Considering buying into a Homeowners Association (HOA) property? Well, you’re probably wondering why they may exist in the first place?
Here is why they are implemented and the reasons some may prefer an HOA versus a non-HOA property.
Key Summary
HOAs or Homeowner Associations exist to enhance communities. They will maintain common assets, establish rules and ensure varying degrees of conformity within neighborhoods. The latter is meant to protect owners’ collective interests.
If you are lucky enough to support the shared objectives, life in an HOA community is good. There are certainly pluses and minuses!
The Good and Bad
Many HOA residents find that not having to do all of the maintenance suits their lifestyle. Others enjoy the shared assets, like gyms or pools. If you want a pool but not the cost, living in a condo or planned community is great.
However, while millions of people enjoy living in HOAs, others do not. You may be irritated by the fees, find the rules restrictive, or believe the community is poorly managed. In that case, HOA life is no paradise.
Learn more about the pros and cons of living in an HOA.
Preserve Property Values
One of the most significant advantages of an HOA is its potential to stabilize or increase property values. HOAs enforce regulations that ensure homes and common areas are well-maintained, which contributes to an attractive and cohesive neighborhood aesthetic.
These guidelines often cover the cleanliness, condition, and repairs of properties, ensuring a uniform appearance throughout the community.
Consistent property values result from maintaining high curb appeal, well-maintained homes, and neighborhood safety. Additionally, architectural controls ensure community design standards are consistent, which studies have linked to higher property values.
By adhering to these standards, HOAs aim to create a desirable living environment for all residents, fostering community pride and preserving property values.
Curb Appeal
Opinions aside, the presence of an HOA – especially a well-run one – should protect property values.
If you want to understand why, take a walk or drive through a gated HOA community during an open house and see how it feels. While there are exceptions, HOAs are usually clean and aesthetically consistent.
That is typically because the CC&Rs ensure everyone in the neighborhood stays on top of on yard work and maintains uniformity.
Planned Community Development
HOAs play a crucial role in planned community development by ensuring consistent architectural styles and maintaining landscaping guidelines.
Architectural controls, managed by an Architectural Control Committee (ACC), require homeowners to submit exterior modification projects for approval, ensuring they align with community design standards. This helps to preserve the community’s visual appeal and quality, making it a more desirable place to live.
Furthermore, HOAs may have specific development plans for common areas and amenities, ensuring these spaces are well-maintained and aesthetically pleasing.
By enforcing these standards, HOAs create a cohesive and attractive living environment, contributing to a strong sense of community and enhanced property values.
Maintaining the Community
Maintenance and replacement of common elements (those assets owned by the community) are funded by the owners in proportion to their unit entitlement.
Reserve funds are established to save for maintenance, repairs, and eventual replacement of common assets, with special assessments charged when an unexpected expense arises.
Each state has its own rules around reserve funds and HOAs have varying flexibility on how fully funded they are. To track the health of common property, reserve studies are updated regularly.
Some HOAs keep dues and regular assessments low in favor of paying for larger projects when necessary.
Others build up reserves regularly and rarely charge special assessments. Whatever the approach, Homeowner Associations exist to enhance communities.
There are more HOAs in America today than ever before.
Maintenance of Infrastructure & Utilities
Many HOAs take on the responsibility of managing essential infrastructure and utilities within the community. This can include the maintenance of private roads, ensuring they are well-paved and safe for residents.
Street lighting is another common responsibility, providing security and enhancing the neighborhood’s appearance. Additionally, HOAs often handle snow removal, making it easier for residents to navigate the community during winter months.
Garbage collection services may also be managed by the HOA, ensuring timely and efficient waste disposal. Furthermore, some HOAs oversee stormwater management systems, which are crucial for preventing flooding and maintaining environmental quality.
By managing these services, HOAs relieve individual homeowners of these burdens, contributing to a more convenient and well-maintained living environment.
Amenities for All!
One of the significant benefits of living in an HOA community is access to a variety of amenities. These often include swimming pools, fitness centers, parks, and community halls, providing residents with convenient recreational options.
HOAs may also offer amenities such as clubhouses, walking paths, playgrounds, and picnic areas, allowing homeowners to enjoy various activities right within their neighborhood.
These amenities foster a strong sense of community by providing spaces for organized events, meetings, and social gatherings. The maintenance and upkeep of these amenities are handled by the HOA, saving residents the hassle of individual maintenance.
Access to these amenities enhances the quality of life and provides opportunities for recreation and social interaction, making HOA communities particularly appealing.
Recommended Reading: What is an HOA Board?
Want to learn more about your HOA?
If you have HOA documents you want to review in-detail, without spending hours of your own time reviewing them, use Eli Report!
An AI-Powered HOA Document Review Software to save you time and money when reviewing these important documents.