What exactly is an HOA?

A Homeowners Association (HOA) is a private organization within a residential community responsible for:

maintaining and enhancing the quality of life for its residents
creating and enforcing community rules
managing common areas and shared amenities
collecting fees to support these activities

These organizations help protect property values by ensuring uniformity and orderly community standards, contributing to a stable and attractive neighborhood.

HOA membership is typically mandatory for all property owners within the community, and homeowners are required to pay regular dues, which are used for the maintenance of shared spaces, landscaping, snow removal, and other communal services.

An HOA is governed by an elected board of directors, who are residents themselves and have a vested interest in the community’s well-being. This board oversees the association’s activities, enforces rules, and resolves disputes between neighbors.

HOAs offer several benefits, such as maintaining property values, promoting a sense of community, providing convenient amenities, enhancing neighborhood safety, and facilitating conflict resolution.

HOAs operate under governing documents, such as articles of incorporation, bylaws, and CC&Rs (covenants, conditions, and restrictions), which outline the responsibilities of the association and the rights of the homeowners. While these rules are intended to foster a harmonious and well-maintained community, they may also limit homeowners’ choices in aspects like exterior design modifications.

Most HOAs are incorporated and subject to state laws that govern non-profit corporations. While state oversight varies, the goal of these associations remains consistent: to ensure the community thrives, retains its value, and offers a desirable living environment for all its members.

Frequently Asked Questions

Is my home part of an HOA?

If you're a renter, check with your landlord. If you're a property owner, you should have received HOA info (covenants, bylaws) from your real estate agent prior to executing a buy-sell agreement, and/or by the title company at closing. Still unsure? Contact us.

Don't trust any of these people? Check with your county clerk & recorder's office, or search for your property on Montana Cadastral - you can find the link on our Resources page.

How are HOA rules and regulations established?

When an HOA is created, the developer or builder establishes key governing documents, which include:

Declaration of Covenants, Conditions, and Restrictions (CC&Rs): This outlines the community's rules, property use restrictions, and the HOA's powers.
Bylaws: These detail the operational structure of the HOA, including how meetings are held, how the board is elected, and voting procedures.
Articles of Incorporation: These establish the HOA as a legal entity and describe its purpose and powers.

These documents are usually filed with the county clerk and recorders office.

Note: HOA rules must comply with local zoning ordinances and state laws governing homeowner associations. These laws can set limits on what an HOA can enforce and how it operates.

Can HOA rules and regulations be changed?

The HOA board, elected by members, plays a key role in updating rules. They may introduce new rules or amend existing ones to address evolving community needs or concerns.
Some HOAs involve residents in the rule-making process by holding meetings or votes on significant changes. This ensures that rules align with the interests and preferences of the majority. Once proposed, rules must typically go through a formal process for adoption, which often includes:

Notice: Informing members of the proposed rule change.
Review: Allowing time for feedback or objections.
Approval: The board or community members vote to approve the rule.

After approval, new rules are communicated to residents through newsletters, emails, or HOA portals. Enforcement is carried out per the HOA's governing documents. By adhering to this structured process, HOA rules and regulations are designed to reflect the community's needs while remaining fair, enforceable, and legally compliant.

Note: HOA rules must comply with local zoning ordinances and state laws governing homeowner associations. These laws can set limits on what an HOA can enforce and how it operates.

What is the role of the HOA board?

As elected representatives, board members are responsible for overseeing the homeowner association’s operations and ensuring compliance with governing documents.

Why do we need a property management company if we have a Board of Directors?

The HOA management company assists the board by handling the day-to-day operations of the community, allowing board members to focus on decision-making and governance. Key services include:

Administrative Support: Managing communication with homeowners, preparing meeting agendas, and maintaining records such as governing documents and financial reports.
Financial Management: Collecting dues, creating budgets, managing accounts, and ensuring timely payments for services or maintenance.
Rule Enforcement: Helping enforce community rules by addressing violations, issuing notices, and mediating disputes.
Maintenance Coordination: Overseeing maintenance of common areas, contracting vendors, and ensuring repairs are completed efficiently.
Expert Guidance: Providing professional advice to the board on best practices and community management strategies.

By handling these operational tasks, the management company allows the board to focus on leadership and decision-making for the community’s long-term success.

What do HOA fees cover?

HOA fees typically cover the costs associated with maintaining and managing the community's shared spaces and services. Common expenses included in HOA fees are:

Maintenance of Common Areas: This includes landscaping, cleaning, repairs, and upkeep of parks, parking lots, clubhouses, and other shared amenities.
Insurance: Coverage for common areas and sometimes for the community’s infrastructure, protecting the HOA and residents from potential liabilities.
Utilities: In some cases, HOA fees cover water, sewer, trash removal, and sometimes electricity for common areas.
Reserve Fund: A portion of the fees is often set aside for future repairs or major projects, such as roof replacements or road repairs.
Management Services: Fees may also cover the cost of a professional HOA management company or staff that handles administrative duties, such as enforcing rules, collecting dues, and coordinating maintenance.
Security: If applicable, fees may contribute to security services, like gated access, security patrols, or surveillance systems.

The specific services covered can vary depending on the HOA and its community, so it’s important for homeowners to review the governing documents to understand exactly what is included in their fees.

I'm annoyed that my neighbor isn't maintaining their property, what can I do?

If you are part of an HOA, your bylaws most likely dictate the enforcement and consequences of not maintaining a property. In addition, if the property is within city limits, there are other actions you can take. See our blog post here for more.