HOA Basics: Key Benefits & Facts

  • Protects property values — Rules maintain neighborhood standards
  • Shared amenities — Pools, parks, landscaping (often included in dues)
  • Reserve fund — Covers big repairs (roof, roads) so you’re not hit with surprise bills
  • Enforced rules — Prevents neighbors from lowering curb appeal
  • Insurance savings — Master policy often covers exterior (you insure interior)

FAQ: Homeowners Associations

Are HOA fees tax deductible?
No — unless you use part of your home for business (consult tax pro).

Can the HOA foreclose on my home?
Yes — for unpaid dues (rare, but possible after 6–12 months delinquency).

Do I have to join the HOA?
Yes — automatic when you buy in the community. No opt-out.

Can I change HOA rules?
Yes — with board approval or majority owner vote (hard but possible).

How to Review an HOA Before Buying (5 Steps)

  1. Get the docs early → CC&Rs, bylaws, budget, reserve study, meeting minutes
  2. Check finances → Look for healthy reserves (70%+ funded ideal)
  3. Read the rules → Pets? Rentals? Parking? Trucks? Know before you offer
  4. Attend a meeting → See how the board runs (or ask for past minutes)
  5. Ask your agent → “Any pending assessments or lawsuits?”

Pro Tip: Red flag = low reserves + high dues + recent special assessments.