SAN ANTONIO – Homeowners associations govern residential communities across the country, collecting fees, enforcing rules and making decisions that directly affect property values and daily life.
According to the National Association of Realtors, 75.5 million Americans live in a community governed by an HOA.
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How do HOAs work? Here’s everything you need to know:
What is an HOA?
A homeowners association, or HOA, is a governing organization within a residential community that creates and enforces rules for properties and residents, according to FirstService Residential.
Homeowners in an HOA community are automatically members of their HOA and are required to pay fees, which are used for common-area maintenance, community amenities and administrative costs.
Under Texas law, HOAs are known as property owners’ associations (POAs).
What do HOAs do?
“While the specifics vary from one HOA to another, their overarching goal is to protect property values and improve the community’s quality of life,” FirstService Residential states.
HOAs are generally responsible for property maintenance, including upkeeping the landscaping, common areas and other shared infrastructure, like roads and sidewalks.
The associations also oversee amenities like swimming pools, parks, fitness centers and clubhouses.
HOAs collect recurring dues from every homeowner. A portion of those funds is often set aside to cover major repairs or emergencies, according to FirstService Residential. The National Association of Realtors averages monthly fees ranging from $200-$300 for single-family homeowners and $300-$400 for condo owners.
HOAs can also mediate disputes between neighbors and enforce community rules. Those rules can cover everything from exterior paint colors and landscaping standards to noise levels, pet policies and parking guidelines.
What gives them the authority?
An HOA’s authority comes from its governing documents, which homeowners agree to when they purchase property in the community, FirstService Residential states. Those documents typically include:
- Covenants, Conditions, and Restrictions (CC&Rs) outline the rules homeowners must follow.
- Bylaws define how the HOA operates, including how board members are elected and how meetings are conducted.
- Articles of incorporation establish the HOA as a legal entity under state law.
Who votes them in?
Usually, HOAs are set up by property developers, who transfer control to homeowners when development is complete, according to FirstService Residential.
Homeowners can then elect a board of directors to manage the HOA.
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