Homeowners associations are organizations (usually non-profit) that are created (usually by a real estate developer) for the purpose of operating a residential community. The developer has legal and financial responsibility within the HOA. When he’s sold a pre-determined quota of lots, he may transfer ownership of the HOA to the development’s homeowners. Most HOAs are incorporated and subject to state law.
HOAs can be a blessing or a curse, depending on your perspective as a homeowner. It’s not unheard of for HOA boards to overstep their authority, and if this happens, you need to be aware of your rights.
What Do HOAs Do?
When you buy into a development, you automatically become a member of the HOA. The HOA board’s main function is to…