Homeownership usually implies association with a community that takes care of the shared spaces and assists in maintaining standards. Two of the most common organizations that play a significant role in residential neighborhoods are homeowners’ associations and property owners’ associations (POAs).
This blog will discuss the main differences between HOAs and POAs regarding their purpose and structure and how they affect homeowners.
What is a Home Owner Association (HOA)?
Home Owner Association
A Homeowners’ Association (HOA) is a body that comes into being due to the need to manage and maintain common areas and amenities in residential communities. Familiar with planned communities, condominiums, and some neighborhood HOAs, commonly guided by rules and regulations. The homeowners join the HOA after purchasing property in a community and must remit fees regularly for everyday purposes.
An HOA usually governs residential communities, including single-family houses, condominiums, subdivisions, or gated communities. Membership in the HOA is obligatory for homeowners; they pay monthly fees that go towards the management and upkeep of shared spaces. Such costs may include amenities such as community garden/park maintenance services. Some HOAs may also include upgrades or repairs to private residences, such as roof repairs for condominiums.
HOAs are essential in creating and implementing rules, often with strict guidelines. Examples are limits on exterior paint color or rules about the frequency of grass cutting. Their goal is to establish and preserve standards for home appearances, creating a harmonized look throughout the community. Although HOAs generally encompass the areas outside homes, they are also concerned with helping to improve the community as a whole as one collective entity.
What is a Property Owners Association (POA)?
Property Owners Association
A POA is like an HOA but works on a larger scale, including homes and businesses. POAs are expected to be seen in bigger residential homes, resort communities, or regions with communal facilities. Like HOAs, the POA rules and regulations are instituted, with homeowners becoming members simply by purchasing a property. Standard area fees are used to maintain common areas, which consider the entire community.
Several aspects make a Property Owners Association (POA) different from a Homeowners Association (HOA). In contrast to an HOA, which usually covers a community of similar property types, a POA often includes single-family residences as well as businesses. The goals of a POA are clearly defined, focusing on the broader community education in matters concerning real estate or specific industries in the community.
POAs do not necessarily deal with issues such as mandating house colors; instead, their interests span improving neighborhood development projects based on local zoning regulations. However, HOAs may focus on the curb appeal and value of just homes, while a POA’s jurisdiction can include an entire city or even several cities. On the other hand, it might seek certain areas in a town like historic or waterfront communities.
Key Differences between HOA vs POA
Here are the key differences between HOA and POA:
1. Scope of Authority
- HOA: Deals with managing and maintaining common areas and facilities within a given residential community. Its jurisdiction usually extends only to such a specific neighborhood or development.
- POA: On a larger scope that encompasses the management of common areas and amenities, which may actually spread on different parts within one single residential development or even in a resort.
2. Membership Requirements
- HOA: If you live in the area community or neighborhood, membership is compulsory for every homeowner. When one buys a property, one becomes an automatic member of the HOA.
- POA: As in the case of HOAs, membership is automatic upon purchase. On the other hand, POAs may be much wider in the area and include different neighborhoods or developments.
3. Rules and Regulations
- HOA: Establishes and enforces rules and regulations tailored to the specific community it governs. These rules often cover aspects such as architectural guidelines, landscaping, and the use of common areas.
- POA: Sets rules and regulations for a broader community, potentially covering multiple neighborhoods or developments. While similar to HOAs, POA rules may have a wider scope due to the larger area they oversee.
4. The Scale of Amenities
- HOA: Manages amenities and common areas within the confines of a particular community, which may include parks, pools, or clubhouses.
- POA: Often oversees larger-scale amenities, such as golf courses, recreational facilities, or expansive common areas that serve multiple neighborhoods.
Distinguishing HOA vs POA with Citadel Property Management Corp.
HOAs and POAs
Choosing where you live involves understanding the difference between Homeowners’ Associations (HOAs) and Property Owners’ Associations (POAs).
Citadel Property Management Corp. is a diverse real estate firm that provides property management and real estate services throughout the New York metropolitan area as well as, and they specialize in real estate brokerage. So, whether you prefer a cozy community (HOA) or a more extensive setup (POA), we’re here to guide you.
Explore your perfect community with us. Visit Citadel Property Management Corp. to find your ideal home. Make the smart move – choose us for a beautiful living experience.
FAQ
1. Are the rules and regulations imposed by HOA vs POA the same?
HOAs and POAs have different rules. While both organizations establish codes of conduct for communal livelihoods, the detailed regulations may vary depending on how extensive a particular association is. Homeowners need to double-check the governing documents of their respective associations to have clarity.
2. Do homeowners have different authority and decision-making power levels in HOAs and POAs?
The level of authority and delegation of powers may differ. However, some homeowners in both HOAs and POAs could be eligible to vote on certain issues. On the other hand, the level of authority could vary according to an association’s by-laws and founding documents.
3. How do the financial responsibilities of homeowners differ in HOAs compared to POAs?
HOAs and POAs mean the owners are to pay regular fees covering any common expenses. The main difference stems from the size of amenities and common areas that each association manages. Therefore, homeowners must understand the actual amount of fees expected from them and how these are used in maintaining or developing their specific communities.
