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GLOSSARY — REAL ESTATE TERMS

Homeowners Association (HOA)

A homeowners association (HOA) is an organization that manages and enforces rules, shared amenities, and common-area maintenance for a condominium, planned development, or gated community, funded by mandatory member dues.

What an HOA manages

An HOA maintains shared spaces and amenities -- landscaping, pools, roofs on attached properties, and common structures -- and enforces community rules through a set of governing documents known as CC&Rs (Covenants, Conditions & Restrictions). California HOAs operate under the Davis-Stirling Common Interest Development Act.

What to review before buying

Buyers should review the CC&Rs, current HOA budget, reserve fund status, and any pending special assessments before closing. An HOA with a poorly funded reserve account can mean a large special assessment down the road, which is a material financial consideration separate from the home's purchase price.

Typical dues in Southern California

HOA dues for a condo in Los Angeles or Orange County commonly run $250 to $600 per month depending on amenities, while planned developments with fewer shared amenities often run lower -- reviewing 2 to 3 years of HOA meeting minutes can reveal pending special assessments before they become a surprise.

WHAT TO REVIEW BEFORE BUYING INTO AN HOA
  • Request 2–3 years of HOA meeting minutes before closing
  • Ask about the reserve fund balance and any pending special assessments
  • Read the CC&Rs for restrictions that could affect how you use the property
  • Confirm current dues and any scheduled increases in writing
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Are HOA dues negotiable?
No -- dues are set by the association's budget and apply uniformly to all members, though the amount can change over time as the HOA's budget and reserve needs evolve.
What happens if I don't pay HOA dues?
HOAs can place liens on a property for unpaid dues, and in some cases pursue foreclosure, so delinquency is a serious financial and legal risk, not just a late fee situation.
Do all condos have an HOA?
Nearly all condominiums and most planned developments in California have an HOA, since shared structures and common areas typically require some form of collective management and funding.