The purchase of such real estate as a townhome, condominium or house in a residential subdivision may require mandatory participation in a homeowner’s association (HOA) affiliated with that property. Apartment and commercial real estate renters are sometimes subject to HOA rules as well, though they don’t pay dues. These common terms will help you understand more about HOA’s.
Assessments – Assessments are dues that HOA member pay on a monthly or annual basis. These fees go towards administration and neighborhood upkeep.
Association manager – This person manages the company in terms of finances, inspections, supervising maintenance, authorizing payments, and other duties.
Board members – Board members are elected community members who work on a voluntary basis to set standards, procedures, budgets and policies for the association.
Bylaws – Bylaws cover such governing guidelines as meeting schedules and how board members are elected.
Covenants, Conditions, and Restrictions (CC&Rs) – These are rules put in place by a homeowner's association. CC&Rs can apply to such aspects as fence height, noise restriction and landscaping.
Injunction – If an HOA member violates a regulation, the HOA may file an injunction, or court request, to resolve the matter legally. An injunction can be as extreme as putting a lien on your property if you don’t pay your dues.
Reserve funds – This due money is put aside and then allocated towards expected expenses such as street repaving and condo reroofing.
Special assessment – This is a decision to perform extra community maintenance. HOA members will be charged a special fee for these projects.