HOA 101

More than 75 million Americans live in communities with a Homeowners Association (HOA). Typically, HOAs are run by volunteer boards that oversee the upkeep of neighborhood amenities, such as the pool, fitness center, landscaping, maintenance, trash removal, and utilities. They help maintain community standards by guiding architectural updates and exterior paint selections.

If you're considering buying a home in an HOA community, it's helpful to know what to expect as a homeowner. When you buy a home in an HOA community, membership is mandatory.

Review the neighborhood's Covenants, Conditions and Restrictions (CC&Rs) to gain an understanding of the services provided by the HOA as well as community rules, expectations, dues, and any additional fees. CC&Rs are designed to help preserve property values and maintain the character of the neighborhood.

Your dues help cover expenses such as community management fees, operational costs, and insurance for common areas. Many HOAs also have a reserve fund for future or unexpected expenses.

Pros of Living in an HOA

• Well-maintained neighborhoods

• Protected property values

• Access to shared amenities

• Less personal maintenance in some communities

Potential Cons to Consider

• Monthly dues and possible special assessments

• Restrictions on personalization

• Fines for rule violations

• Varying quality of management

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