A homeowners association (HOA) is a non-profit organization formed by a community of homeowners to manage and maintain common areas and amenities in a residential community such as a housing development or condominium complex. Homeowners who live within the community are typically required to pay fees to the HOA, which are used to cover expenses related to upkeep, maintenance, and repairs of the shared areas and facilities.
HOAs are governed by a set of rules and regulations, often referred to as covenants, conditions, and restrictions (CC&Rs). These rules and regulations are designed to ensure that the community is well-maintained, and aesthetically pleasing, and that property values are protected. Common examples of CC&Rs may include guidelines for landscaping, exterior home improvements, and pet ownership. Homeowners who violate these rules may be subject to fines or other penalties.
In addition to maintaining common areas and enforcing rules, HOAs also play an important role in managing community finances. This may include developing and maintaining a budget, collecting fees from homeowners, and allocating funds for necessary repairs and improvements. HOAs may also hire vendors and contractors to perform services such as landscaping, snow removal, and trash collection.
It’s important for potential homebuyers to carefully review the CC&Rs and other HOA documents before purchasing a property within an HOA community. Buyers should ensure that they understand the fees, rules, and regulations that come with membership in the HOA, and that they are comfortable with the level of oversight and management provided by the organization.
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