Wikipedia source excerpts
ial subdivision. The developer may transfer control of an HOA after selling a predetermined number of lots. These legal structures, while most common in residential developments, can also be found in commercial, industrial and mixed-use developments, in which context they are referred to as property owners' associations (POAs) or common interest developments (CIDs) instead of HOAs.
HOAs are most frequently found in the United States, Japan, Canada, Australia, and the Philippines, and to some extent in other countries, such as New Zealand, Israel, Mauritius, South Africa, most of the countries of the European Union, such as Denmark, France, Germany, Italy, Spain, the Netherlands, Ireland, Austria, Poland, Hungary, Bulgaria, Greece, Sweden, Belgium, Croatia, the Czech Republic, Latvia, Lithuania, Cyprus, Luxembourg, Estonia, Slovakia and Slovenia, and some of the Latin American countries, such as Chile, Argentina, Brazil and Mexico.
Elsewhere, one also finds concepts such as strata title (originating in Australia but since emulated by several other countries, including the Canadian provinces of Alberta and British Columbia), which are similar in principle to homeowner associations but have a different legal heritage.
In most cases, a person who wants to buy a residence within the area of an HOA must become a member, and therefore must obey the governing documents including articles of incorporation, covenants, conditions and restrictions (CC&Rs) and by-laws—which may limit the owner's choices, for example, exterior design modifications (e.g., paint colors). HOAs are especially active in urban planning, zoning, and land use—decisions that affect the pace of growth, the quality of life, the level of taxation, and the value of land in the community.
Most HOAs are incorporated, and are subject to local laws that govern non-profit corporations and HOAs. Regulatory oversight of HOAs varies from jurisdiction to jurisdiction; some jurisdictions, such as Florida and California, have a large body of HOA law. However other jurisdictions, for example Massachusetts, have limited HOA law. HOAs are commonly found in residential developments since the passage of the Davis–Stirling Common Interest Development Act in 1985. In Canada, HOAs are subject to stringent provincial regulations and are thus quite rare compared to the United States. However in recent decades, HOAs have infrequently been created in new subdivision developments in Alberta and Ontario.
The fastest-growing form of housing in the United States today are common-interest developments (CIDs), a category that includes planned unit developments of single-family homes, condominiums, and housing cooperatives. Since 1964, HOAs have become increasingly common in the United States. They have also been common in Japan, Canada and Australia since later previous years. The Community Associations Institute trade association estimated that in 2010, HOAs governed 24.8 million American homes and 62 million residents.
The covenants, conditions, and restrictions (CC&Rs) of the subdivision. These are likely the most important documents affecting the subdivision and are usually created when the subdivision is initially formed, and as such are often recorded in the official property records of the county or other jurisdiction where the subdivision is located. Commonly the CC&Rs specify what types of structures can be placed on a lot (e.g. an upscale community may prohibit mobile homes or travel trailers and require minimum sizes on dwellings, along with offsets from the property line where building is prohibited) and other property restrictions (e.g. no animals except for traditional household pets, no operation of commercial business).
The HOA's articles of incorporation and bylaws
In some cases, the documents may include board-enacted rules as authorized (expressly or implicitly) by the CC&Rs.
Generally, CC&Rs are enforceable as legal documents. However, there are instances where a CC&R is rendered illegal by later enacted state or federal law and therefore is no longer enforceable. For example, a developer-drafted covenant giving the developer sole rights to amend the CC&Rs was declared unenforceable as a matter of public policy in at least one state, where the developer attempted to amend years after he had sold all the property. That state's legislature later codified that public policy.
A homeowner association (or homeowners' association [HOA], sometimes referred to as a property owners' association [POA], common interest development [CID], or homeowner community) is a private, legally-incorporated organization that governs a housing community, collects dues, and sets rules for its residents. They are formed either ipso jure (such as in a building with multiple owner-occupancies), or by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. The developer may transfer control of an HOA after selling a predetermined number of lots. These legal structures, while most common in residential developments, can also be found in commercial, industrial and mixed-use developments, in which context they are referred to as property owners' associations (POAs) or common interest developments (CIDs) instead of HOAs.
HOAs are most frequently found in the United States, Japan, Canada, Australia, and the Philippines, and to some extent in other countries, such as New Zealand, Israel, Mauritius, South Africa, most of the countries of the European Union, such as Denmark, France, Germany, Italy, Spain, the Netherlands, Ireland, Austria, Poland, Hungary, Bulgaria, Greece, Sweden, Belgium, Croatia, the Czech Republic, Latvia, Lithuania, Cyprus, Luxembourg, Estonia, Slovakia and Slovenia, and some of the Latin American countries, such as Chile, Argentina, Brazil and Mexico.
Elsewhere, one also finds concepts such as strata title (originating in Australia but since emulated by several other countries, including the Canadian provinces of Alberta and British Columbia), which are similar in principle to homeowner associations but have a different legal heritage.
In most cases, a person who wants to buy a residence within the area of an HOA must become a member, and therefore must obey the governing documents including articles of incorporation, covenants, conditions and restrictions (CC&Rs) and by-laws—which may limit the owner's choices, for example, exterior design modifications (e.g., paint colors). HOAs are especially active in urban planning, zoning, and land use—decisions that affect the pace of growth, the quality of life, the level of taxation, and the value of land in the community.
Most HOAs are incorporated, and are subject to local laws that govern non-profit corporations and HOAs. Regulatory oversight of HOAs varies from jurisdiction to jurisdiction; some jurisdictions, such as Florida and California, have a large body of HOA law. However other jurisdictions, for example Massachusetts, have limited HOA law. HOAs are commonly found in residential developments since the passage of the Davis–Stirling Common Interest Development Act in 1985. In Canada, HOAs are subject to stringent provincial regulations and are thus quite rare compared to the United States. However in recent decades, HOAs have infrequently been created in new subdivision developments in Alberta and Ontario.
The fastest-growing form of housing in the United States today are common-interest developments (CIDs), a category that includes planned unit developments of single-family homes, condominiums, and housing cooperatives. Since 1964, HOAs have become increasingly common in the United States. They have also been common in Japan, Canada and Australia since later previous years. The Community Associations Institute trade association estimated that in 2010, HOAs governed 24.8 million American homes and 62 million residents.