What is an HOA, and what are the duties owed to the homeowners in an HOA?Wesley Stolsek

Here’s an overview of what an HOA (Homeowners Association) is, and the duties owed to homeowners within an HOA community, based on internal documentation and standard Arizona practices:

What is an HOA?

• A Homeowners Association (HOA) is an organization established to manage and regulate a residential community or condominium.

• It operates under a set of rules known as Covenants, Conditions, and Restrictions (CC&Rs), which all homeowners in the association agree to follow.

• The HOA is typically responsible for maintaining common areas, enforcing community rules, and managing finances related to shared amenities and services.

Duties Owed by an HOA to Homeowners

• Disclosure & Transparency: The HOA (or the seller, when selling a property in an HOA) must disclose critical documents and information to buyers within certain timeframes. This includes:

  • Bylaws and rules of the association

  • Declaration of CC&Rs

  • Details about fees, assessments, and any unpaid balances

  • Insurance coverage information

  • Financial statements, budgets, and reserve studies

  • Notices of violations, disputes, or litigation involving the HOA

• Fee Management: HOAs collect dues/assessments from homeowners to fund maintenance of common areas, community amenities, and association operations.

  • They must provide clear statements of amounts owed and payment frequency.

  • Special assessments (extra charges for major repairs or projects) must be disclosed.

• Maintenance of Common Areas: HOAs are responsible for the upkeep of shared spaces such as parks, pools, landscaping, clubhouses, and roadways (if privately maintained).

• Enforcement of Rules: The HOA enforces community rules as outlined in the CC&Rs to ensure community standards are maintained. This includes handling violations and resolving disputes.

• Communication: HOAs must provide contact information for management and respond to homeowner inquiries, especially regarding association rules, budgets, and upcoming community decisions.

• Legal Compliance: The HOA must operate according to state law and its governing documents, including providing required disclosures to prospective buyers and ensuring compliance with fair housing and other legal standards.

Seller’s Duties When Selling in an HOA

• The seller is required to provide all HOA-related disclosures to the buyer, including information about fees, any outstanding violations, and contact information for the HOA or management company.

• In Arizona, sellers must also disclose if there are any pending or anticipated disputes or litigation involving the property or the HOA.

Buyer’s Rights

• Buyers have a period (typically five days after receipt of HOA documents) to review the disclosures and may cancel the contract if they find the terms unacceptable.

Fee Payment Obligations at Closing

• Sellers are generally responsible for paying off any HOA assessments that are liens at closing.

• Buyers assume responsibility for future assessments and must pay any prepaid association fees.