HOMEOWNERS ASSOCIATION

A homeowner association is a private, legally-incorporated organization that governs a housing community, collects dues, and sets rules for its residents. They are formed either ipso jure, or by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. The developer may transfer control of an HOA after selling a predetermined number of lots. These legal structures, while most common in residential developments, can also be found in commercial, industrial and mixed-use developments, in which context they are referred to as property owners' associations (POAs) or common interest developments (CIDs) instead of HOAs.