Can You Refuse to Join a Homeowners’ Association?
With about 370,000 community associations in the United States, more than 77 million people are members of a homeowners’ association (HOA). While this reflects the growing popularity of community living and its benefits, potential homebuyers may have questions about these neighborhoods.
Are you required to be an HOA member when buying a home in that community? Can you refuse to join a homeowners’ association? If you’re wondering if you can opt out of an HOA, read on.
Understanding Homeowners’ Associations
A homeowners’ association is a nonprofit organization formed to run and manage a neighborhood. The HOA membership is made up of homeowners who contribute regular dues to maintain shared areas and amenities and protect home values.
Members also elect volunteer homeowners to the board of directors, which oversees association operations. The HOA board is responsible for enforcing the association’s governing documents, managing budgets, and maintaining community spaces.
Overall, an HOA serves the homeowners and works on their behalf. The residents fund the association to enjoy perks and create a positive living experience for everyone in the community.
The Legal Framework of HOAs
Every HOA has a set of governing documents that consist of association rules, restrictions, and community expectations. In the governing documents are the Codes, Covenants, and Restrictions (CC&Rs). These legally binding community procedures hold homeowners accountable for paying regular fees to maintain their HOA membership. At closing, a new homeowner with an HOA must sign a legal form acknowledging that they have read the HOA’s governing documents and agreed to abide by them.
Learn More: “A Breakdown of HOA Governing Documents”
Pros and Cons of HOAs
Homebuyers who are hesitant to commit to an HOA may have misconceptions about these communities. It’s important to understand the advantages and challenges you may face to make the best decision for you and your family.
Pros of Homeowners’ Associations
Every year, more and more people choose to live in HOAs for the many perks they offer to residents, including:
- Convenient amenities: Homeowners typically enjoy exclusive amenities like pools, fitness centers, dog parks, playgrounds, and clubhouses.
- Strong property values: Because HOAs maintain curb appeal and community safety, these neighborhoods tend to hold better property values.
- Sense of community: HOAs often host neighborhood events and gatherings that allow homeowners to connect.
- Enforceable standards: HOAs have standards that can be legally enforced, helping the community preserve a high-quality lifestyle.
Cons of Homeowners’ Associations
Although one-third of all U.S. housing is part of a community association, it may not be everyone’s preference. Here’s why:
- Homeowner restrictions: HOA rules protect the community’s harmony and lifestyle. However, some may find them difficult to follow. For example, restricting what color you can paint your house may not align with your goals.
- HOA dues and fees: As an HOA member, you must pay dues to the association to maintain the community. If you don’t want to contribute financially, HOA living may not be ideal.
- Violations: While many homeowners see strict rules as a community benefit, it does create the potential for violations and fines if you’re unable to comply.
Learn More: “Top Frequently Asked Questions About HOA Violations”
Can You Refuse to Join an HOA?
New homebuyers often ask what happens if you don’t join an HOA. In general, you automatically join the association if you purchase a home in a community with a mandatory HOA membership. You cannot reject HOA membership if you want to live within the association and enjoy the benefits of the neighborhood.
However, there may be some exceptions. Few HOAs allow membership to be voluntary. Homeowners might also be exempt from joining an HOA if the association is formed after they bought their home. It’s always best to seek guidance from a qualified professional, like a real estate agent, attorney, or community association manager, if you have questions about membership to your community.
What If I Just Ignore the HOA?
When you close on your home, you must agree to the governing documents, including the CC&Rs and your obligations as an HOA member. If you ignore your community duties and rules, the association may have the authority to impose penalties, such as:
- Distributing an initial warning
- Issuing fines
- Restricting amenity access
- Scheduling a non-compliance hearing
- Attaching a lien to your property
- Initiating eviction or foreclosure proceedings
What To Do Before Buying a Home With an HOA
Before you buy a home with a community association, do a deep dive into HOA living to prepare yourself. This way, you’ll avoid unexpected fees and fully understand what’s involved. Some steps that can help include:
- Reviewing community rules and expectations in the governing documents
- Researching fees, fines, and special assessments you may have to pay
- Getting to know the community by attending an event or talking to residents
- Asking about the financial stability of the association
You can speak to the HOA board or community manager if you need more information about the association and what to expect.
A Handbook for New HOA Residents
If you’re questioning: can you refuse to join a homeowners association?, it’s vital to educate yourself before making a decision. In most cases, you’re required to become an HOA member if you buy a home or condo that’s subject to the association’s governing documents.
Being part of an HOA offers several benefits and possibilities for residents. To make the most of the experience, learn as much as you can about your community and how the association operates. Check out our ebook, “A Handbook for New HOA Residents,” for a beginner’s guide to managed communities!