Why do you need a homeowners association?

Common Interest Communities, including HOAs, condominiums and co-ops, are a form of real estate ownership. This real estate ownership scheme is dictated by the land-use developer, who files the covenants, conditions, restrictions and reservations with the local land-use office.

Typically, the association owns key parts of the property -- such as exteriors, or owns amenities, such as the Golf course, pool, clubhouse, community parks or roadways. Association ownership is divided among all owners based on allocated interest.

The association's responsibility is to protect, maintain and preserve real estate values. Operationally, it is generally incorporated and must function as a business. This means financial reports, board meeting minutes, notices to shareholder/owners and so forth.

If you derive no benefit from common interest community real estate ownership, you are best advised to purchase a single family home.