FAQ

A homeowner association (HOA) is an organization tasked with governing the affairs of a real estate development owned by multiple parties, such as an apartment building. HOAs are responsible for tasks such as ensuring the building is regularly maintained, deciding on whether to pursue larger renovation projects, and drafting and enforcing the building’s bylaws. In order to fund its operations, HOAs charge their members monthly HOA fees, typically in the range of $200 to $400 per month. HOAs also have the authority to enforce the community’s bylaws, such as by imposing fines on residents who refuse to comply.

HOAs can benefit individual owners by providing necessary management services. For example, without an HOA the owners of an apartment building would need to coordinate among themselves to decide on common problems such as building-wide garbage removal, building repairs, and community policies. This could be very time-consuming for residents and could result in conflicts and disagreements between owners. On the other hand, HOAs can also create problems for owners to the extent that the owner disagrees with the HOA’s community bylaws or spending decisions.

Individual HOAs will have different levels of legal powers, depending on how they were designed. However, generally speaking, HOAs will have the legal authority to create and enforce community policies, such as whether smoking, pets, or rentals are allowed in the building. Also, HOAs will decide on budgets for the building and will have the authority to charge monthly or one-time fees to their members. If a member refuses to pay these fees or to comply with the community policies, HOAs can impose a range of penalties. In many cases, these penalties can include monetary fines, the restriction of community privileges, and even litigation.