What is an HOA (Homeowners Association)?

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on January 11, 2021

HOA Meaning

A homeowners association, or HOA, is an organization in a neighborhood, condominium, or other jurisdiction that creates and enforces rules for the residents and their properties. 

Certain jurisdictions may require homeowners to become a member of the HOA and require dues, called HOA fees, typically collected monthly or annually. 

The HOA uses the funds to benefit members of the HOA, such as facility upkeep of common areas.

What Does An HOA Do?

An HOA consists of a board of directors who are elected to enforce their established rules and regulations. 

The “Declaration of Covenants, Conditions, and Restrictions”(CC&Rs) outlines the stipulations homeowners are expected to uphold. 

Examples in CC&Rs include:

  • Lawn Requirement
  • Parking Restrictions
  • Pet Regulations
  • Visitor Expectations
  • Other Maintenance Requirements (such as color of mailbox or required home upkeep)

The document of CC&Rs also outlines the penalties for violations of the rules, which may include fees, forced compliance, or litigation. 

HOA Benefits

The pros of an HOA include:

  • Self-governance in case of conflict
  • Services resulting in a well-kept neighborhood or common areas
  • Upheld property values

HOA Cons

The cons of an HOA include:

  • Fees (required to run HOA)
  • Imposing of restrictive rules or inconvenient assessments
  • Poor volunteer management and inefficient spending of HOA fees

Homeowners Association (HOA) Definition FAQs

HOW is an acronym for a Homeowners Association.
Homeowners Association Fees are monthly payments, made by a homeowner to their neighborhood Homeowner’s Association (HOA).
HOA fees are collected and then put to use for the purpose of maintaining or expanding shared common areas within the neighborhood or complex.
An HOA consists of a board of directors who are elected to enforce their established rules and regulations.

Homeowners Association (HOA) Subtopics