HOA, what does it mean?

kathystoltman Ventura County Home Buyer Tips Leave a Comment

What is a HOA, PUD and CC&R’s and why are they important for buyers to know before purchasing?HOA, what does it mean


HOA stands for homeowner association – a nonprofit organization that is funded by all the association’s members and overseen by an elected board of directors. In some states, HOAs must be registered with the department of real estate or another state regulatory agency.

Most of the country’s HOAs are run by volunteers from within the community, with the remainder run by management companies with board of directors made up of volunteer homeowners from the community.

The primary purpose of the HOA is to enforce the policies, procedures, regulations and restrictions agreed to by the members, thereby maintaining property values.

Financial support for the HOA comes from each homeowner in the form of monthly dues and occasional assessments. So, how does one become a member of an HOA? If you purchase a home in a managed community, you don’t have a choice about whether to become a member. It is required and automatic.

For this reason, when considering the purchase of a home governed by an HOA, reading the HOA documents before you agree to purchase is of critical importance.


This is a planned unit development. Generally, in a PUD development, homeowners own their home and the lot, but have a general interest in the common areas, like the green space, pool, tennis, common fences and entrance gate if applicable.  PUDs do have CC&R’s as governing documents.


CC&R’s stands for covenants, conditions and restrictions – the governing documents for the operation of the HOA. These are the rules that homeowners, tenants and guests are obligated to follow. Want to paint your house psychedelic pink? Check the CC&R’s first. From the number of pets allowed to parking restrictions, the CC&R’s are the laws of the community. Failure to abide by them could mean a hefty fine for the homeowner. Unpaid fines can lead to foreclosure proceedings and the loss of the home to the HOA.

If one is thinking of purchasing a property that is governed by CC&R’s, one should have a list of items that they need to inquire about. Some items one may want answers for are:

  • How many pets can one have
  • What repairs does the HOA cover, roof, all of exterior, landscaping?
  • Who pays for water, sewer, trash?
  • Is there earthquake insurance?
  • Parking?

If you don’t understand anything in the HOA documents, ask your real estate agent or attorney to explain it. Never close escrow until you’ve read every word on every sheet of paper in the HOA documents package.

For those looking to purchase a home in a community with a HOA, do any of the current homes for sale interest you?  I can help you with the purchase of your home.  Please know that I may not be the Listing Agent for many of these homes. If I am not, then, I would be representing you as your Exclusive Buyer’s Agent. If you already have an Exclusive Buyer’s Agent, please contact them.

As your committed buyer’s agent I will help you through the complicated maze of buying a home and will be there long after escrow closes to help you with any questions you may have.

If you are ready to buy a home , I am ready to assist you on the amazing journey! Every client experience is vastly different and I love the challenge that each one brings. The thrill of finding that perfect home for you is something that never gets old!

I do understand the importance of educating home buyers on the local Real Estate Market as well as those properties with HOA’s . This helps you make sound decisions. I work hard to ensure you understand what is happening at each and every stage. You can be rest assured that I will focus on your needs, negotiate a fair price on the home of your choice, and be there to hold your hand through closing and beyond!

More HOA information

I hope you found this HOA Post helpful!

This Real Estate article was written by Kathy Stoltman, a licensed CA Realtor servicing Ventura County. 

All rights reserved. Copyright protected

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