U.S. Mortgage Index

Homeowners association

Also called HOA

Definition

A homeowners association is an organization that manages shared property and community rules for a group of homes. HOA is the acronym. It is not the same concept as the dues it charges.

In plain English

Some neighborhoods and condominiums are organized through an association. The association can set rules, maintain common areas, and bill owners. HOA dues are the fees. The association is the body that charges them. Both matter in a purchase, but they are not interchangeable labels.

Technical definition

The CFPB consumer glossary describes a homeowners association as the organization that governs a community. HOA is the acronym for that organization, not a different concept.

Why it matters

Listings, appraisals, and underwriting all refer to whether a property is subject to an association, not only to the size of a bill.

Sources reviewed

Important note

HOA is the usual acronym for a homeowners association, not a different organization.