Nov 03, 2020

    What is the Homeowners Association?

    "A homeowner's association (HOA) is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents. Those who purchase property within an HOA's jurisdiction automatically become members and are required to pay dues, known as HOA fees" (Chen, 2020).


    A lot of homeowners do not know what CC&Rs are. If you live in an HOA community or are planning to purchase a home in an HOA community, you should become familiar with CC&Rs. CC&R stands for Covenants, Conditions, and Restrictions. This document outlines the rules for people living in your neighborhood. These may include the outside color of your home, use of common areas, lawn upkeep among many others. If you violate the CC&Rs you may be subjected to fines, suspension, forced compliance, or even a lawsuit.

    You should be able to find a copy of the CC&Rs on your county assessor's official government website.

    How much do HOAs Cost?

    It varies. Some HOAs offer a variety of amenities and naturally, these come with higher fees. Some communities charge as little as $50 while others can be over $1,000 per month. One important thing to keep in mind is that these prices can go up every year. There typically is no cap on how much an HOA can raise its dues. The HOA is made up of a board of directors that oversee the budget for the community, if the current HOA dues do not cover the budget the homeowners' dues will increase. Some communities limit the amount they can raise HOA dues to a certain percentage or amount per year, you can check this in the CC&Rs for that community.


    Another thing to watch out for is assessments. In an HOA community owners may be charged extra fees to cover the costs of a community repair or improvement. These assessments may be limited to a certain amount per year in certain communities. Check the HOA CC&Rs for these specifications.

    To find more information about the owner's rights and responsibilities in an HOA you can visit: Overview of Homeowner/Condominium Associations

    Can I opt-out of my HOA?

    Unfortunately, you cannot simply "opt-out" of an HOA. Your best option may be to sell the property and move. Make sure to review closely all of the HOA dues and CC&Rs before purchasing any property this can avoid a major headache down the road.


    HOA's aim to maintain the overall value of the homes in its community. One way to do this is by uniformity across homes in the neighborhood. Some of the HOA rules include the outside color of your home, limits to the personal items displayed in the front yard, front yard upkeep, etc. When these standards are upheld it protects the value of the homes in that neighborhood.


    HOA's can offer many amenities that would otherwise be unavailable to non-HOA communities. These amenities may include landscaping, playgrounds, gyms, clubhouses, basketball courts, tennis courts. The maintenance of these common areas is the responsibility of the HOA.

    CONSFees, dues, and assessments. 

    Making those monthly payments is never fun. 

    Restrictions that may limit your full enjoyment of your property.

    You may not be allowed to have a shed in your yard or a pet in your home. Some HOA restrictions can feel severely limiting to certain homeowners.

    Extra Resources:

    Unit Owner Responsibility Under an HOA

    Utah HOA Laws


    Chen, J. (2020, July 4). Homeowner Association (HOA). Investopedia.