October 2022
At one time there were only single-family homes. Then high-rise buildings were built in urban areas so we created co-ops, then condominium corporations (stratas in British Columbia) and co-ownership legal structures. All were created so people could continue to own their homes and co-exist peacefully while being obligated to maintain common areas.
In the United States, in areas dominated by single-family housing, owners desired something similar so Home Ownership Associations (HOAs) were created. In Canada, HOAs can only be found in Edmonton where there are at least 30 HOAs or resident associations.
Condominium corporations are planned communities primarily in high-rise buildings combining personal living and shared space.
Condominium corporations are planned communities primarily in high-rise buildings combining personal living and shared space. Developers plan and build the community. Those purchasing in the community abide by laws and rules intended to ensure peaceful co-existence while sharing maintenance costs.
HOAs are also planned communities which may include protection and security in the form of a guardhouse, gates and fences. HOAs manage aesthetics and expectations of a neighborhood and its residents. Each resident is required to join the association, pay fees and comply with rules.
Condominium corporations and HOAs were created so people could continue to own their homes and co-exist peacefully while being obligated to maintain common areas.
Wherever single-family homes are built, HOAs can be desirable. When developers design a community, they put in certain amenities to attract buyers. There may be expansive grass areas, heated swimming pool, tennis courts, golf course, skating rink, clubhouse, private lake with paddle boats, or beach facilities. Someone needs to pay to maintain whatever amenities exist for the community.
Once homes have been sold, the developer is no longer involved and owners are responsible for maintaining amenities. Having a condominium corporation, strata, co-op or HOA solves this problem while providing a way to maintain the aesthetic look of the community. For single-family homes that are part of a HOA, owners may be required to maintain specific features of their home such as window type, paint colour and fencing. They generally pay a monthly or annual fee to maintain amenities while being required to maintain their personal space to specific standards.
HOAs and condominium corporations are popular because most don’t want to live in a run-down community. They allow owners to maintain a higher-quality lifestyle by accessing amenities they could otherwise be unable to afford.
HOAs, like condominium corporations, have rules and by-laws. There are annual financial statements and other documents about the financial state of a community and future spending plans. Those who don’t like or are unwilling to follow rules probably should not live in a condominium or HOA.
Unlike condominium corporations, HOAs have no required management structure. There is no requirement for a board or president, and possibly no established way to deal with problems or obtain information. Where individual owners are solely responsible for maintaining their home, there may be no reserve fund. HOAs are more likely to have a less formal management structure, possibly in the form of one or more unelected owners.
