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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The extent of the responsibilities for an HOA that covers a neighborhood of detached houses varies significantly and tends to depend on what services the local municipality is already serving to that neighborhood. Just like condos in a high rise, a bunch of detached houses on a single street still rely on shared goods. The street itself is the most obvious, but this can also include landscaping/forestry, security, trash pickup, and various utilities. Houses on a public street in a large city likely do not need an HOA. Houses on a private street with a fence around them absolutely do.
On top of this, even when an HOA isn’t needed to keep the streets from wearing away to nothing, some neighborhoods might have one for purely aesthetic/social purposes. These HOAs have an interest in keeping all of the houses in the neighborhood looking more or less the same (either because the residents like that or because they believe it increases the market price of their house) and maybe throwing a party every few months.
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