What is an HOA? Here is a complete guide to homeowners associations.

Key takeaways

• About 30% of Americans live in a homeowners association (HOA), a nonprofit organization that manages rules, amenities and shared services in planned communities, condominiums and cooperatives. Membership is typically mandatory when purchasing a home in the community. 
• Average HOA dues are about $191 per month nationwide and commonly cover landscaping, trash collection, snow removal, maintenance and shared amenities. Associations may also charge special assessments to pay for major or unexpected expenses. 
• HOAs enforce community standards through governing documents known as Covenants, Conditions and Restrictions (CC&Rs). Enforcement can include warning notices, fines and legal action if violations are not corrected. 

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

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

An HOA is an organization of homeowners within a defined community that collectively manages shared property, amenities and community rules. Most HOAs are incorporated as nonprofit organizations and are governed by state laws, which vary significantly across the country.

While some early HOAs were created by residents after neighborhoods were established, most modern associations are formed by developers during construction. After enough homes are sold, control is typically transferred to homeowners, who elect a board of directors and operate the association according to its governing documents.

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

Related content:

• HOA fees explained: What every buyer should know
• Buying a home in 10 steps

HOAs emerged in the early 20th century alongside planned residential developments. Some early associations used restrictive covenants that limited homeownership based on race, religion or other discriminatory criteria.

Such practices were later outlawed. Racially restrictive covenants became unenforceable following U.S. Supreme Court decisions, and the Fair Housing Act of 1968 prohibited housing discrimination nationwide.

Although modern HOAs cannot legally discriminate, their history remains part of broader discussions about housing access and regulation.

Source: Foundation for Community Association Research

HOAs are responsible for maintaining common areas, managing shared amenities and enforcing community standards intended to preserve property values and quality of life.

• Coordinating landscaping, pest control and trash removal 
• Maintaining pools, clubhouses, fitness centers and other amenities 
• Managing common property and infrastructure 
• Organizing community events and programs 

HOAs are governed by elected boards composed of homeowners. Boards oversee finances, rulemaking and policy enforcement and often hire professional management companies to handle day-to-day operations.

Many associations also rely on committees focused on areas such as:

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

Voting rights are typically limited to property owners, while renters generally do not participate in HOA elections.

• Clear expectations: CC&Rs establish standards for property appearance, behavior and property use. 
• Shared services and amenities: Dues often cover maintenance, landscaping, trash collection, security and amenities such as pools, parks and fitness centers. 
• Property value protection: Consistent standards may help preserve neighborhood appearance and property values. 
• Community engagement: Many associations organize events and activities that help foster a sense of community. 
• Dispute resolution: HOAs may help mediate conflicts between neighbors. 

• Fees and assessments: Monthly dues increase housing costs, and special assessments can be expensive. 
• Restrictions: Homeowners may face limits on property modifications and usage. 
• Inefficiency: Some associations are slow to approve requests or address maintenance concerns. 
• Mismanagement: Volunteer board members may lack experience or expertise. 

HOA dues are established through governing documents and may increase over time. According to the U.S. Census Bureau, in 2024 about 26% of homeowners paid less than $50 per month in HOA fees, while roughly 3 million households paid more than $500 per month.

Dues commonly pay for:

• Landscaping and groundskeeping 
• Trash collection 
• Parking and road maintenance 
• Snow removal 
• Security 
• Shared amenities 
• Utilities for common areas 

Associations typically maintain reserve funds for future repairs and capital projects. If reserves are insufficient, boards may impose special assessments for major repairs, legal expenses or other unexpected costs.

Most HOA rules fall into four broad categories:

• Architectural guidelines: Exterior modifications, paint colors, fences and roofing. 
• Landscaping standards: Yard maintenance and property upkeep. 
• Amenity use policies: Access and use of shared facilities. 
• Conduct rules: Noise, parking, pets and short-term rentals. 

1. Written warning notice. 
2. Fines for unresolved violations. 
3. Legal action, including liens in severe cases. 

Before purchasing a home in an HOA community, review the association's governing documents and ask questions such as:

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

Pay particular attention to:

• CC&Rs and owner obligations 
• Bylaws and governance procedures 
• Rules regarding parking, landscaping and exterior modifications 
• Articles of incorporation 
• Services provided by the HOA 

Ask for:

• The current budget 
• Reserve fund balances 
• Outstanding debts 
• Planned capital projects 
• Pending litigation 
• Insurance coverage 

Review:

• Monthly or annual dues 
• Special assessment history 
• Potential fee increases 
• Fine schedules and enforcement policies 

Attend meetings if possible, review meeting minutes and talk with current residents. Walking the neighborhood can also reveal how well common areas are maintained and provide insight into how effectively the association operates.

HOA members have rights and obligations defined by governing documents and state law. Homeowners can typically attend meetings, vote in elections and participate on committees. Active involvement can have a significant impact on both the association's effectiveness and the community's overall quality of life.

Dave Hansen contributed to this story.