POA Vs. HOA: What is the Difference?

You must have heard of two acronyms when considering the purchase of a property in a planned community: POA and HOA. Having complete knowledge about these terms will significantly help impact your experience as a homeowner. 

So, what is a POA vs. HOA? A property owners association (POA) aims to protect the underdeveloped areas of a community, whereas a homeowners association (HOA) is formed to manage and preserve a collection of homes. 

Learn about the intricacies of POA vs. HOA and help you decide which type of community best suits your lifestyle and preferences.

So, let's dive right in!

The Difference between HOA and POA

POA stands for Property Owners Association, while HOA stands for Homeowners Association. Both organizations manage and maintain common areas and enforce community rules. However, their scope, governance, and regulations can differ significantly.

The choice between these two types of associations ultimately depends on your preferences and priorities. While HOAs offer a structured and well-maintained environment, they can be restrictive and costly. On the other hand, POAs provide more flexibility and community involvement but may have fewer amenities and a less uniform appearance.

What is a POA Community?

A POA community encompasses a broader range of properties compared to an HOA. POAs often include residential properties and commercial areas, parks, and other amenities within the community. 

A POA's authority can extend beyond residential properties, governing a more diverse mix of property types and often covering larger geographical areas.

The Responsibilities of a POA 

POAs manage a community's well-being. From parks to pools, they maintain common areas for beauty and function. Enforcing rules protects property values and ensures a particular lifestyle. Budgets, funded by resident fees, cover essential services and projects. 

POAs can mediate disputes and host events, fostering a harmonious and engaging community. Remember, specific duties can vary; residents often have a say through elected boards. 

What is a Homeowners Association?

An HOA, on the other hand, is more narrowly focused on residential properties. An organization within a community or subdivision creates and regulates rules for the properties and residents. 

When you purchase a home in an HOA community, you automatically become a member. You are required to pay dues to support the upkeep and management of the neighborhood. HOAs are continuously in bloom, with over 53 percent of current homeowners in the U.S. living in HOAs. 

The Responsibilities of an HOA 

HOAs play a crucial role in shaping residential communities. Their primary focus is on managing these neighborhoods, ensuring they remain attractive and well-maintained through maintenance and beautification efforts. 

Unlike some optional community associations, HOA membership is mandatory for all homeowners. This comes with adhering to established rules and contributing regular fees that fund these initiatives. 

HOAs also have the authority to enforce these community standards, encompassing architectural guidelines, property maintenance expectations, and more. It's important to remember that the specifics of HOA responsibilities can vary. 

Homeowners have a say in how the HOA operates by electing boards that decide on their behalf.

What Sets Them Apart?

POAs and HOAs prevent a community's beauty, strength, and prosperous future. Still, some residents remain to be made aware of their operations and the reason they exist.

While both POAs and HOAs aim to maintain and enhance the quality of life within a community, their differences lie in their scope, governance, and membership.

1. Scope of Authority

HOA is limited to residential areas within a subdivision or development. While POA covers a broader range of properties. This includes residential, commercial, and recreational areas.

2. Membership

HOA's Membership is limited to homeowners within the community. POA membership can include homeowners, business owners, and other property owners within the community's jurisdiction.

3. Governance

HOA is governed by a board of homeowners elected by the community members. The focus is on residential concerns and property maintenance. POA is governed by a broader board that may include representatives from different property types, focusing on the overall development and management of the entire area.

4. Regulations and Enforcement

HOA enforces rules specifically related to residential living, such as lawn care, home exterior appearances, and noise levels. At the same time, POA enforces a broader set of rules that can affect residential and commercial properties.

Examples are zoning regulations, business operations, and the maintenance of public spaces.

Benefits of Living in a POA or HOA Community

POA and HOA communities offer various benefits for their residents' high quality of life. Have a look at the table below to choose between a community to call home:

How do HOA and POA fees Differ from Each Other?

Homeowners must pay HOA fees. It's for the upkeep of amenities and common areas, common area insurance, reserves, future projects, and other shared costs.

In contrast, residents often pay POA fees voluntarily. The membership is optional, while many POAS are funded by donations.

Wrapping Up

Moving into a planned community is always a good idea. While both organizations aim to enhance the quality of life and property values, their scope, governance, and membership can significantly impact your living experience. 

Whether you prefer the comprehensive management of a POA or the focused residential oversight of an HOA community management, knowing what each entails will enable you to make an informed decision that aligns with your lifestyle and preferences.

Do the due research on the specific rules, regulations, and fees before deciding. 

This will align your decision with your lifestyle and values. You'll ensure you're choosing the right community for you and your family.

Book a free consultation with our team. Learn how a professional community management company like Mosaic Services can serve your community well. 

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