Even if you live in a homeowner’s association (HOA), you may not know what the purpose of an HOA actually is. Here we’re going to answer 5 frequently asked questions about what an HOA is and what it does.

1 – What is an HOA?

HOAs are private associations that manage and oversee the day-to-day activities of their community. In an HOA, common areas are owned by the association, and they’re managed by the board of directors. These include amenities, streets, lights, and anything that isn’t in an owner’s private lot. The board is also responsible for maintaining a harmonious coexistence between all residents (both owners and renters). 

This means ensuring that the residents follow and respect the Covenants, Conditions, and Restrictions (CC&Rs), as well as the different Articles of Incorporation, By-Laws, and any other governing documents.

2 – Who runs an HOA? 

The Board of Directors

Homeowners associations are run by a board of directors who act as the decision-makers for the association. The board is composed of members, who are residents who volunteer for the board. They actively work to maintain and improve their associations and have been elected to do so by the rest of the community.

Community Association Manager

Some communities might choose to hire a community association management company to help the board with the day-to-day running of the community. This is normally very helpful, as the manager will take on a lot of tasks. However, there has to be a good relationship between the manager, and the board. If there isn’t a good relationship, tensions can arise. The decision to hire a manager to manage the association also involves a financial commitment that not all communities are ready or willing to make. 

It’s important to remember that an association will still need a board to hold the property management company accountable and to properly communicate the board and residents’ expectations and demands.

3 – What is the board of directors?

As mentioned above, the board is the governing body of an HOA. Every board needs to have at least 3 members: the president, the secretary, and the treasurer. 

They are elected from among the community residents by the members of the HOA. The time they hold office may vary but usually, it’s for 1 to 2 years. 

Having a proactive, thoughtful, and engaged board of directors can make a big difference in how a community is run and the level of resident satisfaction. It’s their job to act in the interest of the homeowners. They can mediate any disagreements between residents. They are also in charge of upholding the covenants, conditions, and restrictions (CC&Rs) and by-laws, as well as managing HOA maintenance and fees.

4 – What are the committees inside an HOA? 

It isn’t necessary to have committees but they are very common, especially in larger HOAs. They form the task force of any association. They can be created for a specific project or purpose. Or, they can take a more permanent shape when they are in charge of the HOA’s governing documents. When this happens they are called “Standing Committees”. Some examples would be the architectural review committee, landscaping, and budget committees.

Committees are created by the board and they hold the responsibility for what the committee does. They are formed by residents and as such are very diverse, with different backgrounds, education, time availability, schedule, etc.

5 – So what is the purpose of an HOA?

The purpose of an HOA is to provide and maintain a secure space where residents can coexist in harmony and enjoy community life as much as they can. This means that residents have to follow certain rules, including what modifications they are allowed to make to their homes. Due to the maintenance that the board and owners performed and because owners are screened, the values of homes in an HOA are more stable. So part of the purpose of an HOA is to keep house prices stable.

When becoming part of an association, residents face a trade-off. You might have to give up on some privacy and be held accountable for the HOA’s rules. But you gain more than you lose.

Wrapping Up The Purpose of an HOA

An HOA is a homeowners association, which is run by a board of directors. The board may be helped by a manager and committees. HOAs help to assure higher property values, and a secure and enjoyable neighborhood to live in.

To find out more about community associations, including statistics, what different documents are, role in the HOA, and myths read our ultimate guide!