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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Anonymous 0 Comments

Resisting the urge to be snarky because I hate HOAs and will never live in one again. But whether the neighborhood has or doesn’t have one varies wildly, but they usually cover shared services. Landscaping, shared spaces like tennis courts or pools, trash pickup, etc. Unfortunately they are often taken over by the people in the neighborhood who have too much time and not enough to do, so they start implementing bylaws and restrictions about this or that. House paint color, where you can park your car, and on and on. I’m sure there are some HOAs out there where you can opt out, but by and large I’ve only seen them be mandatory because it’s “better” for everyone to be paying into the shared stuff.

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