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There used to be a time when you went to buy a house and you could do whatever you wanted with the house. However, a rising trend is to form a home owners association amongst the neighbors to ensure that there is a standard of living amongst the houses on the street. With this recent trend in home owner associations popping it brings up the question of “what exactly is a home owners association?”.
A home owners association is a group of individuals who are nominated and work for the better good of the neighborhood. They meet through monthly meetings to discuss the status of the neighborhood and work on existing issues.
Before a home owners association is put into place, the group of individuals will usually meet to discuss and make up a bylaws systems. The bylaws are rules that are made up and every person that lives in a house under the home owner association must agree to abide by these rules. These rules are usually put into place to preserve the existing neighborhood and keep the housing prices higher.
Occasionally home owner associations will collect what are considered HOA fees. These are fees that every home owner must pay every month. The money goes to the upkeep and maintenance of areas that surround the neighborhood. These items can include playgrounds, ponds, pools, hot tubs or any item that is used for the group of individuals. Should these fees not be paid by a home owner the HOA has a legal right to foreclose on the house within their neighborhood.
Home owner associations are a growing trend in a number of areas. By familiarizing yourself with the information about what home owner associations are you will be able to understand why they are put into place.
