eli5: I don’t understand HOA’s

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I understand what HOA’s do, and was first introduced to the term in a condo building (not mine). I understand in a condo building, or high rise, you’re all sharing one building and need to contribute to that building’s maintenance. But I don’t understand HOA’s in neighborhoods…when you live in your own house. Is it only certain neighborhoods? I know someone who lives on a nice street in a suburb and there’s no HOA. Who decides if there is one, and what do neighborhood HOA’s exist for? Are you allowed to opt out?

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38 Answers

Anonymous 0 Comments

Where I live in Utah, HOAs exist because the city refuses to be responsible for basic necessities like roads and sewage.

New development is often only allowed if a “company” (the HOA) takes financial responsibility for the roads, plumbing, and other services of the neighborhood. The HOA isn’t allowed to dissolve because then no one would be responsible for those services.

My own neighborhood plumbing is so badly designed and documented that we have to cut off water to 100 houses if *anyone* needs maintenance.

I hate it. Raise my taxes and make the government provide public services!

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