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Among single-family developments, Homeowners’ Associations (HOA) are common, especially in new housing developments. Their purpose is to ensure properties in the community are well maintained and do not fall into disrepair, thus ensuring a stable property value. While monthly or annual dues are typically associated with HOAs, the dues are used to provide the community amenities like a community pool or amenity center. The dues are also used to maintain and landscape the common areas. Common areas are for the exclusive use of its members and their tenants or guests. Initially, the HOA is formed by the developer of a community for the purpose of marketing, managing and selling of lots/homes. Once a certain number of lots/homes have been sold, governing rights are transferred to the homeowners. An HOA is governed by a board, compromised of homeowners from the community. The board members can be elected or appointed, dependent on the HOA’s bylaws.
By buying a home in an HOA community, you automatically become a member of the association, agreeing to their rules, also known as Covenants, Conditions, and Restrictions (CC&Rs). CC&Rs will apply to you, the homeowner, and your home and property. The CC&Rs govern what you can do with and on your property. Examples include, but are not limited to, ownership of pets, noise restrictions, exterior paint choices, lawn maintenance/plants, exterior structures, etc. If the CC&Rs are violated, the HOA may impose a penalty, which could result in requiring the Homeowner to take measures to correct the violation(s) or assessing a fine.