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HOA BASICS What's an HOA? A homeowners' association (HOA) is a non-profit organization set up to help run, manage, and maintain a neighborhood, building, or another collective of homes. People who belong to an HOA pay fees, which are used to maintain shared spaces and complete other duties like covenant compliance, meeting management, and financial planning. An elected board of volunteers runs the HOA on behalf of homeowners. The HOA board works with professional partners to ensure responsibilities are carried out according to the rules, regulations, governing documents, and applicable laws. HOA Primary Objectives The main objectives of an HOA include, but aren't limited to: • Administering association business • Maintaining shared property • Enhancing residential real estate development • Establishing a system of property rights • Creating and enforcing rules and regulations 3 Things HOAs Have in Common An HOA might look and feel slightly different depending on the community. However, there are three things all associations have in common: 1. Mandatory Membership A defining characteristic of an HOA is mandatory and automatic membership for all residents. This mandate allows an HOA to operate and distributes the costs among a community equally. 2. Binding Documents HOAs have governing documents that are legally binding. These documents give an association authority to operate and hold owners responsible for paying required fees, fines, and assessments. 3. Lien-Based Assessments Lien-based assessments give HOAs the power to enforce rules and governing documents. The lien authorizes the HOA to take possession of a home if charges aren't paid, or rules are repeatedly ignored.

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