What is a homeowners association?

Answer 1

An HOA (homeowners association) is an association of homeowners formed by the developer when land is subdivided for development. (HOAs are also created by the Master Deed for condominium projects.) The developer records in the land records a Declaration that includes the restrictions, provisions, by-laws, rules and regulations promulgated by the HOA. The Declaration is included as an encumbrance on every unit or lot sold.

HOAs charge a fee that must be paid by homeowners. One of the functions of the HOA is to enforce the private deed restrictions. The HOA also allows the developer to exit all legal and financial responsiblity once the lots are sold off. If blatant wrongs are commited by the developer, State law gives a fixed amount of time to pursue the developer legally. In Massachusetts there is a 6 year statute of limitations.

Now the HOA is handed off or 'dedicated' to the homeowners. HOAs are effectively de-facto levels of government. In many states, there is little oversight provided by the State. The laws that do exist are not accompanied by any enforcement of those laws: HOA lawyers know there is little danger of ignoring the laws. There is no supervision of elections, incombant boards count the ballots, there are no 'opposition party's, HOAs are single party political systems. There is no 'free press', HOA board meeting minutes are strictly controlled by the board. (Owners can publish newsletters.)

Another Answer

Generally, a homeowner's association is an organization set up by the developer of a subdivision, planned community, or condominium, that makes or enforces rules and regulations for the properties within its control. It generally collects monthly assessments for such expenses as repairs, insurance and upkeep of common areas. The association has wide powers, is set forth in the documents that created the development and is recorded in the land records to notify potential buyers. By purchasing a lot or unit in the community the buyer agrees to abide by the rules and regulations promulgated by the HOA. Some are very restrictive and some are more lenient but all have significant legal power.

Answer 2

Generally, when you purchase real estate, you'll be informed as to whether or not your property is covered by an HOA or other common interest community scheme. If you are subjected to being part of a CIC, you will be given covenants, conditions, reservations and restrictions (CC&Rs), which are also filed in the local land office by the developer who developed the community, and a set of By-laws, under which the elected board -- or developer -- operates the business of the association.

Answer 3

A HOA is an organization set up by a developer of a planned community such as a subdivision, condominium or retirement community. Its purpose is to preserve the integrity of the community. When a buyer purchases a lot or unit within the community they are subject to any provisions, rules, regulations, restrictions or special assessments promulgated by the HOA.

An HOA is granted powers by the developer via a declaration that is recorded in the land records. The powers can include, but are not limited to, the following: the power to make and enforce rules and regulations, impose restrictions, impose and collect special assessments and assess common dues, delegate parking, manage common areas, amenities and recreational facilities, hold title to conservation areas within the community, require architectural approval, pursue delinquent fees and assessments, issue certificates of no common charges due, hire management companies, manage capital improvements and repairs, etc.

The organizational type chosen by the developer for the HOA can be a non-profit corporation, a for-profit corporation, or an unincorpoated association. What this gives the owners of the association once the developer has turned it over to them, is a series of business guidelines by which the association can operate.

The goal of the association is to preserve the assets owned by all owners in common, regardless of whom the owners might be.

All monies paid by owners to the association are properly assessments, whether regular to pay the operating costs of the community, or special to pay for unexpected expenses. Assessments are legally due and owning by owners of record, and may also be personally due to the association, regardless of the status of the individually-owned real estate.

The specific responsibilities and task for each association are detailed in the custom governing documents developed for the community. Each is different from all others.

Answer 4

The term homeowners association is used by real estate developers to define land use in the local land-use office when they develop land. Every association is operated by a unique set of covenants, conditions, restrictions and regulations (CC&Rs).

As well, the association operates its business by way of by-laws that may be dictated by the form of corporation attached to the association.

Purchasing a unit in an association and living in an association dictates that you understand the association's CC&Rs, appreciate its by-laws and can agree to these parameters.

Answer 5

An HOA is and organization in a subdivision, planned community or condominium that manages the community for the benefit of all the homeowners. An HOA is created by the developer within the documents recorded in the land records that establish the planned community. The HOA makes and enforces the existing rules and regulations that affect the community and collects monthly or annual dues to pay for upkeep of common areas like parks, tennis courts, elevators and Swimming Pools. The HOA has the authority to levy special assessments on homeowners for extraordinary or unexpected repairs and improvements.

In another sense, homeowners in a defined area sometimes organize homeowners associations to advocate for their common interests, especially improving or protecting the quality of life in their neighborhood, especially in historic districts. They maintain terraces and other open areas, host block parties, organize patrols, look for signs of neglect and troublesome occupiers, attend city council meetings, form committees and have meetings. They may refer to their group as a homeowners association but membership in this type of association is voluntary and they may be more accurately described as neighborhood associations.