Homeowners Association (HOA)

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Definition of 'Homeowners Association (HOA)'

A homeowners association (HOA) is a private organization that is responsible for the maintenance and upkeep of common areas in a residential community. HOAs are typically formed when a group of homeowners purchase homes in a new development. The HOA's governing documents, which are usually called the bylaws, set forth the association's mission, powers, and procedures. The bylaws also typically establish dues and fees that homeowners must pay to support the association's activities.

HOAs are responsible for a wide range of tasks, including:

* Maintaining common areas, such as roads, sidewalks, and parks
* Providing security and pest control
* Enforcing community rules and regulations
* Collecting dues and fees from homeowners
* Managing the association's finances

HOAs can be a valuable resource for homeowners, providing them with the services and support they need to maintain their homes and enjoy their communities. However, HOAs can also be controversial, as some homeowners feel that they are too restrictive or that they do not provide enough value for the money.

Before buying a home in a community with an HOA, it is important to carefully review the association's governing documents and to attend a board meeting or two to get a sense of how the association is run. It is also important to understand the association's financial situation and to make sure that you are comfortable with the amount of dues and fees that are required.

If you are considering buying a home in a community with an HOA, it is important to do your research and to make sure that you understand the association's role and responsibilities before you make a purchase.

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