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. Emergency Fund

    An account that is used to set aside funds to be used in an emergency, ...
  5. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
  6. Reserve Fund

    An account set aside by an individual or business to meet any ...
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

    What is the difference between capitalization rate and rent?

    Find out the difference between capitalization rate and rent and why they are so important to making wise investments.
  6. Home & Auto

    Can real estate agents help renters find rental property?

    Real estate agents offer renters a true advantage when searching for a new home as well as negotiating power when signing a lease.
  7. Home & Auto

    4 Overlooked Homeownership Costs

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

    Downsize Your Home To Downsize Expenses

    Learn how to cut your mortgage, tax, gas and utilities bills.
  9. 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.
  10. Retirement

    In Retirement, Snowbirds Leave Cold Weather Behind

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

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center