Home Owners Association || What you should know

HOAs are one of those things in real estate that people either love or genuinely can't stand — and a lot of buyers don't fully understand what they're signing up for until after they've already closed.

Let me break it down.

What is an HOA?

A Homeowners Association is basically a governing organization for a neighborhood, condo complex, or townhome community. When you buy a home in one of these communities, membership is automatic — you don't get to opt out. You pay dues, you follow the rules, and in exchange, the HOA manages certain aspects of the community on everyone's behalf.

What do your dues actually cover?

It depends heavily on the community, but here's what's common:

For single-family home HOAs — think planned neighborhoods and subdivisions — dues typically cover landscaping and maintenance of shared common areas, community amenities like a pool, clubhouse, or fitness center, exterior standards enforcement (so your neighbor can't let their lawn turn into a jungle), and sometimes snow removal from shared roads or sidewalks.

For condo and townhome HOAs, it often goes further — building exterior maintenance, roofing, shared hallways, and sometimes even water and trash are bundled into your monthly fee.

Dues can range anywhere from $50/month on the low end to several hundred dollars a month for communities with extensive amenities. And yes — they can go up over time.

The case FOR buying in an HOA:

If you're someone who values a well-maintained neighborhood appearance, access to amenities without maintaining them yourself, and a community where standards are enforced, an HOA might be a great fit. Research consistently shows HOA homes sell for a premium compared to similar non-HOA properties — buyers like knowing the neighborhood will stay looking sharp.

There's also a conflict-avoidance benefit that doesn't get talked about enough. If your neighbor's yard is becoming an eyesore, or they're parking an RV in the street every weekend, you don't have to have an awkward conversation. That's the HOA's job.

The case AGAINST:

The restrictions are real, and some people underestimate them until they're living inside them. Depending on the HOA, they can tell you what color you can paint your house, whether you can park a boat or RV in your driveway, whether you can run a business from home, whether short-term rental (like Airbnb) is allowed, and how high your grass can grow before you get a fine.

If you're a "my house, my rules" kind of person — and there's nothing wrong with that — an HOA community might feel suffocating over time.

There's also financial risk. Beyond the monthly dues, HOAs can levy what's called a special assessment — a one-time charge for a major repair or project the regular reserves can't cover. Think new roof on a condo building, repaving roads, major pool repairs. These can be in the thousands, and they can come with limited notice.

And the worst case scenario that most buyers don't know about: if you stop paying your HOA dues, the HOA can put a lien on your home — and in some states, eventually foreclose. That's not a threat to take lightly.

What to look at BEFORE you buy into an HOA:

This is where most buyers drop the ball. They see the pool and the tidy neighborhood and say yes without reading the fine print. Here's what I recommend:

Minnesota-specific heads up — Buyers have built-in protection here.

In Minnesota, once you're under contract on a property with an HOA, the seller is required to provide you with what's called the CIC (Common Interest Community) documents. From the moment you receive them, you have 10 days to review everything — the financials, the rules, the meeting minutes, all of it. If something in those documents makes you uncomfortable, you have the right to cancel the contract and walk away. No penalty.

It's essentially a built-in contingency that gives you time to really understand what you're signing up for before you're locked in. So if you're feeling nervous about an HOA community, know that you won't be flying blind — there's a legitimate window to do your homework and make sure it's actually the right fit.

Read the CC&Rs (Covenants, Conditions, and Restrictions). This is the governing document. It tells you exactly what's allowed and what isn't. Biggest question is pet restriction, rental allowance and exterior changes.

Review the financials. Ask for the HOA's current budget and reserve fund balance. A well-funded reserve means the HOA has been saving for big future expenses. A depleted reserve is a red flag — it means a special assessment is potentially coming, and you'd be on the hook for it.
Want an example, ask me about my sellers condo in St. Paul off Ramsey st.

Read the meeting minutes. The last 6–12 months of meeting minutes will tell you more about an HOA than any marketing brochure. Are the same issues coming up over and over? Are residents fighting with the board? Is maintenance being deferred? The minutes tell the real story.

Look at the neighborhood with fresh eyes. Walk or drive through and actually look. Are the common areas maintained? Do the homes look cared for? Visible neglect in an HOA community is a sign that either enforcement is weak or money is tight — neither is great.

Ask about pending assessments and litigation. Your agent should be requesting these disclosures as part of the purchase process. If the HOA is currently in a lawsuit or has a major repair project coming up with no budget for it, you need to know that before you close.

My honest take:

HOAs aren't inherently good or bad — they're a tradeoff. You're trading some of your freedom and flexibility in exchange for a maintained community and shared amenities. For some people and some lifestyles, that's a fantastic deal. For others, it's a constant source of frustration.

The mistake isn't buying in an HOA. The mistake is buying in one without reading what you're agreeing to.

If you're looking at a home in the Twin Cities that has an HOA and you want a second set of eyes on the documents before you commit, that's exactly the kind of thing I help clients with. Drop a comment or send me a message — happy to walk through it with you.