Home Owners Association (HOA)

A Home Owners Association (HOA) is a body which represents owners and monitors and implements the rules and regulations (as defined in the deeds and covenants) relating to a subdivision.

A HOA exists to ensure that any community facilities (entryway, community pool, playground, clubhouse, tennis courts, landscaped areas, security gates, etc) are properly maintained and to protect the rights and property values of the homeowners in the subdivision.

Who Runs the HOA?

Until the builder has completed construction of all of the homes in the subdivision, the builder will administer the HOA. At build-out, the builder will usually turn the running of the HOA over to the residents.

Generally, the residents in a subdivision will elect owners to staff and administer the HOA. Increasingly, though, the day-to-day operation of the HOA is being transferred to a professional property management organization, which is paid to carry out the required functions.

Rules & Regulations - Whom Do They Govern?

Essentially, the rules and regulations are designed to protect quality of life and property values for the homeowners in the subdivision. Some examples are preventing owners from painting their homes in outrageous colors; banning the parking of boats and/or recreational vehicles on residential lots; ensuring that lawns/landscaping do not grow wild; limiting business activities in residential homes; and regulating parking on roads in the subdivision.

What Does It Cost?

With few exceptions, membership in an HOA is mandatory and there is usually a membership fee. Fees will reflect the available community facilities and services provided. A community with modest facilities such as a swimming pool and children’s playground will have lower membership fees than one with a more comprehensive, resort style facility and gated security. Fees can range from $35 to well over $1,000 per year.