Homeowners Association
Date of Last Revision: August 8, 2026
What Is a Homeowners Association (HOA)?
An HOA, or Homeowners Association, is a “group of homeowners in a defined area” which could range from a two-unit townhome, a development of condos, or an entire master-planned neighborhood of single family homes.
Most HOAs are non-profits, and the money generated from them is used to upkeep the shared property including landscaping and community areas.
HOAs have boards, and volunteering to sit on one can work to your advantage. Not only will you become extra familiar with the rules, but you will get to know your neighbors and have a say in how your home is run.
Homeowners Associations (HOAs) play a crucial role in managing the rules and maintenance of properties within subdivisions, planned communities, and condo buildings. Each homeowner within an HOA jurisdiction becomes a member, binding them to its rules and fees. Typically managed by a board of directors, HOAs may restrict members' property usage, yet also offer community benefits, from amenities like pools and tennis courts to organized maintenance and landscaping.
Key Takeaways
A homeowners association (HOA) is an organization that governs a community's common areas and enforces property rules, funded by member fees.
HOAs require membership from homeowners within their jurisdiction, often mandating compliance with regulations outlined in the Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
HOA fees, ranging from $200 to $400 monthly (and much higher for condos location in city centers and highly desirable locations), support maintenance, amenities, and reserve funds, and can include special assessments for unexpected expenses.
Prospective buyers may be deterred by HOA fees and strict regulations, while proponents argue that HOAs help maintain property values and community standards.
An HOA's board, often composed of community residents, enforces rules and manages finances, holding legal authority to impose fines and litigate as necessary.
Most HOAs are nonprofit corporations initially created by the developer who establishes the subdivision. The developer agrees to form an HOA in order for the local city or county to agree to the planned neighborhood and ensure basic utilities are provided for residents.
A group of neighbors can form an HOA for an existing community as well, although they're more likely to be voluntary and serve more of a social and political role than an HOA that organizes utilities and other services.
Types of Properties With HOAs
HOAs are common in communities constructed by a single developer. The Community Associations Institute estimates that more than 74 million people in the U.S. live under a community association, which includes HOAs of single-family houses, condominium associations, townhomes, master-planned communities and cooperatives.
Community of single-family houses. An HOA for a sprawling neighborhood of single-family houses can be limited to covering services like garbage pickup and sewer connection, or include gated security, a club house with a pool and even a golf course.
Condominium community. In a condo community, the HOA covers all common space, some utilities and often the exterior of the buildings, which are considered shared property.
Townhome community. A homeowners association of townhomes will often be responsible for the shared walls between townhomes, in addition to any other common space.
Master-planned community. A large community consisting of single-family houses, townhomes, retail and offices will have an HOA that manages all common space for residential properties, but also work with the management or chamber of commerce that oversees commercial properties in the community.
Cooperative. Cooperative housing is not exactly the same as an HOA, but there are many similarities – there is a governing board that can amend rules and enforce them. However, by living in a co-op you do not purchase an individual home like you would with a condo or house, but shares in ownership of the entire building. A co-op has the oversight to approve or decline new potential members – so if you're looking to buy into a co-op, your financial history or the type of pet you have could be scrutinized.
Are condo/co-op fees or homeowners' association dues included in my monthly mortgage payment?
Usually not. Condo/co-op fees or homeowners’ association dues are usually paid directly to the homeowners’ association (HOA) and are not included in the payment you make to your mortgage servicer.
Condominiums, co-ops, and some neighborhoods may require you to join the local homeowners’ association and pay dues (HOA dues).
Tip: Homeowners’ association dues can range from a few hundred dollars a month to more than one thousand dollars a month. Be sure to factor in this cost when deciding if you can afford the mortgage to purchase a home or refinance.
Although not common, your mortgage servicer may be willing to include your HOA dues in the escrow portion of your monthly mortgage payment upon request.
Are HOAs Worth the Money?
Depending on the type of home you purchase and services and amenities covered in the monthly dues, your HOA fee s could be less than $100 per month or thousands of dollars per month.
Whether you consider paying to be part of an HOA worth the additional monthly or annual fees is subjective. If you're considering buying a home that's part of an HOA, you may find that you love the additional services the community provides and the subsequent boost to your property value, or you may find that the rules and regulations many HOAs establish to be restricting.
When you buy a home in an HOA community, you're agreeing to abide by the rules and pay dues as decided by the governing body. Here are five things to know about HOAs before closing on a home.
Know the HOA's Rules
When an HOA is created, the developer establishes a declaration and initial bylaws, which act as the organizational base for the community. Eventually, the developer will turn over management of the HOA to the homeowners, represented by an elected board of volunteers within the community. The board can discuss and propose changes to bylaws, set covenants, establish the annual HOA budget and choose vendors for work throughout the community.
All homes built under the HOA are forever tied to the association, which means if you purchase a house that's part of an HOA, you are agreeing to comply with the rules regardless of whether you think they make sense. You may need permission to put a shed in your backyard, or you may not be allowed to paint your front door blue, for example. If you're not willing to follow the rules, your best option is to buy a house elsewhere.
You do have the opportunity to know what you're getting into ahead of time, however. Homebuyers under contract on a home that's part of an HOA typically have three days to review all association documents, with no penalty for backing out if an issue arises, but you may be able to review them earlier.
Know How Much Your HOA Fees Are and What They Cover
Costs vary based on what services the HOA needs to organize. For example, if your sewer maintenance and trash collection are paid for separately, your HOA dues don't have to cover those services. Some subdivisions need only utility and maintenance care. Others focus more on making the space feel like an exclusive community, with tennis courts and gatherings maintained and planned with dues.
You're required to pay all dues established by the HOA, even if you don't take advantage of amenities like common areas. If you refuse to pay, you can find yourself in a heap of financial issues, including a lien on your property that can keep you from selling your house before paying off the debt.
Factor your dues into the monthly cost of your mortgage, as it can lower your effective budget to purchase the home. When working with a lender in particular, "your preapproval number comes down,"
If you find yourself owing money to the association for another reason – because you damaged a fence or sign, for example – you're liable for those costs, too.
Inquire About Your HOA's Legal Power
Most states have laws clearly defining the role of an HOA that are often adopted from recommendations in the Uniform Common Interest Ownership Act, created in 1982 by the Uniform Law Commissioners, a nonpartisan group of attorneys that established the general legislation for HOAs and have regularly maintained it since. The uniform law includes guidelines for holding HOA board elections and what bylaws may or may not prohibit.
Pay Attention
Once you're living under an HOA, it's important to pay attention. You not only want to know the existing HOA rules before you take ownership of the house, but you also want to read the minutes of previous and upcoming board meetings to know what's going on.
If board meetings are open for all members to attend or there are occasional public forum meetings, it's important to attend and be able to weigh in on future decisions. HOAs often only feel restrictive when you aren't aware a decision you don't like has already been made.
Having a dispute with the board is probably the biggest concern for most homebuyers considering a property under HOA jurisdiction, but the number of property owners who report being dissatisfied with their HOA is in the minority. CAI's 2020 Homeowner Satisfaction Survey found 71% of residents say their HOA's rules protect and enhance property values, and 23% believed the rules have a neutral effect – only 4% believed the HOA rules harmed property values.
Get Involved
The best course of action to ensure you support any moves your HOA makes is to get involved yourself. Running for a board or committee position will help you get to know your neighbors better, and if you're elected, you'll have a key role in ensuring all voices are heard. Not to mention that you'll have a say in rules and policies to ensure they improve the community and increase property values without overreaching.
HOA Alternatives
If you don't agree with HOA policies or can't afford the dues, you can choose to live outside an HOA by purchasing a home in a neighborhood that does not have a governing community association. While house hunting, make it clear to your real estate agent that you do not want to live under an HOA.
While plenty of condo communities and single-family home communities outside the city have HOAs, Plenty of neighborhoods that are HOA-free. Older neighborhoods within the city are less likely to have a governing HOA. Suburbs may offer a similar, high-end feel of a luxury community, but instead of paying HOA dues "you essentially pay a higher tax to have your own police station and other features.
You also have the option to rent rather than own a home. While having a landlord will still mean you have rules to abide by, you don't have to be concerned about how the community's changes could impact your home value.
HOA Organization
A homeowners association (HOA) is an organization that makes and enforces rules and guidelines for a residential subdivision, planned community, or condominium building. In most cases, residents within the subdivision, community, or building must become members of the HOA, agree to follow the HOA’s rules, and pay HOA fees and assessments. HOAs are usually governed by a board of directors or governors that is elected by the homeowners to make decisions about the HOA and enforce its rules. Most HOAs in California are set up as nonprofit mutual benefit corporations, but some may be structured differently.
HOA Rules and Bylaws
The covenants, conditions, and restrictions (CC&Rs) are a set of rules that govern the operation of an HOA, including what rights and responsibilities the HOA has, what requirements and limitations homeowners must follow (for example, regulations on fencing height and placement), and what remedies there are for violations. Each HOA’s CC&Rs may be different. In addition to the CC&Rs, most HOAs have bylaws that establish how the HOA is run, as well as rules and regulations established by the HOA board.
Applicable Laws
A number of laws apply to HOAs, including the following:
The Davis-Stirling Common Interest Development Act is a body of laws that govern HOAs in California, including rights and requirements regarding board elections, finances, maintenance responsibilities, dispute resolution, and many other matters. (Civil Code, § 4000 et seq.)
The Fair Employment and Housing Act prohibits discrimination in employment and housing based on protected characteristics, including race, color, national origin, religion, disability, gender, gender identity, familial status, and sexual orientation. (Government Code, § 12900 et seq.)
The Nonprofit Mutual Benefit Corporation Law applies to most HOAs, which are usually set up as nonprofit mutual benefit corporations. (Corporations Code, § 7110 et seq.)
Other laws, including provisions in the Civil Code and Corporations Code, may also apply.
Issues with HOAs
If you are having issues with your HOA, you may wish to review the HOA’s rules to see what recourse you may have. You may also consider consulting with an attorney regarding your legal options.
If you suspect criminal activity, such as fraud, theft or embezzlement by the HOA's board of directors or individual officers, please file a report with the police or sheriff's department. After investigating, they may send the case to the county district attorney's office for prosecution, if appropriate. The decision whether or not to file criminal charges will then be made by the district attorney.
Additional information about HOAs is available from the Department of Real Estate.