HOA (Homeowners Association)

What it means

A private organization that owns and maintains common property in a planned community, condo, or townhouse development. The HOA gets its powers from the governing documents — usually called the declaration, the bylaws, and the rules and regulations. When a buyer purchases a unit, they automatically become a member of the HOA and agree to follow the rules. The HOA collects regular dues to pay for landscaping, snow removal, insurance on common areas, and reserves for major repairs. Many HOAs also charge special assessments for big projects. Rules can cover paint colors, fences, pets, parking, holiday decorations, short-term rentals, and many other things. Disputes between an owner and the HOA can be resolved through the internal complaint process, mediation, or court. Unpaid dues can lead to a lien on the unit and, in serious cases, foreclosure on the lien. Reading the governing documents before buying is critical.

When you might hear this

A homeowners association is the private organization that runs a planned community, condo, or townhouse development. The HOA collects dues, enforces rules from the governing documents, and maintains common areas.

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