The Purpose of HOAs

Have you ever wondered why we have homeowners’ associations? Are they necessary? What are the benefits of living in an HOA? In this article, we’ll answer those questions, and more. Keep reading!


HOAs Defined

To begin, let’s define what an HOA is. An HOA is a legal entity governing a community of homes, townhomes, or units within a condominium building. An HOA, or a homeowners’ association, operates within state laws to enforce regulations in each individual community. Essentially, it is a private group that manages a neighborhood from within. An HOA is run by a voluntary board of directors (typically residents) of the community who are elected by other fellow residents. The HOA manages all common areas and amenities within the community.

HOA Membership

Purchasing a home or unit within an HOA’s jurisdiction will automatically make the purchaser a member of the association. Members are required to pay assessments (often called “dues”) and follow the community’s Covenants, Conditions, and Restrictions (CC&Rs), Articles of Incorporation, and Bylaws, also known as the governing documents. These governing documents set a schedule of restrictions and penalties that mandate owners to keep their property in uniform condition in order to maintain property values.

Living with Perks

While an HOA is not necessary, it is becoming the norm in communities across America. There are many benefits to living in a community governed by an HOA. Some, but not all, have amenities (think playground, pool, fitness equipment, parks, etc.) and common areas, while some HOAs even include yard maintenance and social activities.

The HOA board will collect fees from all association members based on what amenities and other services are offered and what sort of budget the HOA board needs to operate on during the fiscal year. Some may view this as a downside of living in an HOA community. Yes, there are fees required, but those go directly toward bettering the community. Most people who choose to live in an HOA see these costs as an even trade-off.

Maintaining Property Values

The biggest benefit of an HOA is that it acts as a safeguard for property values within the community. Mandated landscaping, property maintenance, architectural guidelines, and regulations ensure that the community is well kept and everything looks nice.


If you like living in a safe, clean, and well-kept neighborhood, then living in an HOA community is a great choice for you!