What is an HOA? Understanding Homeowners Associations

 

When you move into a neighborhood, you are going to meet an inevitable group of people who are going to be somehow the heads of that particular community. They are however not mandated but they don’t always need to exist but if you look at the overall history of mankind. There are always certain groups of people to lead the pack or the community. 

In this case, HOA’s or Homeowners Associations lead the way and their laws are and rules are binding unfortunately for those who don’t exactly like getting told what to do. Although they are not that entirely bad, they keep the neighborhood well maintained, rules for everybody means more peace collectively. Otherwise, there would always be this one or two neighbors who would consistently annoy other neighbors as if they don’t have any regard to the peace.
 

Key Takeaway

The Homeowners Association is a body that oversees the peaceful living and manages the neighborhood’s well being by setting rules, collecting fees to maintain shared spaces and enforce community standards.

What Does HOA Stand For?

HOA stands for Homeowners Association and no, they don’t always have to exist as mentioned earlier. They can be a necessary force however to ensure peace is observed in the neighborhood. Sometimes, even the neighborhood itself calls for an election or appointment of HOA members just to keep the neighborhood as livable as it can be.

HOA’s make sure that everybody follows the rules to keep everybody happy. From mowing the lawns to organizing events in your own locality, HOA’s general rule is to keep the peace so that everyone as one community can enjoy the limited living space granted by way of ownership.
 

What is the Point of an HOA?

 

Sense of order within the community is the topmost priority of HOA’s. It is just like a country with a president leading its constituents by keeping crime rates low and keeping employment high. In HOA standards, they keep neighborhood nuisance low to make sure everybody sleeps well at night.

A healthy HOA body means that the neighborhood is also likely to be more attractive to potential buyers who are interested in the neighborhood. Without HOA’s, individual families are left to handle community responsibilities and neighbors would not recognize any other authority than themselves. Thus, creating a cascade of problems that would ultimately make a community less attractive to live on.

 

How much do HOA fees usually cost?

The fees vary depending on the community, there are communities that are much more expensive than others. But for context, the average small community, HOA, charges around $50-$100 per month. Average sized communities charge around $200-$300 per month and high end communities with for example luxury amenities like golf courses could go over $1000 per month.
 

Can HOA fees increase over time?

Yes. HOA fees increase over time just like inflation and just at the same rate. It is because these fees cover maintenance, repairs, and improvements and they cost labor and materials to accomplish and these things increase over time.
 

What happens if I don’t pay my HOA fees?

 

Fines, interest charges, and even legal actions are going to be the thing you must expect if you are insolvent on the fees. As mentioned earlier, HOA’s also have rules that have the enforceability of a regular law of the land. In some cases, the HOA can place a lien on your property which will affect your ability to sell your property.

Can You Refuse to Join an HOA?

No, buying a home in a community is always tied to an HOA so before buying a property in a community, make sure you are certain about buying the property and you don’t mind having to follow HOA rules and make sure you read and review HOA documents carefully. Being a homeowner will automatically render you a member of the HOA and is a binding condition of the property deed.

Refusing to join, ignoring the HOA, could lead to legal complications later on. This might sound like the HOA requires a lot from you but you don’t really hear much from them. They only collect monthly fees, and maybe once or twice a year of meeting and that is it.

Can an HOA Force You to Pay?

Yes, it sounds harsh but you are essentially not forced to pay but you will be compelled to follow through the procedure because the HOA has the legal authority to enforce payment of fees from all homeowners in the community. Once again, as mentioned earlier, their rules and laws have the same effect as a regular law of the land, thus, inaction will lead to legal consequences. Sometimes, this is an additional burden especially to those who rarely use the amenities.
 

Bottom Line

 

HOA’s or Homeowners Association is a body or organization in a housing community who spearheads the overall wellbeing of the residents and homes by monitoring the maintenance, overseeing repairs, and making sure everybody is observing peace and order in the community. None of these would benefit the HOA as it is not the primary goal of HOA’s but the well being and happiness of residents and that is simply it.

 

However, HOA’s would take some of your money monthly for them to function and do their job and to put simply, if you don’t pay, you will face the same wrath of a regular law passed by Congress. So, before buying that house, make sure you are okay with all of these.

 

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