HOAMs

HOAMs, or Homeowners' Associations, are private, non-profit organizations that govern a planned community or condominium. They are established by a developer and then typically turned over to the homeowners once a certain percentage of the units are sold. The primary purpose of a HOAM is to maintain and enhance the community's property values and quality of life. This is achieved through the enforcement of rules and regulations, often referred to as Covenants, Conditions, and Restrictions (CC&Rs).

HOAMs are funded through mandatory fees collected from homeowners, known as dues or assessments. These funds are used for common area maintenance, such as landscaping, pool upkeep, road repair, and the management of shared amenities. HOAMs also have a governing board, usually composed of volunteer homeowners, elected by the community members. This board is responsible for overseeing the association's finances, enforcing the CC&Rs, and making decisions regarding community improvements and management.

Membership in a HOAM is typically mandatory for all property owners within the designated community. Failure to comply with the rules or pay dues can result in penalties, fines, or even legal action, including foreclosure in some cases. While HOAMs can provide benefits like well-maintained common areas and a sense of community, they can also be a source of contention due to their rule-making authority and fee structures. Homeowners should carefully review the CC&Rs and governing documents before purchasing a property in a community with a HOAM.