What is an HOA?

Many homeowners reside in a housing subdivision, planned development or condominium with an accompanying homeowners association (HOA). An HOA is a legal organization that represents its homeowners’ collective interests. To do so, the HOA governs the community through Covenants, Codes & Restrictions (CC&Rs). While each homeowner in such a community is a member of its HOA, a few elected volunteers comprise a board of directors to carry out HOA duties outlined in the CC&Rs. These duties include the collection of monthly dues, from which funds are used to service various community interests, such as street maintenance, community landscaping, and building-wide heating. Often, the CC&Rs of an HOA will require some fraction (~⅓) of monthly dues to be set aside in a reserve fund. Reserves add financial security for the community’s future needs, and in turn provides peace of mind to current and future homeowners in the community. Overall, an HOA exists to improve the living experiences and to protect the interests of its homeowners.