HOA = Homeowner Association
A homeowner association is a private association often formed by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. The primary reason for creating a homeowner association is to uphold and enrich property values. This is accomplished by enforcing the community’s covenants and maintaining the common areas. Both of these keep the overall community looking nice and keep the home somewhat cohesive. There has to be leadership, which is why the association has what they call an HOA Board of Directors. Once a family buys a home in the development, they become a member of the homeowner association. When the community starts to grow, the residents can elect the members who are most qualified and interested in overseeing the association to serve on their Board of Directors. Once a certain percentage or number of the community’s homes are sold, the developer turns full control of the association over to the board. Every homeowners’ association is subject to its state’s property laws, but they each have their own governing documents. These documents include rules and regulations, bylaws, ARC’s, and other restrictive covenants. All of these guidelines are intended to define the principles of the community for the sole purpose of shielding property values. A homeowners’ association is created to do the job everyone in the community wants done. Ultimately, residents in a neighborhood like to see a well put-together area where they live and call home. An HOA makes sure this is maintained and enforced to keep all of its members happy and desiring to stay in the community.
