What is an HOA | Redfin

Key takeaways

• An HOA manages and enforces rules for a community.
• HOAs can provide benefits like community maintenance and amenities.
• There can also be downsides, like restrictions on home modifications.

Whether you’re searching for homes for sale in Santa Barbara or in Raleigh, you may encounter something called a Homeowners Association (HOA). Fear not, depending on what you’re looking for as a homeowner, HOAs have the power to be beneficial.

But what exactly is an Homeowners Association, and how does it work? This Redfin article explores the ins and outs of a Homeowners Association, and by the end, you’ll be able to determine if an HOA is something that you’d enjoy during your homeownership experience, or if it is something you’re willing to forego. Now, let’s get started.

What is an HOA?

An HOA is an organization in a planned community, subdivision, or condominium building that makes and enforces rules for the properties and their residents. When you purchase a home in a community with an HOA, you automatically become a member and are required to pay regular dues.

What do they do?

HOAs have several responsibilities that aim to maintain and enhance the community’s appeal and property values. These responsibilities typically include:

• Maintaining common areas: This includes landscaping, pools, clubhouses, and other shared spaces.
• Enforcing rules and regulations: HOAs create and enforce rules about property maintenance, noise levels, parking, and more.
• Collecting dues: These dues fund the maintenance of common areas and other community expenses.
• Managing the budget: HOAs create and manage a budget to ensure community needs are met.

Benefits of living in an HOA community

There are several advantages to living in a community with an HOA:

• Well-maintained community: HOAs ensure common areas are kept clean and attractive.
• Amenities: Many HOAs offer amenities like pools, gyms, and community centers.
• Property value: HOAs aim to maintain property values by enforcing standards.
• Dispute resolution: HOAs can help resolve disputes between neighbors.

Potential drawbacks of living in an HOA community

While there are benefits, there can also be drawbacks to living in an HOA community:

• Fees: These fees can add to the cost of homeownership.
• Rules and restrictions: You may have limited freedom to make changes to your property. HOAs may also make it so that you can’t rent out your primary residence if that is your goal.
• Potential for conflict: Disputes with the HOA or neighbors can arise.

What are HOA fees?

HOA fees are regular payments that homeowners make to their Homeowners Association. These dues cover the cost of maintaining common areas, amenities, and other community expenses. The amount of dues can vary significantly depending on the community and the services provided.