Shandron Bonds of Georgia Explains the Key Differences Between Homeowner and Condominium Associations

Shandron Bonds of Georgia, a licensed broker with the Georgia Real Estate Commission, holds various certifications as a Professional Community Association Manager, Certified Manager of Community Associations, and Association Management Specialist from the National Board of Community Association Managers. In 2004, she founded POSolutions, Inc., a pioneering real estate brokerage firm redefining asset management. Serving HOA and condo associations, as well as government and county agencies, POSolutions focuses on building stronger, safer communities that preserve value.

Below, Shandron Bonds discusses the distinctions between Homeowner Associations (HOAs) and Condominium Associations (COAs), and why this knowledge is crucial for prospective buyers, current homeowners, and real estate professionals. Although both types of associations aim to maintain and enhance the value and livability of residential communities, they differ in structure, responsibilities, and management.

Shandron Bonds Discusses Structure and Ownership

Homeowner Associations (HOAs)

Property Ownership: In an HOA, residents own their homes and the land on which their homes are built. Common areas such as parks, clubhouses, and swimming pools are jointly owned by all homeowners within the community.

Detached Homes: HOAs typically govern communities of single-family detached homes. Each homeowner is responsible for the maintenance and upkeep of their property, including the exterior and landscaping.

Common Areas: Common areas are maintained by the HOA and funded by dues paid by the homeowners. Shandron Bonds of Georgia says that these areas are shared by all members of the association.

Condominium Associations (COAs)

Property Ownership: In a COA, residents own their individual units, but the building, land, and common areas are collectively owned by all unit owners. Ownership extends only to the interior of the unit.

Attached Units: COAs generally govern buildings with attached units, such as condominiums, townhouses, or apartments. Shandron Bonds of Georgia explains that maintenance responsibilities are often shared between the association and the unit owners.

Common Elements: Common elements, including hallways, roofs, exterior walls, and recreational facilities, are maintained by the COA. The cost of maintenance is covered by the association dues paid by unit owners.

Responsibilities

Homeowner Associations (HOAs)

Community Standards: HOAs enforce community standards and rules as outlined in the governing documents, which typically include covenants, conditions, and restrictions (CC&Rs). These standards may cover architectural guidelines, landscaping, noise levels, and other aspects to maintain a cohesive community appearance.

Maintenance: The HOA is responsible for maintaining common areas and amenities. Homeowners are responsible for the upkeep of their individual properties, including the exterior, lawn, and driveway.

Assessment Fees: Shandron Bonds of Georgia reports that HOA fees are collected to cover the cost of maintaining common areas, security services, and community amenities. The fees may also fund reserve accounts for future repairs and improvements.

Condominium Associations (COAs)

Building Maintenance: COAs are responsible for maintaining the exterior of the building, common areas, and shared facilities. This includes tasks such as roof repairs, exterior painting, landscaping, and maintaining amenities like gyms and swimming pools.

Interior Maintenance: While the COA handles exterior maintenance, unit owners are typically responsible for the interior maintenance of their units. This includes plumbing, electrical work, and interior repairs.

Assessment Fees: COA fees tend to be higher than HOA fees because they cover a broader range of maintenance responsibilities, including building insurance, utilities for common areas, and the upkeep of shared facilities.

Management

Homeowner Associations (HOAs)

Board of Directors: Shandron Bonds of Georgia reports that HOAs are managed by a board of directors elected by the homeowners. The board makes decisions on behalf of the community, enforces rules, and manages the association’s finances.

Property Management: Some HOAs hire professional property management companies to handle day-to-day operations, such as collecting dues, coordinating maintenance, and enforcing rules. However, smaller HOAs may be self-managed by the board.

Meetings and Voting: Regular meetings are held to discuss community issues, approve budgets, and make decisions. Homeowners have the right to vote on important matters and elect board members.

Condominium Associations (COAs)

Board of Directors: Like HOAs, COAs are overseen by a board of directors elected by the unit owners. The board is responsible for managing the association’s affairs, enforcing rules, and overseeing maintenance.

Professional Management: COAs often hire professional management companies to handle administrative tasks, financial management, and maintenance. This is particularly common in larger condominium complexes.

Meetings and Voting: COAs hold regular meetings where unit owners can discuss community issues, vote on important matters, and elect board members. Transparency and communication are essential for effective management.

Legal and Financial Considerations

Homeowner Associations (HOAs)

Governing Documents: The governing documents of an HOA include the CC&Rs, bylaws, and rules and regulations. Shandron Bonds of Georgia says that these documents outline the association’s powers, responsibilities, and procedures for enforcement.

Legal Compliance: HOAs must comply with federal, state, and local laws, including fair housing laws and regulations specific to homeowner associations. Legal advice may be sought to ensure compliance and handle disputes.

Financial Management: HOAs must maintain accurate financial records, prepare annual budgets, and conduct regular audits. Financial transparency is crucial to maintain homeowner trust and avoid legal issues.

Condominium Associations (COAs)

Governing Documents: The governing documents of a COA include the declaration, bylaws, and rules and regulations. These documents define the association’s responsibilities, unit owner rights, and procedures for maintenance and enforcement.

Legal Compliance: COAs must adhere to federal, state, and local laws, including condominium-specific regulations. Legal counsel is often engaged to navigate complex legal requirements and resolve disputes.

Financial Management: COAs manage substantial financial responsibilities, including building insurance, reserve funds, and maintenance costs. Regular financial reports, audits, and reserve studies are essential to ensure financial health and compliance.

Conclusion

Both Homeowner Associations (HOAs) and Condominium Associations (COAs) play vital roles in maintaining residential communities, but they differ significantly in structure, responsibilities, and management. Shandron Bonds of Georgia explains that understanding these differences is essential for homeowners, prospective buyers, and real estate professionals. By recognizing the unique aspects of each type of association, individuals can make informed decisions and contribute to the effective governance and maintenance of their communities. Whether you are considering purchasing a home governed by an HOA or a condominium unit under a COA, being well-informed about their respective roles and responsibilities will help you navigate the complexities of community living.