Homeowner's Association - HOA

Loading the player...

What is a 'Homeowner's Association - HOA'

A homeowner's association (HOA) is 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.

 

BREAKING DOWN '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. Landominium

    A type of residential property in which the owner owns both the ...
  3. Hope For Homeowners

    A federal aid program aimed at helping homeowners who reside ...
  4. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
  5. Homeowners Protection Act

    A law designed to reduce the unnecessary payment of private mortgage ...
  6. Term Payment Plan

    An option for receiving reverse mortgage proceeds that gives ...
Related Articles
  1. Personal Finance

    How To Form A Homeowners' Association

    Forming and managing a homeowners association is a huge task with significant responsibilities and major implications.
  2. Personal Finance

    9 Tips for Handling Homeowners’ Associations

    Before you buy property in a community with an HOA, there are nine things you should do.
  3. Personal Finance

    4 Overlooked Homeownership Costs

    Mortgage payments aren't the only expense. Find what else you'll be on the hook for.
  4. Personal Finance

    Condo-Buying Walkthrough: Condominium Fees

    Condominium fees are monthly dues paid by each unit owner. The fees are commonly based on the percentage of the development that is owned by each individual owner. For example, the owner of a ...
  5. Personal Finance

    Condo-Buying Walkthrough: Condo Characteristics

    Condominium ownership is considered a hybrid form of ownership because it falls outside traditional structures of property ownership. Certain legal and technical characteristics help define condominium ...
  6. Investing

    Can't Sell Your Home? Rent It

    Find out how to profit from your property when the housing market dips.
  7. Markets

    House Price Vs. Interest Rate: Which Is More Important?

    Deciding which factor is more important can make a difference in monthly payments, ability to move and Homowners Association fees.
  8. Personal Finance

    This Is How Property Taxes Are Calculated

    Understanding how property taxes work will ensure that you won't be overcharged.
  9. Personal Finance

    How To Delay Foreclosure

    While losing a home can be a traumatic event for you and your family, it's best to find ethical means of delaying or avoiding foreclosure, even if it takes more time.
  10. Personal Finance

    5 Myths About Homeowner's Insurance

    Many homeowners believe their policies will cover them for any and all damages, but the reality can be an expensive surprise.
RELATED FAQS
  1. What's the difference between renter's insurance and homeowner's insurance?

    Renters insurance and homeowners insurance offer similar benefits for occupants and homeowners, but in different ways and ... Read Answer >>
  2. Is homeowners' insurance required by law?

    Learn why it is always wise to protect your home with insurance even if it is not required. Understand how high-deductible ... Read Answer >>
  3. Does homeowners insurance cover my tenants' belongings?

    I have two houses that I use as rental properties. I want to insure the houses, but I was wondering if... Read Answer >>
  4. How can I make equity investments in real estate?

    Invest in real estate equity through buying and selling real property or through other more liquid investments like real ... Read Answer >>
  5. How accurate are online mortgage calculators?

    Discover how to use online mortgage calculators to get an accurate estimate for monthly payments and what inputs are necessary ... Read Answer >>
  6. What criteria does a property need to meet to be considered an 'investment grade' ...

    Learn what it takes for institutional investors to consider a property "investment grade," such as real estate investment ... Read Answer >>
Trading Center