HOA is an acronym for Home Owner's Association. It is a third-party, nonprofit organization of a specified home owner's subdivision, condominium or housing development. HOAs are governed by state laws that regulate the activities of nonprofit organizations.
An HOA's main purpose is to establish and enforce a common agreement on how home owners are to preserve, maintain and enhance their property. The association can impose fines on home owners who do not comply to the regulations.
There are often fees associated with owning property that is part of an HOA. These fees can be yearly or monthly, depending on the HOA. The fees collected are used for maintaining the common property of the building or neighborhood.