HOA, POA, and COA: many aspiring homeowners get confused with these acronyms. Many owners have to decide whether they want to work with any form of HOA, POA, or COA when they are trying to find a new place to live. Read here to learn more about these different types of associations.
HOA, POA and COA: Differences and Similarities
Before signing any contract where the community you will be living in has any form of HOA, POA, or COA, it is important to have a clear understanding of what these three associations are for and how they operate. This way, you can avoid unpleasant situations where you financially struggle due to a lack of knowledge of these associations. To learn more about the differences between a POA, HOA & COA, review the information below:
What Is a POA? What Does POA Stand For?
A Property Owner’s Association consists of a governing body including both HOAs and COAs. The primary purpose of a POA is to be a supportive body to the other organizations. For residents living in a community that is affiliated with a POA, the POA fees are already combined with HOA or COA fees. A POA is beneficial to residents because it provides legislative, networking, and educational benefits to property owners. That said, a POA has different regulations and bylaws from those of an HOA or COA. Members are not only homeowners but also have the potential to be business property managers as well.
What Is an HOA? What Does HOA Stand For?
HOA stands for Homeowner’s Association and is for homeowners who own both lots and homes. It essentially governs and manages regulations for a particular residential community. Aside from that, it also manages and maintains common recreational areas including playgrounds or pools. You as a homeowner can be an automatic member, depending on the community’s specific guidelines. Homeowners follow regulations that range from landscape upkeep to permitted outdoor decorations. Any alterations to a property must be approved by the Board of Directors.
HOAs have an objective of maintaining community standards and upkeep, which makes them able to have a high resale value. The HOA fees collected by an association on a regular basis. This money goes into the maintenance of common areas. A part of these funds also go into replacement and upgrades of community facilities as needed.
HOA vs POA
Similar homes and residences make up an HOA meaning that these communities are usually entirely residential. Almost all properties in a typical HOA are homes, with the exception of the common areas and amenities. You can think of an HOA’s rules, goals and processes as things aimed for homeowners. An HOA does everything in a way that is aimed to create a comfortable, beautiful and safe community for homeowners. In turn, these goals end up raising the overall property values in the community, which is another goal of most HOAs.
A POA, like an HOA, also governs residential properties. The difference, however, lies in their primary goals. An HOA is almost entirely focused on the residential aspect of a community. A POA, on the other hand, has more types of properties to cover. Most POA communities also govern other types of properties, including residential and commercial ones.
As a result, POAs have a broader focus on focusing an area. You can even think of a POA’s focus as something similar to developing a town. POAs are responsible not just for residential conccerns, but also for implementing projects for other zones as well. They may act to develop business zones, improve community areas, and build projects that link the two.
What Is a COA? What Does COA Stand For?
A COA stands for Condominium Owner’s Association. Condominium owners make up the membership of COAs. Condominium owners own their particular units and also have joint ownership in the building and grounds with other units. COA fees cover common areas and also any building repairs or required maintenance.
Should I Invest in a Community That Has One Of A POA, HOA, and COA?
Many individuals have difficulty deciding whether they should invest in a community that has any form of an organization designed to regulate the community and also charges regular fees. The takeaway is to understand the substantial increase that POAs, HOAs, and COAs offer to property prices in the long-term. Owning a home in a beautiful community has its prestige. On the other hand, communities where the landscaping or common areas has not been maintained present a poor impression to potential buyers. Also, if one resident in the community has decided to create an exterior design that greatly conflicts with the community’s style, then this can also discourage potential buyers. POAs, HOAs, and COAs can be very valuable to residents and they are not something that should be fretted when purchasing properties.
What Do POAs, HOAs, and COAs Require of Residents?
One of the most important decisions that you will make as a prospective homeowner is whether you are willing to invest in a community with a POA, HOA, or COA. Before making any final decisions, it is vital to have a clear understanding of what your particular community requires in terms of their POA, HOA, or COA agreement. You can make a better decision once you have a clear knowledge of what a community expects of you. Especially in terms of financial obligations and community regulations. Purchasing a property that has a POA, HOA, or COA can be an excellent investment. They will provide you with substantial real estate property investment returns in the future.
How A Community Management Company Can Help POAs, HOAs, or COAs
It’s better to carefully consider all of your options when deciding how to manage your community’s POA, HOA and COA. Professional community management companies can serve as a reliable partner to your Community Association. This way, you have stronger processes and more stable finances. To learn more about how a community management can help you with , give us a call.
- 9 Things To Consider When Planning A Budget For A Community Association
- HOA Governing Document Hierarchy
- What Are The Financial Responsibilities Of HOA Board?