Homeowners Association

Homeowners association summary: 

• A homeowners association is a bit like a mini local government in which elected members oversee a residential community. 

• HOAs are typically responsible for maintaining shared spaces, enforcing community rules, and collecting maintenance and upkeep fees.

• The median HOA fee is around $135 a month, depending on where you live. 

Homeowners association definition and meaning 

A homeowners association (HOA) is a nonprofit organization that operates in residential communities to manage common spaces. It collects fees and should use the money for maintenance and the upkeep of shared facilities. It also sets and enforces rules, which can impact everything from parking to pets and paintwork.

Key concept: A governing body for a residential community that creates and enforces rules to maintain uniformity, preserve property values, and manage shared amenities.

More on homeowners association

Around a third of U.S. homes are part of homeowners associations, making HOAs a part of many peoples' lives. On the plus side, the HOA may take care of tasks like snow clearance or pest control. They may also maintain amenities such as a fitness center or playground. However, the fees could eat into your budget, and some find the rules overly restrictive. 

HOA rules may apply to both the exterior of your property, as well as inside, especially in situations that affect a building's structural integrity, soundproofing, or shared mechanical systems like plumbing and electrical. Restrictions could also cover things like flooring and window coverings to conform to community standards.

Key features of a homeowners association

The rules of an HOA community are described in its Declaration of Covenants, Conditions, and Restrictions (CC&Rs), a legal document that describes what you can and can't do with your home, including agreements, conditions, and restrictions.

The HOA features that could impact you most are fees and rules. If you live in a neighborhood with a mandatory HOA, membership is part of living in that community—you don't get a choice. 

HOA fees

HOA fees or dues vary depending on the state, property type, and the available amenities. Fees are higher for larger properties with swimming pools or golf courses. If you rent, the landlord may pay the fees, but that depends on what's written in your lease agreement. 

In 2025, the monthly median condo HOA fee is $135. Around a quarter of homes pay less than $50 a month. That money may pay for communal costs like street cleaning, insurance, and utility bills for shared spaces.

HOA rules

HOA rules impact owners and renters alike. They are usually written when the association is formed and can be changed or adapted as the community grows. The idea is to set common standards that maintain property values and maintain uniformity. 

Common HOA rules include:

• Property upkeep and garden or lawn maintenance

• Exterior design, such as the color you paint your home

• Trash management and parking controls

• Outside decor, flag displays, and holiday decorations

• Pet policies that may limit the number and types of pets you can have

• Noise regulations and rules on whether you're able to rent out your home

If you're moving into an area with a homeowners association, it's important to understand what's expected. If you break the rules, you're likely to receive a warning at first. But that could escalate to fines or, in extreme cases, legal action. 

Real-life example of a homeowners association 

Tanya owns a townhouse in a suburban neighborhood with an HOA. She pays $300 a month in HOA fees. In return, the HOA handles snow removal from driveways and sidewalks, keeps the shared landscaping tidy, and maintains the community playground and gym.

The HOA provides convenience. Tanya doesn’t have to mow her front lawn or find a pest control service when ants appear in the summer. But there are tradeoffs. The monthly fees make her budget tighter, and the HOA’s strict rules about exterior paint colors and where guests can park sometimes feel frustrating.

What happens if you can't pay your HOA fees

If you're struggling to keep on top of your bills, you might wonder where HOA fees sit on the priority list. HOA dues are part of your essential housing costs, like your rent or mortgage. In a worst-case scenario, failure to pay HOA debts could cost you your home. 

Third-party debt relief may not be possible for HOA debts. If you're having trouble paying your fees, talk to the HOA and find out if you can work out a payment plan. If you fall behind with your HOA fees, there may be a grace period of a couple of weeks, but after that, you could face late fees and interest charges on the money you owe. Your HOA could then take legal action or pass the debt to a collections agency. 

Depending on your state and the bylaws of your HOA, the association may pursue a lien on your home, which could eventually lead to foreclosure. If you're considering filing for bankruptcy, this could cover any HOA debts and help you avoid foreclosure.