Did you know...there is a difference between a COA and HOA?

Did you know...there is a difference between a COA and HOA?

People often use the term "HOA" (short for Homeowner's Association) as a generic term when referring to condos, townhouses and some single family homes but that is technically not correct.

A COA (or Condominium Owners' Association) applies only to condominiums. A Condo Association is governed by its “Docs” (or “documents”) which usually include the Declaration of Condominium, By-Laws and (sometimes) Rules and Regulations. The “docs” usually spell out the procedure for electing the Board of Directors (BOD) and their duties, among other things. The Board is elected by the unit owners in the complex and it is the Board's responsibility to maintain the complex and its common areas.

Some items that may be handled by the Association include lawn and pool care, landscaping, exterior painting of the building and roof repair. Most, if not all, exterior maintenance usually falls under the duties of the Association but this can vary from one COA to another.

The Board of Directors is also responsible for enforcing the standards in the Rules and Regulations, By-Laws and Declaration of Condominium. 

An HOA (Homeowners' Association) frequently governs townhouse communities and is similar to a COA but there can be significant differences.

Note that while most townhouses have a Homeowner Association, not all do so it is important to ask if there is a HOA and what its responsibilities are. If there is no Homeowner Association, be sure to inquire who is responsible for what maintenance.

The Condo Association (and most Homeowner Associations) collects monthly fees to cover the costs of maintaining and insuring the property. The monthly fee can vary widely from one COA/HOA to another in the same area. The fee depend on what it includes and the amenities offered in the complex, among other things. Your REALTOR® is your best source for further information when considering a condo or townhouse.