What Is an HOA?

How HOAs work

An HOA is a private governing body established when developers file legal covenants with the county before selling any homes. These documents attach to each property, making membership mandatory.

It’s often impossible to leave an HOA without selling your home.

Developers initially run the HOA, then hand control to a resident-elected board. “This transition significantly affects how the budgets, maintenance plans and enforcement of rules are carried out, since the board consists of people living in the community,” said Ryan McCallister, president and founder of F5 Mortgage, a mortgage company in Traverse City, Michigan.

The association enforces rules about property appearance, collects fees and maintains shared spaces. Consequences for non-payment are serious. “If you fail to pay the assessment, you may face a lien against the home or foreclosure,” McCallister cautioned.

Pro tip

Request the HOA’s governing documents (e.g., CC&Rs, bylaws, rules) before making an offer. These reveal what restrictions you’ll face and what fees you’ll pay, helping you spot potential deal-breakers early on.

» RELATED: Homebuyer’s checklist

Typical HOA rules, restrictions and types of communities

HOAs regulate nearly every visible aspect of your property, including but not limited to:

• Exterior paint colors
• Landscaping standards
• Parking restrictions
• Noise levels
• Pet policies
• Holiday decorations

Some associations ban RVs and boats from driveways, limit rental activity or require approval before you install a fence or shed.

The type of property you buy determines how restrictive your HOA will be, according to Matt Brown, a Naples, a real estate agent at William Raveis Real Estate in Naples, Florida.

How rules differ by property type

Pro tip

Look for rules that conflict with your lifestyle, such as pet restrictions (e.g., breed types, weight limits). Discovering these after closing can force you to rehome a pet.

How HOA rules impact homeowners

Beyond collecting fees, HOAs hold legal power — they can establish fines, place liens on homes for unpaid dues and enforce rules through their governing documents.

As a homeowner, you can access HOA documents, attend meetings and vote in elections. In return, you must pay assessments on time, maintain your property to the required standards and follow the rules. The HOA must operate in good faith, enforce rules and maintain common areas.

HOA pros and cons

Before moving into an HOA community, weigh the pros and cons:

HOA fees and special assessments

HOA fees range from $200 to $300 monthly for single-family homes and $300 to $400 or more for condos, depending on location and amenities. The exact breakdown varies, so request a detailed list before buying.

Here are the typical expenses HOA fees cover:

• Common area maintenance (parks, sidewalks, community roads, landscaping)
• Amenities (pools, fitness centers, tennis courts, clubhouses)
• Utilities (trash removal, recycling and sometimes water, cable and internet)
• Insurance for shared spaces
• Administrative costs (accounting, legal fees, management expenses)
• Reserve funds for future major repairs or improvements

Beyond regular fees, you might face special assessments. These one-time charges cover unexpected costs, such as emergency repairs after natural disasters, major capital improvements or budget shortfalls. Special assessments may require a homeowners vote and can reach thousands of dollars per household.

Pro tip

Compare the HOA’s reserve fund to industry benchmarks. A healthy association should have reserves funded at 70% or more of projected needs. Low reserves often lead to surprise special assessments.

HOA governance

Knowing how your HOA makes decisions helps you navigate community life and advocate for changes when needed.

How HOA boards work: Elections, roles and homeowner input

Most HOA boards include a president, vice president, secretary and treasurer, with some associations adding members-at-large to help manage tasks. The president leads meetings and oversees operations, the treasurer manages finances, the secretary keeps records, and the vice president steps in when needed.

Each HOA position carries specific responsibilities.

“Homeowners elect the board members at annual meetings to manage the association’s operations,” said Pavel Khaykin, founder of the real estate investment company Pavel Buys Houses in Boston, Massachusetts. You can vote in person, by mail or electronically, and sometimes, grant a proxy to another person.

Board members typically serve set terms, after which seats open for re-election or new candidates. Homeowners can get involved by attending meetings, voting in elections or volunteering for committees that shape proposals before they reach the full board for a vote.

Changing HOA rules and bylaws: Amendment process and rights

The process for changing HOA rules depends on what you're modifying. “The board can typically change operating rules with a simple majority vote, though it must provide notice to homeowners before the vote,” noted Khaykin. Day-to-day rules about pool hours or parking fall into this category.

Changes to bylaws and covenants are more complex: “These involve a homeowner vote, often a supermajority (67% or more),” Khaykin explained. “The process can require recording the change and is intentionally difficult to amend.”

HOA amendment process

Both board members and homeowners can propose amendments. The amendment process typically follows these steps:

1. Someone submits a written proposal.
2. The HOA provides advance notice to all members (requirements vary by state, but typically 15 to 30 days).
3. The community discusses the change at a meeting and members vote.

HOA membership: How to join and how to leave

Buying into an HOA community involves specific steps at closing, ongoing obligations throughout ownership and required disclosures when you sell. Here’s what to expect at each stage.

How to join and live in an HOA community

Before joining, some HOAs require you to complete an application or background check as part of the approval process. This helps the association verify new owners and maintain community standards.

At closing, you’ll handle these requirements:

• Initiation fees
• Reimbursement to the seller for prepaid dues
• Receipt of governing documents (CC&Rs, bylaws, rules)

Your HOA membership begins the day you close on the property. As a resident, you’ll maintain ongoing responsibilities beyond your mortgage. You must pay regular dues, stay current on community communications and ensure that guests or tenants comply with the rules.

Selling or leaving an HOA: What homeowners should know

Selling your home is the easiest way to leave an HOA. The association’s rules attach to the property through recorded covenants that bind every subsequent owner. Dissolving an HOA is technically possible but depends on state statutes and requires supermajority approval — a process so complex it rarely succeeds.

When you’re ready to sell, take these key steps:

• Work with a real estate agent experienced in HOA transactions.
• Notify the association of your intent to sell.
• Order the HOA resale package with governing documents and financial records.
• Settle outstanding dues, fines or violations (if any).
• Ensure your property complies with community standards.
• Provide documents to buyers after accepting an offer.
• Budget for resale package costs and transfer fees at closing.