Homeowner's Association - HOA

AAA

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.

RELATED TERMS
  1. Homeowners Association Fee - HOA ...

    An amount of money that must be paid monthly by owners of certain ...
  2. Industrial Park

    A portion of a city that is zoned for industrial use (as opposed ...
  3. Cooperative Insurance - Co-Op Insurance

    An insurance for owners of co-op apartments that covers losses ...
  4. Condominium

    A large property complex that is divided into individual units ...
  5. Emergency Fund

    An account that is used to set aside funds to be used in an emergency, ...
  6. Reserve Fund

    An account set aside by an individual or business to meet any ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Retirement

    Does Condo Life Suit You?

    Association fees and disputes with neighbors could spoil your move if you're unprepared.
  2. Home & Auto

    9 Things You Need To Know About Homeowners' Associations

    Restrictive rules and high fees are just some of the things to watch out for before joining an HOA.
  3. Home & Auto

    Condo Complications: The Issues Behind Ownership

    Being a "condo person" is just one of the issues you'll have to examine when deciding if a condo is right for you.
  4. Home & Auto

    An Introduction To Buying A Condominium

    This real estate investment provides unique advantages - and challenges.
  5. Home & Auto

    4 Overlooked Homeownership Costs

    Mortgage payments aren't the only expense. Find what else you'll be on the hook for.
  6. Retirement

    Downsize Your Home To Downsize Expenses

    Learn how to cut your mortgage, tax, gas and utilities bills.
  7. Insurance

    Have The Right Condo Insurance?

    How well does your condo's master-insurance policy protect you? Here's why you'll probably need separate insurance for your own unit and possessions.
  8. Retirement

    In Retirement, Snowbirds Leave Cold Weather Behind

    Rather than shivering away their golden years, retirees can fly south to winter in sunny locales.
  9. Home & Auto

    3 Scenarios Where Downsizing Your Home Is Smart

    Downsizing your home can be a great step towards less financial stress, and leave you more time for family and travel
  10. Budgeting

    Cheapest Homes In America

    Here are the cities in the U.S. that offer the best home prices.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center