HOA (Homeowners Association)
Also known as: Homeowners Association, Property Owners Association, POA
An organization that manages a residential community, maintains common areas, enforces community rules (CC&Rs), and collects fees from homeowners. In new construction, the builder creates and initially controls the HOA.
Detailed Explanation
An HOA is the governing body of a residential community. It manages shared amenities (pools, parks, clubhouses), maintains common areas, and enforces the community's rules and architectural standards.
In new construction communities, the builder creates the HOA and controls it until a specified percentage of homes are sold — often 75-90%. During this period, the builder makes all decisions about HOA spending, rules, and reserves.
HOA fees are a recurring monthly or annual cost that buyers must factor into their budget. Fees can range from $100 to $500+ per month and may increase over time.
In Your Contract
Look for an HOA addendum or disclosure document attached to your purchase agreement. It should include the CC&Rs, bylaws, current fees, and budget information.
Key Points
- 1Manages common areas and enforces community rules.
- 2The builder controls the HOA during initial development.
- 3Monthly fees typically $100-$500+ and may increase.
- 4Special assessments can be levied for unexpected expenses.
- 5Read the CC&Rs before buying — they are legally binding.
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