners, limiting foreclosure actions to cases where the homeowner behaves unruly. However, these laws differ from state to state and city to city. Additionally, certain federal and state laws may prevent HOAs from enforcing restrictions that are unconscionable or against public policy. For example, federal laws prohibit HOAs from banning homeowners from having a service animal.

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This glossary post was last updated: 17th April 2024.