What is a homeowners association?

A homeowners association (HOA) is a legal entity created by a community of homeowners in a residential area. Typically, an HOA is formed when developers plan and build a subdivision or condominium complex and outlines the rules and regulations in a governing document, such as a declaration of covenants, conditions and restrictions or a bylaws. In North Carolina, HOAs are established as nonprofit corporations subject to the North Carolina Nonprofit Corporation Act. The purpose of an HOA is to maintain and improve the property values of a neighborhood. HOAs typically have the authority to assess and levy fees for the benefit of the community. These fees help fund services such as landscaping, snow removal, trash collection, and other maintenance services. The fees also fund administrative costs, such as operation and enforcement of the HOA’s rules and regulations. HOAs also have the authority to enforce their governing documents. The board of directors or the homeowners can enforce the governing documents by delivering written notices to members who have violated the rules. The notice can include a warning, and if the violation is not remedied, the HOA can impose a fine or other disciplinary action. In North Carolina, homeowners are protected by the Homeowners Association Act, which grants homeowners the right to access HOA records and the right to vote on decisions affecting the association. It also requires HOAs to follow their governing documents when implementing and enforcing rules and regulations.

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What is a homeowners association?

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