What to know before buying a home in an HOA community
What to know before buying a home in an HOA community
Maddie McGay, USA TODAY NETWORKWed, March 4, 2026 at 4:09 PM UTC
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During your home search, you've likely seen listings that mention an "HOA" — or Home Owners Association. But besides the fact that it comes with a mandatory fee, most people don't know what it means to live in a place that requires you to join one. This includes planned communities, condominiums and cooperatives.
Homeowners in these common interest developments share ownership and maintenance responsibilities for common areas, such as roads, recreational facilities and structural elements.
"It really creates an opportunity for greater affordability and access to a higher level of living because you're sharing everything related to it," said Dawn Bauman, chief strategy officer for the Community Associations Institute. "It's co-ownership and sharing amenities."
A homeowners association, made up of an elected Board of Directors, oversees a common-interest development.
Rather than being maintained by the municipality, these developments are managed by governing bodies of elected volunteer residents known as homeowners associations, or HOAs. And homeowners are required to pay monthly dues to their HOA to help cover maintenance costs, operating expenses and reserve funds.
But what does owning a home within an HOA actually entail for its residents, and are they worth being a part of? Here's what to know about these types of communities, including the benefits and drawbacks, as well as things to consider before joining one.
How does an HOA work?
A homeowners association is made up of an elected Board of Directors, consisting of volunteer homeowners, that oversees the community's finances and organizes the upkeep of shared spaces.
The Board of Directors also establishes and enforces a set of community rules, as outlined in a document known as the Covenants, Conditions and Restrictions. These rules can focus on the outside appearance of your home, quiet hours, pet policies, parking regulations and more.
Bauman said that while there is a core framework of rules that most HOAs will have in common, each one can create its own set of rules based on the wants and needs of the community and its members.
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What are the benefits, and drawbacks, of being in an HOA?
HOAs tend to be well-maintained and aesthetically pleasing environments because of their set of standards, Bauman said, leading to higher property values. Residents also enjoy perks like pools, recreational facilities and green spaces without the hassle of upkeep; and can build a sense of community with their neighbors.
On the other end, having to follow a set of rules within a neighborhood can feel limiting for homeowners. Plus, the added cost of a mandatory monthly HOA fee may not be ideal.
Also, while there are several legal guidelines focused on the rights of homeowners and the operations of HOAs — including elections, meetings and fiduciary duties — there is typically no dedicated state agency that actively monitors their daily operations.
Ed Hannaman, president of the Common-Interest Homeowner's Coalition — which advocates for fair governance and the protection of homeowner rights — said this leaves room for potential mismanagement, abuse of power and excessive fines within the HOA.
"You can elect the board, but they have all the power," he said. "So they need to be governmental. They need to be transparent. Homeowners need to have full access to all the business records. They should see contracts for maintenance and repairs, and they should see who's getting the contract."
What to consider before buying in an HOA
Before buying a home in an HOA, do your due diligence to ensure it's the right decision.
Bauman said to research the financial model of the community association, and how much the homeowners are obligated to pay on a regular basis for their HOA dues. You should also check whether there are any special assessments coming up for a major project or repair, Bauman said, or whether the HOA has capital reserves to cover long-term maintenance.
You should also look at the community's Covenants, Codes and Restrictions to get an understanding of its standards and rules, and determine if they're right for you. Plus, Hannaman said to look into what the board's practices have been in terms of making things like financial records, meeting minutes and vendor contracts available to homeowners.
Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.
This article originally appeared on NorthJersey.com: What to know before you join a homeowners association
Source: “AOL Money”
