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

There are often still common areas in neighborhoods. A park, a water feature, maybe a pool or clubhouse. So they serve the same purpose as a Condo Association in that regard.

Otherwise, lots of neighborhoods are designed with uniformity in mind and it’s one of the reasons they’re attractive to buyers. And once they move in they don’t want things to change. So a HOA can assure that neighborhoods [keep a nice and uniform aesthetic](https://as2.ftcdn.net/v2/jpg/01/66/24/11/1000_F_166241107_6m4gW5nBPrs8shOuqNeJLxeeHyisBJY8.jpg) for those that have bought and those that buy in the future.

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