3
1. HOMEOWNERS'
ASSOCIATION
(HOA)
What It Is: A homeowners' association (HOA) is
a non-profit organization that's set up to help run,
manage, and maintain a neighborhood, building,
or another collective of homes. Membership
participation is typically mandatory when purchasing
property within the community.
Types of Homes:
• Detached, single-family neighborhoods
• Townhome developments
• Planned subdivisions
How It Operates: Homeowners elect a volunteer
board of directors which operates the HOA. Among
many other duties, the board is primarily responsible
for enforcing the rules, managing the community's
finances, and maintaining common areas. An HOA's
governing documents detail specific board tasks,
powers, and duties.
What Fees Cover:
• Maintenance of shared property
• Landscaping within common areas
• Community amenities
• Insurance for association-owned assets
• Reserve contributions for future capital repairs
• Management and administration fees
7
6
5
4
8
9
10
11
3
2
