When buying a home in California, especially in areas like Los Angeles, chances are you’ll encounter a homeowners association (HOA). Understanding how HOAs work is critical for protecting your rights and investment. Here’s what every homebuyer and property owner should know:
What Is an HOA?
A homeowners association (HOA) is a governing body formed to oversee a residential community. It is typically established by the developer of a housing project and governed by documents like bylaws and CC&Rs (Covenants, Conditions & Restrictions).
HOAs are commonly found in:
- Condominium buildings
- Townhome developments
- Gated communities
- Master-planned neighborhoods
Their core function is to manage common areas and enforce community rules designed to preserve the neighborhood’s quality, safety, and appearance.
Purpose and Role of an HOA in Real Estate
The primary mission of an HOA is to:
- Maintain shared spaces and amenities (pools, landscaping, gyms, etc.)
- Enforce community standards and architectural guidelines
- Handle disputes between neighbors
This ensures the neighborhood retains its appeal, which can support or increase property values. For homeowners, an HOA can offer consistency, predictability, and access to amenities not otherwise affordable individually.
How HOAs Operate: Governance, Management & Structure
An HOA is typically governed by:
- A board of directors made up of elected homeowners
- A set of bylaws and CC&Rs that outline the HOA’s authority and responsibilities
- Sometimes, a professional management company handles daily operations
The board makes key decisions about budgeting, rule enforcement, and maintenance contracts. Committees may assist with specific tasks like landscaping or architecture reviews.
Decisions—like raising fees or amending rules—usually require a vote by the board or community members.
HOA Fees Explained: What Homeowners Pay For
HOA members pay monthly or annual dues to fund the community’s upkeep. In California, these fees typically range from $200 to $600 per month but can vary widely based on location and amenities.
Common expenses covered include:
- Landscaping and maintenance of shared spaces
- Exterior building repairs (in condos)
- Community security and surveillance
- Trash collection and insurance for common areas
Fee increases must usually be approved by the board and communicated in advance. Non-payment can result in penalties—or even a lien on your property.
Common HOA Rules and Regulations
HOAs enforce a wide array of rules. Common restrictions include:
- Exterior paint colors and architectural changes
- Pet ownership and breed limits
- Noise ordinances and quiet hours
- Short-term rental bans or restrictions
These rules are detailed in the CC&Rs and can vary significantly between communities. Before buying, it’s crucial to review these documents carefully. Violating HOA rules can lead to fines or legal action.
Pros and Cons of Living in an HOA Community
Pros:
- Neighborhoods are often better maintained
- Access to shared amenities (pools, fitness centers, parks)
- Consistent property values due to enforced standards
Cons:
- Mandatory monthly fees
- Restrictions on property use
- Potential for conflicts with board or neighbors over rules
In competitive markets like Los Angeles, HOAs can make a property more appealing—or less attractive—depending on the buyer’s preferences.
How HOAs Affect Property Value and Marketability
Well-managed HOAs generally help maintain or increase property values by ensuring community upkeep and cohesion.
However, if the HOA is mismanaged—through poor communication, excessive rules, or deferred maintenance—it can hurt property values. Buyers and sellers should:
- Review HOA budgets and meeting minutes
- Understand pending fee increases or special assessments
- Consult with a real estate attorney during the transaction process
Legal Considerations: Homeowner Rights and HOA Responsibilities
California HOAs are governed by the Davis-Stirling Common Interest Development Act. This law outlines the rights of homeowners and the duties of HOA boards.
HOAs must:
- Provide financial transparency
- Allow homeowner participation in meetings
- Enforce rules fairly and consistently
Legal issues can arise from:
- Selective enforcement of rules
- Discrimination or harassment claims
- Misuse of community funds
When to Consult a Real Estate Attorney About HOA Issues
You may need legal advice if you’re facing disputes over fines or rule enforcement, sudden or unexplained fee increases, or a lack of transparency and financial mismanagement within your HOA.
Real estate attorneys can:
- Review HOA documents before purchase
- Represent you in disputes with the HOA board
- Ensure your rights are protected under California law
Learn more about how we help homeowners navigate HOA disputes in Los Angeles.
When to Contact an Employment Law Attorney
From developing compliant policies to defending against claims, Stone & Sallus supports small businesses across California with experienced legal counsel. We help you stay proactive, compliant, and protected.
Need help navigating employment law? Contact our employment law attorneys today.
Know What You’re Agreeing To Before You Buy
Before buying a home governed by an HOA, make sure you understand its structure, fees, rules, and enforcement powers. Don’t assume all HOAs operate the same way—read the fine print. Being informed now can save you time, stress, and money later.
Considering a property governed by an HOA? Have questions about your rights or obligations as a homeowner? Contact the experienced real estate attorneys at Stone & Sallus. We provide strategic legal counsel to help you protect your investment, resolve disputes, and make informed decisions about your real estate transactions.
