A homeowners association (HOA) has several functions. It usually manages services that are offered to residents. Sometimes an association provides people with a way to maintain a set of personal values for the neighborhood. For example, in a neighborhood that is designed for retired people, or for people who like houses to look a certain way, a HOA might set rules about the way the outside of a home can be changed, or might limit activities that generate noise.

Many homeowners' associations manage their community's recreational facilities which are maintained for the exclusive use of it's members. Payment of an annual fee allows individual homeowners access to a wide variety of features such as a maintained swimming pool, a clubhouse, tennis courts or a golf course, etc.

Membership in a homeowners association is voluntary.  People who do not join the homeowners association are not given access to these added features.

Residents pay an annual association fee that is separate from the bank loan for their home.

HOAs are most often found in planned residential developments such as condominiums, single-family home areas, and apartment buildings.

If you are thinking about buying property that is served by a homeowners association, ask about its services, fees, and restrictions. The more you learn, the more likely that you will be fully satisfied.