Across the US, HOAs can be a source of both comfort and controversy for homeowners. For many residents, an HOA helps maintain property values and enforces community standards. For others, it can feel restrictive, costly, or overbearing.
According to the Foundation for Community Association Research, more than 74 million Americans live in a community governed by an HOA or condo board. Yet, many homeowners remain unclear about what HOAs can and cannot do, how much they cost, and whether they're even necessary.
Welcome to HOA: 101, where we reveal the essential, need-to-know info about these organisations in a way that is easy to understand. Whether you're a first-time home buyer or considering a move into an HOA-managed property, this expert-led guide will help answer your most pressing HOA questions.
What is an HOA?
HOA stands for Homeowners Association, a private organization in a planned community or condominium that makes and enforces rules for the properties within its jurisdiction.
If you purchase a home in an area with an HOA, you're typically required to become a member and pay regular fees.
HOAs are also legal – they operate under state and local laws, with authority outlined in governing documents like Covenants, Conditions & Restrictions (CC&Rs). These documents spell out the community’s rules and the HOA’s powers.
Legalities
Are HOAs mandatory?
Typically, if you buy a house in a community governed by an HOA, you are automatically enrolled and must comply with the association's rules and pay its fees.
This obligation is legally binding and outlined in the property deed or title documents, meaning you cannot opt out once you own the property.
Whether an HOA is 'worth it' depends largely on your lifestyle, personality, and expectations for community living.
Andrew Fortune, a realtor and brokerage owner at Great Colorado Homes, advises, ‘HOAs can add value and stability to a neighborhood. According to the Community Associations Institute (CAI), well-run HOAs help boost home values by enforcing rules that prevent neglect, standardize appearances, and ensure upkeep.
'They also provide amenities and shared resources that might otherwise be costly or unavailable, such as swimming pools, fitness centers, community landscaping, and private roads.’
Ultimately, the value of an HOA depends on the association’s financial health, governance, and transparency. A poorly managed HOA with low reserves and constant infighting can be more of a burden than a benefit.
Can your HOA evict you?
HOAs can’t directly evict you, but they can place liens on your property for unpaid fees or fines, and in extreme cases, initiate foreclosure proceedings.
This process varies by state and is typically a last resort.
Can HOAs sell your house?
Similar to evicting, your HOA can’t just decide to sell your house on a whim.
However, under certain circumstances, they may initiate legal proceedings that can ultimately result in a forced sale of your home, usually through a foreclosure process, which we detail in our home-buying jargon buster. While this is relatively rare, it is legal in many states and can happen.
Realtor Andrew explains, ‘The most common reason an HOA could force the sale of your home is nonpayment of assessments or fines.
‘If you fall significantly behind on your HOA fines, the association may place a lien on your property. This is a legal claim that gives them the right to collect what’s owed if the property is sold.’
In some states, if the debt is not resolved, the HOA can move to foreclose on the lien. This process can eventually lead to a forced sale of your home.
Costs
What are typical HOA fees?
Typical HOA fees in the United States vary based on location, property type, and the amenities offered by the community.
According to data from the U.S. Census Bureau's American Housing Survey, the average monthly HOA fee was approximately $243 in 2023, reflecting a 42% increase from $170 in 2019.
Do HOA fees increase?
Yes, a lot of HOAs have the right to raise fees annually or as needed for repairs, inflation, or increased service costs.
Homeowners are typically given notice and, in some cases, the opportunity to vote on major increases.
Do HOA fees include insurance?
Usually, HOA fees include insurance for shared structures and common areas, such as a clubhouse or exterior walls in a condo complex.
However, they do not cover individual homeowners' property or liability insurance, which you’ll still need to purchase separately.
Are HOA fees tax deductible?
Generally speaking, HOA fees are not tax-deductible for personal residences.
However, if you rent out your property, you may be able to deduct fees as a business expense. Always consult a tax specialist for specifics.
Are HOAs tax exempt?
Many HOAs qualify as non-profit corporations, but that doesn’t automatically make them tax-exempt.
They may be exempt from federal income tax under IRS Section 528, but they still pay taxes on non-exempt income sources.
Do HOAs cover water bills?
In some condos or townhouses, water may be included in HOA fees if there’s a shared meter.
However, in single-family homes, water bills are usually the homeowner’s responsibility unless stated otherwise in the contract.
Fines
Can your HOA fine you?
As real estate expert Matt Consolo says, ‘HOAs can impose fines for various infractions, as detailed in their governing documents – typically the Covenants, Conditions & Restrictions (CC&Rs) and the community rules and bylaws.'
But, importantly, there are important legal procedures and limitations they must follow.
The foundation of an HOA’s power to fine lies in the community’s governing documents. These documents outline what behaviors or actions are considered violations and what types of enforcement actions, ,cluding fines, are permitted.
'These rules are created to preserve the appearance, safety, and consistency of the neighborhood,' continues Matt. 'When a homeowner violates them, the HOA may issue a warning, followed by a monetary fine if the issue is not corrected within a specified timeframe.’
Common HOA fines include exterior modifications to your home without approval, landscaping violations, improper trash disposal, and parking in prohibited areas, such as fire lanes or guest spaces.
Complaints
What can HOAs do about noise complaints?
A lot of HOAs have rules about noise levels and “quiet hours.” If a resident is violating these either inside or in their backyard, the HOA may issue a warning, fine, or require mediation.
If it persists, the issue may be escalated to local law enforcement.
How to file an HOA complaint
First, review the rules and document the issue. Then, submit a written complaint to your HOA board or management company.
If unresolved, you can escalate to mediation, arbitration, or legal action, depending on your state’s laws.
FAQs
Can HOAs tow your car?
Yes, if you’re violating parking rules, like blocking lanes or parking in another resident’s spot, your HOA may have your vehicle towed. Remember to check posted signage and community rules.
Do HOA presidents get paid?
In most cases, HOA board members, including the president, are volunteers and do not receive a salary. These positions are typically filled by homeowners within the community who are elected by their neighbors to oversee and manage association affairs.
This volunteer structure helps keep costs low for the HOA and encourages a sense of communal responsibility and accountability.
Serving as HOA president can be time-consuming and complex, especially in larger communities with extensive amenities, frequent disputes, or active home renovation plans.
In these cases, the president may effectively function as a part-time manager, working alongside property management companies or legal advisors.
Is being part of an HOA good or bad?
‘It depends,’ continues real estate expert Matt. ‘Pros include community upkeep, access to amenities, like pools and gyms, and protection of property values.
Cons can include restrictive rules with home project permits, monthly fees, and potential conflicts with the board.'
If you value autonomy, you may find HOA regulations frustrating. But if you prefer structured environments with community standards, HOAs can be beneficial.
Which HOA am I in? How to find out
The first place to check is your property deed. If your home is part of an HOA, this will usually be recorded in the deed restrictions or legal description of the property.
These documents often reference the name of the association, any covenants or conditions tied to ownership, and whether membership is mandatory.
You can also check your closing packet – the bundle of documents you received when you bought your home. Look for:
- HOA Disclosure Documents (required in many states)
- The Declaration of Covenants, Conditions & Restrictions (CC&Rs)
- Any association bylaws or rules
- A welcome letter from the HOA or its management company
HOAs can feel like a double-edged sword: they protect property values and community standards, but sometimes at the expense of personal freedom.
By understanding your rights and responsibilities, you can decide whether HOA living is the right fit for your lifestyle. Always read the fine print, and when in doubt, ask questions before you buy.
Our home buying jargon buster makes it easy for you to purchase with informed confidence.
