Residents of a planned community pay monthly dues and follow a set of recorded rules. The organization that collects those dues and enforces the rules is the homeowners association, or HOA. It maintains common areas and preserves property values through covenants.

HOAs are governed by elected boards of homeowners. They adopt budgets, hire managers, and can levy fines or place liens for unpaid assessments. Documents such as CC&Rs, bylaws, and rules spell out what owners may and may not do with their properties.

Well-run associations keep neighborhoods consistent and amenities functional. Poorly run ones generate conflict, special assessments, and deferred maintenance. Buyers should review association financials, meeting minutes, and governing documents before purchasing. Living under an HOA means trading some individual freedom for collective standards.

The quality of the association often matters as much as the quality of the individual house.