Homeowner's Association - HOA
Definition of 'Homeowner's Association - HOA'
An organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction. HOAs also collect monthly or annual dues to pay for upkeep of common areas like parks, tennis courts, elevators and swimming pools and can levy special assessments on homeowners when the association lacks sufficient reserves to pay for unexpected repairs.
Investopedia explains 'Homeowner's Association - HOA'
Some homeowners associations are very picky about what their members can do with their properties, such as whether Christmas lights can be hung or what kind of window coverings may be used. Others are more relaxed and just want to generally keep property values up by doing things like mowing the grass in common areas and preventing homeowners from painting their homes unusual colors.
Homeowners associations can also have significant legal power over the property owners in their jurisdiction. They can place a lien on a property if a homeowner falls behind on his dues, for example.