5 Key Facts You Should Know About The Purpose of an HOA

Even if you reside in a homeowner’s association (HOA), you may not be fully aware of its purpose. In this article, we will address five commonly asked questions regarding what an HOA is and what it entails.

1 – Understanding the HOA

HOAs are private organizations responsible for managing and overseeing the day-to-day operations of their communities. Within an HOA, the association owns and manages common areas, including amenities, streets, and lighting, which are separate from individual lot ownership. The board of directors ensures a harmonious coexistence among all residents, both owners and renters alike.

This involves upholding and enforcing the Covenants, Conditions, and Restrictions (CC&Rs), as well as various governing documents such as the Articles of Incorporation and By-Laws.

2 – Management of an HOA

The Board of Directors

Homeowner’s associations are governed by a board of directors who make decisions on behalf of the association. These board members are residents who volunteer their time and effort to maintain and enhance the community. Their election is conducted by the community members themselves.

Community Association Manager

In some cases, HOAs may choose to enlist the help of a community association management company to handle the day-to-day operations. This can be highly beneficial, as the manager takes on numerous responsibilities. However, it is crucial to foster a good working relationship between the manager and the board. Failure to do so can result in tensions. The decision to hire a manager also comes with financial commitments that may not be feasible for all communities.

It is important to note that having a board is essential to hold the property management company accountable and effectively communicate the expectations and demands of the board and residents.

3 – Role of the Board of Directors

As mentioned earlier, the board serves as the governing body of an HOA. At a minimum, it consists of three members: the president, the secretary, and the treasurer.

Board members are elected from the community residents and typically serve terms of 1 to 2 years. A proactive, knowledgeable, and engaged board can significantly impact community operations and resident satisfaction. Their responsibilities include mediating disputes, upholding the CC&Rs and by-laws, managing maintenance and fees, and acting in the homeowners’ best interest.

4 – Committees within an HOA

While not mandatory, committees are prevalent in many larger HOAs. They serve as task forces within the association, tackling specific projects or responsibilities. In some cases, committees become permanent entities responsible for governing documents, known as “Standing Committees.” Examples include architectural review, landscaping, and budget committees.

Committees are formed by the board and encompass diverse residents with varying backgrounds, education, and availability.

5 – Understanding the Purpose of an HOA

The purpose of an HOA is to create and maintain a secure and harmonious living environment where residents can enjoy community life. This requires adherence to certain rules and regulations, including restrictions on home modifications. The combination of board and owner maintenance, along with thorough screening processes, contributes to the stability of home values within an HOA. Thus, part of the HOA’s purpose is to uphold property values.

Joining an HOA involves a trade-off, where residents may sacrifice some privacy but gain a greater sense of community and accountability.

Wrapping Up the Purpose of an HOA

In conclusion, an HOA is a homeowners association governed by a board of directors, often assisted by a manager and committees. HOAs play a crucial role in maintaining property values and cultivating secure and enjoyable neighborhoods.

For more comprehensive information on community associations, including statistics, document explanations, roles within the HOA, and dispelling myths, refer to our ultimate guide!