A homeowners’ association (HOA) is a legal entity created by a community of homeowners, typically in a planned development, to manage the common interests of its members. Most HOAs are incorporated as non-profits and funded through mandatory assessments of dues from its members. The purpose of an HOA is to protect the value of each owner’s property and provide for the enforcement of deed restrictions or other regulations in order to promote the maintenance and upkeep of common areas shared by all members. By forming an HOA, owners are able to make collective decisions that affect the property values and enjoy the many benefits that come with collective home ownership.
The Responsibilities of Homeowners’ Associations
The primary responsibility of an HOA is to manage the enforcement of the HOA’s governing documents, typically consisting of the CC&Rs (covenants, conditions and restrictions), bylaws, and articles of incorporation. The HOA is generally responsible for most of the activities related to the common areas shared by the owners, such as the grounds, streets, and common areas. Common activities often include landscaping, snow removal, lighting, and other services that benefit the community. The HOA is also responsible for enforcing any rules adopted by the association, such as parking restrictions, pet policies, and noise restrictions.
Benefits of a Homeowners’ Association
The primary benefit of an HOA is the shared responsibility of maintaining and enforcing the common areas of the neighborhood. This helps keep property values stable and creates a sense of stability and community for homeowners. Additionally, HOAs can provide other shared resources for residents, such as lawn care, fitness centers, swimming pools, and other recreational facilities.
Conclusion
Homeowners’ associations can offer many benefits to their members, while also providing a useful system for managing the shared resources and enforcing the governing documents of the neighborhood. Understanding the responsibilities and benefits of an HOA is important for any homeowner looking to join a planned community.