Purpose of a Homeowners Association (HOA)
Above all else, the main goal of an HOA is to preserve property values. Nobody wants the value of one of their largest investments to stagnate or decline because neighbors do not take care of their property or the community property is not properly maintained. Another important goal of an HOA is to make the neighborhood an enjoyable, attractive, and safe place to live, all of which contribute to the main goal of the HOA, which is to preserve property values.
Benefits of an HOA
Maintains a common standard for maintenance and improvements.
Provides common amenities through shared ownership such as a swimming pool and playgrounds that are often impractical or impossible to own individually.
Provides reduced costs for certain household amenities by contracting in bulk. Such as telecom services (telephone, internet, cable TV) and landscaping.
Enforcement of acceptable use such as not allowing people to run retail businesses from their homes or renting out rooms.
Requiring homeowners to maintain their home sites by keeping the home in good repair, elimination of trash, properly caring for the landscape, etc. We have all seen how decrepit homes can reduce the beauty of a street or an entire neighborhood. Who wants to buy in a neighborhood having dumpy homes?
Maintains the common appearance as defined by the governing documents.
Enforces rules regarding types of vehicles permitted and proper parking.
Disadvantages of an HOA
Disadvantages to homeowners may include the financial burden of association fees, punitive fines, and costs of maintaining appearance standards; restrictions on property use and personal autonomy and the potential for mismanagement by the board, including the possibility of arbitrary or heavy-handed enforcement of rules.