What is the difference between an HOA and a homeowners association?
The difference between an HOA (Homeowners Association) and a homeowners association is that an HOA is a legal entity and a homeowners association is not. An HOA is a non-profit legal entity created to manage the common areas of a development like roads, sidewalks, and recreation areas. They also provide advice to homeowners on upkeep and improvements of their homes. By becoming a member of the HOA, homeowners agree to abide by rules and regulations that are established by the HOA board. A homeowners association, on the other hand, is not a legal entity. It is established as an informal organization between homeowners to promote social interaction and communication. It is typically voluntary and lacks the power to enforce rules and regulations like an HOA. It is strictly a platform for homeowners to communicate and share ideas with one another in the interest of their community. In the state of Washington, both HOAs and homeowners associations must register with the state. This registration allows the state to keep track of all entities within the state and to provide oversight when necessary. The registration also allows homeowners within the state to understand the difference between an HOA and a homeowners association.
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