What is the Difference Between an HOA and Condo

Are you thinking about buying in a planned community? Understanding the difference between a condo and HOA is crucial. It all boils down to what you actually own!

A Condominium Association manages a condominium complex's shared spaces and amenities, overseeing maintenance and enforcing rules for condo owners. 

A Homeowners Association (HOA) governs a residential community, ensuring property upkeep, enforcing community guidelines, and managing common areas for single-family homes

Continue reading to learn more on the topic.

Condo vs. HOA: Understanding the Ownership Difference

The primary difference between most condo and HOA associations is the property type they represent. Condominiums embody condos - apartments and HOAs back houses. Apart from being associations, they operate as democratic institutions and must go through elections. 

What is Condo Ownership?

You own your individual unit in a condo and share ownership of common areas. This includes lobbies, common hallways, sidewalks, roofs, elevators, swimming pools, and parking lots. It's a joint ownership of the building with your neighbors.

The condo association manages these shared spaces and sets fees based on unit size, as larger units benefit more from standard amenities.

What is HOA Ownership?

Here, you own your house and the land it sits on. The HOA, a separate entity, owns common areas like parks and roads.

HOA fees are typically split equally among all homeowners and may cover some utilities. You'll likely be responsible for maintaining your own yard and the exterior of your house.

Note: A study on community associations found roughly 27% of U.S. residents live in an HOA (2019-2020 data)

Is a Condo Association the Same as an HOA?

A condo association is similar to an HOA, but it specifically manages a condominium complex. Both govern community rules and maintenance, but condo associations focus on shared property within a condo building, while HOAs typically oversee single-family homes in a neighborhood.

Condo Association Vs. HOA — Digging Deeper!

When it comes to community living, the two main types of associations may sound similar, but there are some crucial differences between HOAs and condo associations that every homeowner should understand. We will walk you through the details of condominium association vs. homeowners association in more detail.

Ownership and Maintenance

The primary distinction between HOAs and condo associations is property ownership and maintenance responsibilities.

Condominiums: Condo owners own the interior of their individual units, but they share ownership of the building's common areas and amenities. The condo association takes care of maintaining and repairing these shared common elements, such as lobbies, elevators, roofs, and building exteriors. Condo owners have to pay monthly fees to cover the association's maintenance costs.

HOAs: In a homeowners association, each homeowner owns their individual lot and home, as well as any private yard space. The HOA owns and maintains the community's shared spaces, like parks, playgrounds, and roads. HOA members pay monthly fees to cover the upkeep of these common areas.

Fees and Assessments

Another key difference lies in how fees and assessments are determined and used.

Condo Fees: Condo fees are typically higher than HOA fees, as they cover a more comprehensive range of expenses. Condo fees go towards maintaining the building's common areas, utilities, insurance, and other shared costs. The amount each condo owner pays is usually based on the size of their unit

HOA Fees: HOA fees are generally lower than condo fees, as they only cover the maintenance of the community's shared spaces, not individual homes. HOA fees are usually divided equally among all homeowners, regardless of home size.

In addition to regular monthly fees, HOAs, and condo associations may levy special assessments to cover unexpected or large-scale repairs and improvements.

Governance and Rules

HOAs and condo associations are governed by an elected board of directors, but the specific rules and enforcement can differ.

Condo Associations: Condo associations tend to have stricter rules and enforcement, as they need to maintain a cohesive building environment. The association board can take legal action against condo owners who violate the community's bylaws.

HOAs: HOAs often have more relaxed rules, as homeowners have more property autonomy. While HOAs can still enforce specific guidelines, they may need more resources or legal authority to strictly enforce all laws.

Which is Right for You?

Consider your lifestyle. Buying a Condo offers a more hands-off approach to maintenance, while HOAs provide more freedom to personalize your space. HOAs often have stricter rules on exterior changes, while condos might have more regulations regarding noise or behavior due to close living quarters.

Whatever you choose, carefully review the association's rules and finances before buying. This will ensure a flawless transition into your new community!

Make a Smart Move into a CA or HOA Property

Want some tips on moving into an HOA or CA? Follow this additional information to understand your role as a property owner.

Choosing the Right Community

Choosing a well-run HOA or CA can boost your home's resale value. Research the association's finances and track record to ensure stability and rising property values.

Following the Rules

The association's governing documents outline consequences for rule breakers. This protects property values and prevents one homeowner from negatively impacting the neighborhood. Remember, state laws override HOA rules, but communities can have stricter rules if they comply with state regulations.

Understanding the Documents

Each association has a set of rules (CC&Rs or declarations) that govern the community. These can be detailed and may be updated by homeowners after developers transfer control. 

Unclear documents can lead to disputes, so reading them carefully before buying is crucial. Some communities might have restrictions on pets, parking, or other aspects that could be deal breakers for you.

Key Takeaway

The main differences between HOAs and condo associations are property ownership, maintenance responsibilities, fee structures, and governance. Understanding these distinctions is crucial for homebuyers to determine which type of community best fits their needs and lifestyle.

Whether you're considering a condo or a home in an HOA community, it's essential to carefully review the association's governing documents and budget to ensure it aligns with all your expectations and financial capabilities.

Learn more about the differences between an HOA and a condo association, including the costs and practices related to each. Contact Mosaic Services with your questions. 

Read On:

• Difference Between HOA and Property Management (Defined)

• Hiring a Condo Management Company - 6 Huge Benefits