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. Condominium

    A large property complex that is divided into individual units ...
Related Articles
  1. Does Condo Life Suit You?
    Retirement

    Does Condo Life Suit You?

  2. 9 Things You Need To Know About Homeowners' ...
    Home & Auto

    9 Things You Need To Know About Homeowners' ...

  3. Condo Complications: The Issues Behind ...
    Home & Auto

    Condo Complications: The Issues Behind ...

  4. An Introduction To Buying A Condominium
    Home & Auto

    An Introduction To Buying A Condominium

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center