F.A.Q.'s
Neighborhood Associations (NA) are:
Membership is entirely voluntary.
Any resident of a neighborhood can join, including tenants.
There is no common “ownership” or common interest, and therefore no requirement to pay maintenance fees. No property restrictions.
The Association can be dissolved at any time, depending upon the level of interest in membership.
The emphasis is on cooperative relationships, civic engagement, and social interaction among neighbors.
Homeowners Associations (HOA) are:
Membership is mandatory and includes all property owners and is normally defined in the deed. Non-owners who are residents (including tenants) cannot be members of the HOA.
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Membership is essentially perpetual and attaches to the lot/deed, not the person(s) who own that lot.
Each member is required to pay annual and special assessments defined by a Board of Directors.
The Association dictates and has the authority to enforce various rules, that are usually defined in the deed, through an elected Board of Directors, that affect (restrict) the use of your private property, with an emphasis on maintaining a certain level of attractiveness (subject to interpretation),and prevention of common nuisances.
There is common “ownership” or common interest. There are easements and an obligation of owners to maintain all common areas. This common interest creates legal and financial liabilities for each member.
A supermajority of lot owners must vote to approve terminating the association. Sometimes the lot owners must approve substantial increases in assessments.
There is a need to be incorporated
How are NA’s and HOA’s similar?
Both can be a source of community leadership and community outreach. Even though HOAs are a formal legal entity it can also take on the role of an NA.
Both depend on a board of voluntary directors and there are limits to the kinds of activities and programs each can sponsor. Both are a great way to keep residents informed of community events, initiatives, proposed policies and regulations, and more. Both can also be a tremendous structure to rally the troops when an impact situation may arise.
Both are an opportunity for economic gain through competitive vendor pricing. When you have a NA orHOA with 10 to 100 homes, you can leverage the purchasing power of the residents. For example, it is possible to negotiate a discount for lawn care services or snow plowing or many other goods and services