Issue link: https://www.cominghomemag.com/i/1544982
Homeowners' Association (HOA) The most popular type of association, an HOA is a non-profit organization that oversees the management of a residential community. An elected board of directors governs the HOA on behalf of all homeowners, and these volunteers are responsible for enforcing governing documents, handling finances, and maintaining common areas. While every community operates in its own way, homeowners are generally required to be HOA members, follow rules, and pay regular fees to cover shared operational expenses. Ultimately, HOAs exist to preserve property values, promote unity, and provide a high standard of living. Condominium Owners' Association (COA) A COA is very similar to an HOA, with one major difference: The community consists of condominiums. In an HOA, residents own their properties, and the association owns and maintains common areas. In a COA, residents own their units and a percentage of all shared property. The association doesn't own anything, but it ensures the assets that serve multiple units are maintained. Much like an HOA, a COA is governed by an elected board of volunteers. Members must pay fees to cover general maintenance and shared services. The amount each resident pays varies based on their percentage of ownership in the property. Property Owners' Association (POA) POAs are non-profit organizations with a flexible operating model. Some POAs have a board of directors and their own set of governing documents; others don't. Generally, POAs may not own common areas, don't have many regulations, aren't responsible for maintenance, and can't issue fines, unless clearly outlined in state law or governing documents. They may also encompass one or more HOAs, include a mix of property types, and extend membership to anyone who contributes to the area, not just owners. Some POAs are funded through donations, whereas others require members to pay a modest fee to support community efforts. Associations Decoded Unveiling what sets HOAs, COAs, and POAs apart. COMING HOME MAGAZINE 37