FAQ

A homeowners association (HOA) is a corporation that serves as the governing body of a residential community, such as a condominium, townhome or single-family development. HOAs are created to protect the community’s property values by developing and upholding its covenants and bylaws, which define the actions homeowners may take with their properties, as well as their behavior within the community. HOAs are often formed by real estate developers during the development and sales stages, during which they assume financial and legal responsibility and retain voting and governance rights. Association ownership and all related responsibility are transferred to homeowners at turnover, which occurs after selling a specified number of units.

Since most HOAs are incorporated, they are subject to statutes governing homeowners associations and not-for-profit corporations, as mandated by each individual state. All community homeowners are mandatory members of the HOA, and must follow the community’s guidelines to ensure a harmonious environment and lifestyle; failure to comply can result in fines or other penalties.

An HOA’s Board of Directors is comprised of homeowners who have volunteered to stand for election to leadership or member roles. They can also be individuals appointed by the developer to facilitate turnover and management when the community is complete. The Board is comprised of officers, who typically include an elected president, vice-president, treasurer and secretary, as well as non-officer Board members. Board leaders and members serve the community by making and enforcing the association’s rules and policies, collecting dues and ensuring its facilities and common areas are well managed, maintained and attractive.

You automatically become a member of the homeowners association and a shareholder as a condition of purchasing a home within a common interest development (CID). Your HOA membership entitles you to voting rights, which gives you a voice in helping to set association rules, policies and regulations that affect your community. In addition, all association members are required to share the costs of operating and maintaining your community’s common areas, systems equipment and amenities. These services are covered by your homeowners’ association fees or dues, which each unit owner is required to pay. Payments are made to the association monthly, bi-monthly, semi-annually or annually, depending on the community.

A homeowners association is led by a board of directors who have been elected by the homeowners. Most often, the board consists of fellow homeowners with an interest in keeping the neighborhood strong.

Covenants and Bylaws are the governing legal documents that outline the guidelines for the operation of the community as a non-profit corporation. They are recorded by the county recorder’s office and are included in the title to your property. Often, a homeowner who fails to abide by the governing documents may be fined by the homeowner’s association.

The resident will receive a written notice of violation from the Covenant Officer with instructions on how to resolve the violation. If the violation is not resolved within the specified timeframe, the resident may incur a daily fine until the violation is resolved.

The resident must submit a request to the Architectural Control Committee prior to any improvements being done and receive approval. No building structure, deck, patio, porch, covered walk, arbor, sidewalk, driveway, exterior lighting, outbuildings, fence, gate, wall, exterior hot tub, swimming pool, backyard pond, mail box, exterior painting or any other improvement or major landscaping, cutting of trees larger than 6” in diameter, shall be erected, placed, or altered on any lot unless and until the lot owner shall submit plans for such construction and/or changes to the ACC and have received written approval.

An assessment is the amount that is periodically due from each homeowner to cover the operating expenses of the common areas, hazard insurance, and to provide reserve funds for future improvements. All homeowners are required to pay the annual assessment.

HOA dues are used to pay the costs of ongoing maintenance and repairs to a community’s common areas, equipment, systems and shared amenities (see examples below). Payments are made monthly, annually, semi-annually or quarterly, depending on the community. As an ancillary benefit, homeowners can use and enjoy community amenities that may not otherwise be able to afford or maintain, such as swimming pools, tennis courts, gym memberships or valet services.

Like any budget, a homeowner’s association budget is designed to reflect upcoming debts such as utilities, landscaping, maintenance of amenities and operational expenses. The reserve fund is money that has been set aside for future expenses, such as new lighting, fencing, and street resurfacing.