What is an HOA? A complete guide to homeowners associations

Key takeaways

• About 30% of Americans live in a homeowners association, a nonprofit organization that manages rules, amenities and shared services in planned communities, condominiums and cooperatives. Membership is typically mandatory when buying in the community. 
• Average HOA dues are $191 per month nationwide, generally covering services such as landscaping, trash and snow removal, security and maintenance of shared amenities. Associations may also levy special assessments to cover major or unexpected expenses. 
• HOAs enforce community standards through written rules known as Covenants, Conditions and Restrictions, or CC&Rs. Enforcement typically follows a structured process that can include warning notices, fines and legal action, including placing a lien, if violations are not resolved.

Homeowners associations, commonly known as HOAs, are increasingly common across the United States.

About 30% of Americans live in a community association, including planned communities, condominium communities and housing cooperatives, according to the Foundation for Community Association Research.

For some buyers, the presence of an HOA can be a deciding factor when choosing a home. Others may move into an HOA-managed neighborhood without fully understanding what the association does or how it operates.

An HOA is an organization made up of homeowners within a defined community who collectively manage and maintain shared rules, services and amenities. Most HOAs are incorporated as nonprofit organizations and are governed by state laws specific to homeowners associations. In some states, HOAs fall under the same statutes that regulate nonprofit corporations.

Regulation varies widely by state. Some states have extensive HOA-specific laws, while others have little or no formal oversight. States with the most HOA statutes tend to have the largest number of associations. California and Florida lead the nation, each with nearly 50,000 registered HOAs.

Historically, some homeowners associations were formed by residents who chose to organize after neighborhoods were built. Today, HOAs are more commonly established by developers during construction. Once enough homes are sold, the developer typically transfers control to the homeowners, who elect a board and operate the association under established governing documents.

Membership in an HOA is generally automatic and mandatory when purchasing a home in an HOA-governed community.

Homeowners associations date back to the early 20th century, emerging alongside planned development in growing U.S. cities, particularly on the West Coast. Many early associations, however, were founded on discriminatory practices, including covenants that restricted homeownership based on race or religion or required prohibitively expensive construction.

The U.S. Supreme Court ruled racially restrictive covenants unenforceable, but some persisted through private contracts until the Fair Housing Act of 1968 banned housing discrimination nationwide.

Modern HOAs are legally prohibited from discriminatory practices, but their historical roots continue to shape conversations about housing access and regulation.

Homeowners associations offer both benefits and drawbacks, depending on homeowner preferences and how well the association is managed.

Pros

• Clear expectations: CC&Rs define community standards for appearance, behavior and property use, reducing ambiguity for residents. 
• Shared services and amenities: HOA dues typically cover services such as landscaping, trash collection, snow removal and security, as well as amenities like pools, parks, fitness centers and clubhouses. 
• Property value protection: Uniform standards and enforcement can help maintain neighborhood appearance and protect property values. 
• Community engagement: HOAs often organize neighborhood events, such as block parties or holiday celebrations, which can foster a sense of community. 
• Dispute resolution: Associations may help mediate disputes between neighbors before conflicts escalate. 

Cons

• Fees and assessments: Monthly dues add to housing costs, and special assessments can be unpredictable and expensive. 
• Restrictions: Some homeowners object to limits on how they can use or modify their property. 
• Inefficiency: Poorly run associations may move slowly on approvals, variances or maintenance issues. 
• Mismanagement: Volunteer boards vary in experience and professionalism, which can lead to frustration among residents. 

The primary role of an HOA is to establish and enforce community rules and manage shared resources. These standards are intended to maintain property values and support residents’ quality of life.

HOAs also handle logistical responsibilities that would be difficult for individual homeowners to manage alone, including maintaining amenities, coordinating service providers and organizing community activities.

Common HOA functions include:

• Scheduling landscaping, pest control and trash services 
• Maintaining pools, fitness centers and common buildings 
• Organizing community events and neighborhood programs 

HOAs are run by homeowners. An elected board oversees finances, rulemaking and policy enforcement and may hire a professional management company to handle day-to-day operations.

Committees often support the board by focusing on specific areas, such as:

• Architectural review 
• Finance and budgeting 
• Communications and events 
• Landscaping and safety 

Committee roles allow more residents to participate while leveraging specialized skills.Voting rights are typically limited to property owners. Renters generally do not vote, and many HOAs limit owners to one vote regardless of how many properties they own within the community.

HOA dues are outlined in the association’s governing documents and may change annually. These fees can range greatly. According to the U.S. Census Bureau, in 2024, about 5.6 million or 26% of homes paid less than $50 a month and about 3 million homes paid more than $500 a month.

Dues commonly cover:

• Landscaping and groundskeeping 
• Trash removal and cleaning 
• Parking and road maintenance 
• Snow removal 
• Security services 
• Maintenance of shared amenities 
• Utilities for common areas 

A portion of dues is often allocated to a reserve fund, which is used for long-term projects or major repairs. Property taxes are not included and remain the homeowner’s responsibility.

When reserve funds fall short, associations may impose special assessments to cover significant or unexpected costs, such as major repairs or legal expenses. Boards generally discuss these assessments in open meetings before implementation.

Most HOA rules fall into several broad categories:

• Architectural guidelines: Regulate exterior changes, such as fencing, paint colors, roofing and visible fixtures. HOAs typically offer a variance process. 
• Landscaping and maintenance standards: May require homeowners to maintain yards or allow the HOA to handle maintenance communitywide. 
• Amenity use policies: Govern access, hours and reservation systems for shared spaces. 
• Conduct rules: Address noise, parking, pets and, increasingly, short-term rentals. 

Enforcement usually follows a structured process:

1. Warning notice: Written notification outlining the violation and deadline for correction. 
2. Fines: Monetary penalties if violations persist, sometimes accruing daily. 
3. Legal action: In extreme cases, associations may place liens or pursue court action. 

Prospective buyers should review HOA documents carefully and ask questions before closing, including:

• Is membership mandatory? 
• What services do dues cover? 
• How often have fees increased? 
• Does the HOA maintain a reserve fund? 
• How frequently has it imposed special assessments? 

Buyers can access HOA records through real estate agents, board members or public filings required to maintain nonprofit status.

HOA members have legally defined rights and obligations outlined in governing documents. Residents may attend meetings, vote in elections and influence how their community is managed. Active participation can significantly affect the HOA’s effectiveness — and the overall living experience.

This story was updated April 7.