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?
In: Other
I can only speak from the experience of an HOA for a house but I imagine it’s same concept that applies to condos/townhomes.
They typically exist to enforce rule/laws on how your house is presented, such as no cars on your lawn or your house needs to be painted certain colors. In my area, they also maintain common areas such as the developments pool or park in addition to any of the house regulations, using the annual fees we pay.
The idea here is that they exist to make the area look good and raise home values by keeping the area clean while also providing some amenities.
In terms of just opting out, it’s typically not something you can do. If you’re buying a house in an HOA it’s typically one of the documents you sign (I think called CC&R’s) when you buy that you’ve read the bylaws and agree to follow them, pay dues, etc.
If you don’t follow the rules you can get fined. If you don’t pay the fines or the dues it can accrue and they can put a lien on your home.
Candidly I think HOAs get a lot of (justifiable) flack because people get elected to the board and they are typically older people who have a lot of free time, power goes to their head and they try to enforce draconian rules on their neighbors. That being said, my current board on my HOA is very laid back and they do a great job of making sure everything looks clean without overstepping their bounds.
Latest Answers