Have you ever wondered why your neighbor set up their above ground pool in the front yard? Have you ever been unable to sleep because your neighbor’s farm animals bray and cluck through the night? Have you come home only to realize every house on your street is now a different color of the rainbow, some with neon trim?

If so, you might consider moving into a community that is governed by a Homeowners Association. Living in an HOA community ensures that properties will be well taken care of, residences will maintain uniformity and look aesthetically appealing, and the community will remain a pleasant and safe place in which to reside.

Residents of an HOA community tend to be surrounded by those who are like-minded in regard to what they expect to give and get from their community. In purchasing a home within an HOA community, residents are held to a certain set of standards and have agreed to uphold those standards. There are architectural requirements and landscaping uniformity. There may be regulations for use of the property, pets, noise, and décor. Neighborhoods that are governed by an HOA tend to be better maintained and safer, thus they have higher property values.

Community amenities can also increase property values. Recreational facilities such as pools, sport courts, parks, and playgrounds are just some of the amenities that could come with living in an HOA community. These amenities would be maintained by the HOA and are only for the exclusive use of those living in the community. Sometimes, utilities may even be provided to members of the associations. For example, sewer or garbage collection may be coordinated or paid for by the HOA. Cable and internet service could also be provided. Amenities and perks vary, but each association offers positive value to the homeowners and their property within the community.

HOAs can be wonderful organizations benefiting millions of US residents every day. If you desire to live in a place that governs its residents to ensure the neighborhood remains beautiful and peaceful, then an HOA community may be for you.

One of the most important decisions a potential homeowner will make is deciding what kind of home to buy. If a stand-alone single family home is not in your budget, or you prefer less responsibility, you’re likely going to find yourself facing the condo vs. townhouse decision. There are quite a few similarities and differences between the two, and each comes with a unique set of responsibilities, from both the owner and the Homeowner’s Association (HOA).

A condominium is a form of ownership of a unit. A condo is one unit in a larger building where you own your unit and typically pay a condo association fee for the building. The association pays for the maintenance and running of public areas which include hallways, parking lots, workout facilities and pool areas. While you do not own the public areas, you have full access to them. You can’t make any changes to these areas. Since you own the actual unit, however, you are free to paint and do some renovations as you wish inside the walls. Major renovations may require approval by the condo association.

Townhomes are different because you own both the outside structure, the land it sits on, and the inside unit. A townhome may have similar features to a freestanding home, such as a porch or garage, and usually has at least one shared wall with a neighbor. Townhome owners are sometimes responsible for the upkeep of the yard and landscaping that come with the property. Some townhome communities have public areas such as a pool or workout facilities that are shared by the community. Like a condo, those are public spaces maintained by the association, and you do not own them.

When you purchase a condo or townhouse, you are required to pay monthly fees into the Homeowner’s Association. The HOA handles the day-to-day maintenance of the shared spaces. In a condo, the HOA manages the building, its grounds, and its interior public spaces. In a townhouse community, the HOA manages common areas, which includes general grounds and, in some cases, roofs and exteriors of the structures. In addition to overseeing shared property maintenance, the HOA also establishes rules for all residents. These may include rules about renting out your home, noise, and what you can do with your land (for example, some townhome HOAs prohibit you from having a shed on your property, even though you own your yard).

Figuring out your own answer to the condo vs. townhouse debate comes down to measuring the differences between the two and determining which one is the best fit for your family, your budget, and your future plans. When evaluating the role of the HOA in each, keep in mind that your own personal influence can help make a community successful. Whether you serve on the board, are a vocal and well-informed HOA voter, or at the most basic level, read and consider your contracts carefully and understand all obligations.

Homeowners’ Associations (HOA’s) have been around a lot longer than you might think, although not necessarily in the same form that we see them in today. The first planned community was Levittown, a community built in Long Island in the late 1940’s. It was built primarily to offer low-interest homes to veterans. Though there was no formal association at Levittown, community rules and regulations were formed.

Similar planned communities continued to be developed as more and more people began to move out of city centers and into the suburbs. In some, the houses would look essentially the same; in others, several designs would be built. These communities attracted more affluent families and people who lived in these communities generally shared common ideas of how streetscapes should look. These developments were often more self-contained than traditional neighborhoods in that they maintained stricter standards regarding the appearance of the homes (both the structures and the landscaping). The general idea was that people who were looking for a certain aesthetic standard would be drawn to these communities.

Because of the popularity of these communities, real estate developers began increasing the density of homes on each parcel of land. Instead of large individual lots for each house, shared, common recreational spaces were built.  Clusters of homes would be built around a common green space. Starting in the 1960’s associations would be appointed to manage that common space. The common grounds association would essentially function as type of local government, managing things which were previously taken care of by municipal workers.

As more communities were developed, the association responsibilities began to shift according to the wants and needs of residents. Eventually, this morphed into what we know today as the modern Homeowners Association.

View the slides from an informative presentation from Ward and Smith, P.A. at the CAI-NC Annual Conference on October 19, 2012.
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