Living in an HOA Community
If you are about to make the move from an apartment to a new home, you may be hearing the term “HOA” for the first time. This term is more than just three letters thrown together; it is an abbreviation for “Homeowners Association.” What does this mean for you and your new home? Are all homeowners members of this association? This article will help explain why you may be interacting with an HOA in your new home, and what the role of an HOA is.
What is an HOA?
HOAs are private organizations implemented in some subdivisions or master-planned communities to keep the community safe, clean, and consistent. They set and enforce rules and standards to help maintain property values and ensure that the neighborhood remains appealing and cohesive. The HOA is typically led by a board of directors, usually made up of homeowners who live within the community. Because they are governed within the community, standards and rules may vary across different HOAs. How strictly the standards are enforced can vary, as well.
The HOA will describe its rules in a document called a Declaration of Covenants, Conditions, and Restrictions (CC&Rs). These rules are meant to set certain conditions for owners about the maintenance of their properties. CC&Rs may include guidelines regarding exterior modifications, landscaping, trash and recycling, on-street parking, or quiet hours. Details on how violations will be enforced are also included in the CC&R document.
Benefits of Living in an HOA Community
Having an HOA to encourage the neighborhood to stay well-kept can positively impact your home value when it comes time to sell your home. However, HOAs are concerned with more than just the appearance of someone’s lawn. They are also set up to help resolve conflict in the community, organize events, and maintain common areas such as parks and walking trails.
Many HOA communities offer shared amenities like swimming pools, fitness centers, and community parks. These shared amenities give homeowners access to resources they might not be able to afford otherwise. Having common areas where you can gather also helps increase the sense of community. Meet your neighbors at the pool on a hot day, watch your kids enjoy time with their friends on a playground, and challenge your friends to a game of pickleball—all while remaining within walking distance from your house. You can enjoy all of these amenities without the stress of having to maintain them yourself.
Things to Consider Before Buying in an HOA Community
As part of your homebuying process, ask about the HOA fees and requirements. Oftentimes, you can review the community’s CC&Rs before you purchase your new home. It’s important to review these documents to ensure that their rules align with your lifestyle and neighborhood expectations.
If you are looking at homes in an HOA community, be sure to factor HOA fees into your monthly budget. HOA fees can range from less than $100 a month to $1,000 or more. While they can provide incredibly valuable services that save you money on maintenance and offer access to fantastic amenities, these fees can vary widely and should be considered in your overall financial plan.
In general, part of your homebuying journey should include thinking about the type of community you would feel comfortable living in. Would you prefer a neighborhood with guidelines that ensure consistency, or a more relaxed setting with fewer restrictions? Is it important to you to have amenities within your community? Think about the lifestyle you want and how the community you are considering can align with it.
LGI + HOA
Want to learn more about if a community has an HOA and what their regulations entail? Find an LGI community near you and get in contact with one of our New Homes Consultants by simply clicking “Request Info,” or by calling the Information Center number.