The HOA management market is one of the flourishing markets in the USA, with a value of $38.6 billion in 2024. The HOA or Homeowner Association undertakes the responsibility of administering and functioning a residential community. Whether it is apartments, single-family houses, condos, or coops, HOA effectively manages all the communities and provides the best residential experience to the owners or renters.
HOA management plays a critical role in the residential community. This blog unveils the benefits that HOA management offers to the residents and the laws that govern HOA structures. But before that, let’s have a look at what HOA is and what its role is.
What is HOA, and What is its Role?
A homeowner association is a group of elected individuals that governs residential communities like condos, apartments, townhomes, and planned residential developments. The HOA enforces community guidelines, rules, and regulations, maintains common areas, and undertakes property management tasks. The HOA also collects the maintenance fees, prepares the community budget, and handles the homeowners’ queries and grievances.
HOA management is vital for the well-being of a community. The role of a HOA includes the following:
- Rule Enforcement: HOAs establish and enforce community guidelines known as Covenants, Conditions, and Restrictions (CC&Rs). These rules govern property use, exterior aesthetics, and neighborhood behavior to maintain the community’s values and order.
- Maintenance of Common Areas: HOAs maintain common areas such as pools, parks, landscaping, and clubhouses.
- Financial Management: The HOA manages the community’s budget, collects dues from homeowners, and uses the funds for maintenance, repairs, and other necessary expenses.
- Conflict Resolution: HOAs resolve disputes between residents. They listen to their queries and find the most reasonable solution for them.
- Safeguarding Property Value: By enforcing rules and maintaining the community’s appearance, HOAs aim to preserve or increase property values.
Advantages of an HOA
HOA management is vital for the management and enhancement of the value of a community. They undertake several functions and provide numerous benefits to the community. Some of them are:
1. HOA and Management Dynamics
The HOA undertakes the community’s management and maintenance tasks. They look for necessary repairs, leakages, renovations, and replacements. Besides, HOAs enforce rules that help maintain the community’s values and establish a friendly environment. Sometimes, HOAs also hire efficient property management firms like Citadel Property Management Corp. to delegate management tasks and focus on other important matters.
2. Shared Amenities
HOAs manage the community’s shared amenities, such as pools, parks, fitness centers, and clubhouses, to enhance the residents’ ownership experience.
3. Community Appearance
HOAs ensure that landscaping, exterior home maintenance, and public spaces are well-kept, promoting a clean and attractive environment for everyone.
4. Maintaining Harmony
HOAs look into disputes between neighbors and address issues such as noise, pets, or property boundaries, which helps maintain harmony within the community.
5. Consistency
By enforcing uniform standards and common guidelines for exterior home design and maintenance, HOAs ensure consistency throughout the neighborhood, contributing to a cohesive community look and feel.
New York HOA Laws and Regulations
New York City is home to many HOAs that effectively manage the residential community and ensure a friendly environment in the neighborhood. HOAs are generally governed by specific laws and regulations in New York City. Some of them are:
1. New York Business Corporation Law
New York Business Corporation Law governs the legal framework and compliances for the establishment and administration of corporations in the state. HOAs that form under this law must adhere to the regulations established by the law while managing the community’s day-to-day operations.
2. New York Condominium Act
New York Condominium Act oversees the maintenance, administration, operations, and establishment of a condominium. It states the rules and regulations governing the day-to-day functioning of a condo, the rights of the tenants or owners of a condo, and guidelines for the HOA functioning.
3. New York Not-for-Profit Corporation Act
Many HOAs are generally organized as not-for-profit corporations under New York’s Not-for-Profit Corporation Law. This law governs the creation, management, and dissolution of non-profit entities, outlining the roles and responsibilities of the board of directors, member rights, and financial management.
4. New York Cooperative Corporations Law
This law specifically governs cooperative housing corporations in New York, detailing the rights and responsibilities of cooperative shareholders and the management of cooperative buildings. It addresses issues such as the issuance of shares, proprietary leases, and the election of board members. The Cooperative Corporations Law ensures that co-ops operate in a manner that protects shareholders’ interests while maintaining the financial and physical health of the cooperative.
5. New York Real Property Actions and Proceedings Law (RPAPL)
The RPAPL governs legal proceedings related to real property in New York, including foreclosure, eviction, and other property-related disputes. HOAs must adhere to RPAPL provisions to deal with situations like unpaid assessments, initiating foreclosure actions, or resolving disputes between homeowners and the association. This law provides the legal framework for protecting property rights and resolving conflicts within an HOA setting.
Find the Best Residential Community managed by HOAs in New York
HOAs are an integral part of residential communities. They undertake the day-to-day functioning of the community, manage the common areas, and establish guidelines to promote a friendly and co-operative environment in the community. They prepare the annual or monthly budget of the community to allocate expenses for repairs, leakages, and management of shared amenities. They also undertake all the functions related to property management, such as renovations, paints, landscaping, and replacements.
HOAs provide the best and stress-free residential experiences to homeowners. To find an HOA-managed residential community that caters to your ownership needs, you can contact Citadel Property Management Corp.
Frequently Asked Questions
1. Does HOA impose fines on homeowners?
Yes, HOAs in New York can impose fines on homeowners who violate community rules. Theses fines and violations are generally outlined in the HOA rules and regulations documents.
2. What are CC&Rs?
CC&Rs (Covenants, Conditions, and Restrictions) are the rules governing a community that homeowners agree to follow when purchasing property within an HOA.
3. Does HOA have a right to change the rules?
Yes, the HOA has the right to change the community’s rules, but rule changes usually require a vote by homeowners or approval from the board, depending on the governing documents.
4. Are HOAs and COAs the same?
No, HOA and COA are two different structures that manage different residential communities.