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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HOA’s operate similarly to condo association. They do not exist in all neighborhoods, but instead are typically seen in ones that do have shares property/amenities like a subdivision that was built out by a developer. This might simply be some landscaping and a sign at the entrance of the development, or it might be amenities like a pool, clubhouse/party room, playground, etc. Also, depending on the community, the HOA might have ownership of the roads and need to maintain them, plow them in the winter, etc.
An HOA is set up at the time the homes are built and sold, and is attached to the deed of the home so that subsequent buyers are required to acknowledge that the house is bound by an HOA and they agree to abide by its rules and pay its assessed fees as part of the purchase process. If the home is part of an HOA there is no way to opt out.
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