Purchasing property or land in an HOA involves important considerations beyond just the HOA fees. One key question many buyers have is: Do HOAs own the land?
While you legally own your home or vacant lot, the homeowners association (HOA) enforces rules that can significantly impact how you use it. From construction restrictions to parking limitations, understanding an HOA’s authority is crucial, especially if you plan to build a home or store vehicles on your property.
In this guide, we’ll break down your rights as a property owner and how HOA regulations might affect your plans.
Does the HOA Actually Own Your Land?
Before we get into the details of what an HOA can and can’t do, we should first answer the question of whether the HOA owns the land your property sits on. The answer is no.
When you purchase a lot in an HOA-managed community, you are still the legal owner of that land. If you bought a home, you are the owner of the house and the land beneath it. However, the property is still subject to the HOA’s governing documents.
These documents are also called Covenants, Conditions, and Restrictions, or CC&Rs. Although there are similarities between communities, the governing documents of each HOA are NOT universal.
Pros and Cons of Purchasing Land in an HOA
Many HOA communities have tennis courts, swimming pools, and even snow removal facilities for residents in colder climates. However, along with these additional services and amenities come restrictive covenants, which can impact you negatively at times.
When it comes to property ownership, it is essential to understand the Pros and Cons associated with HOAs.
| Pros | Cons |
| Property Value Protection: The result of strict design rules and community standards is well-kept and up-to-date common areas. | Restrictions: HOAs can dictate paint colors, architectural styles, landscaping, and even the number of cars in the driveway, which limits personal freedom and often requires prior approval for minimal changes to the home or land. |
| Shared Amenities and Municipal Services: Some HOAs offer pools, gyms, clubhouses, common area land, or other perks maintained by HOA fees. | Additional Costs: Monthly fees or annual HOA dues can add up. Special assessments for large projects can also create unexpected expenses. |
| Conflict Mediation: HOAs can handle disputes over boundaries or nuisances, saving you from legal hassles with neighbors. | Potential for Overreach: Strict boards or excessive rules can lead to fines or conflicts. |
| Community Engagement: Social events and neighborhood projects are planned year-round, fostering a sense of community. | Foreclosure Risks: Falling behind on dues could, in severe cases, lead to foreclosure. |
Rules and Regulations of Homeowners Associations HOAs
The two areas where HOAs will often restrict what you can build and park on your land.
When you purchase in an HOA community, you’ll need to review the architectural guidelines and parking regulations.
Building on HOA-Regulated Land
If you are building a home on a vacant lot in an HOA-regulated community, the HOA will be part of this building process. An HOA committee and its members will want to play a part in reviewing your initial plans and ensuring property lines are honored, among other things.
- Design Approval: HOAs often have an architectural review committee. You’ll typically submit plans for approval, including exterior materials, height, color, and landscaping elements.
- Setbacks and Lot Coverage: HOAs may require certain distances between structures and property lines. They also limit how much of the lot can be built upon.
- Construction Timeline: Some associations require that you build within a specific timeframe after purchase, or they may have rules about how long construction can last.
- Exterior Aesthetics: Many HOAs have approved color palettes and material guidelines to ensure a cohesive look throughout the community.
- Fines for Violations: If you start building without approval or disregard specific requirements, you can be subject to penalties and could be required to halt or undo work.
Parking on HOA-Regulated Land
Parking rules can be especially strict in HOA communities, especially those with single-family homes, where the covenants restrict homeowners from having a certain number of vehicles and restrictions on the size of the cars.
Here are standard parking regulations you might encounter:
- Driveway vs. Street Parking: Many HOAs prohibit or limit overnight street parking.
- RV and Boat Storage: Some HOAs restrict large vehicles such as RVs, boats, or trailers. They may require these vehicles to be kept in a garage, behind a fence, or off-site.
- Guest Parking: With prior approval, temporary guest parking might be allowed on the street or in designated visitor spots, but long-term guest vehicle storage often isn’t permitted.
- Commercial Vehicles: Check the rules for driving a branded work truck or commercial van. Some HOAs forbid parking commercial vehicles in residential driveways or require a vehicle cover for parking overnight.
- Renting Out Extra Space: If your HOA rules are lenient (especially regarding the number of cars in a driveway), you could rent out your spare driveway space to neighbors looking for a place to store an extra vehicle, RV, or trailer.
Differences Between an HOA and a POA (Property Owners Association)
While we have discussed what Homeowner associations can and can’t do with your land, you may also live in a community with a property owners’ association or POA.
Some people use these terms interchangeably, but they are not exactly the same.
| Feature | Homeowners Association (HOA) | Property Owners Association (POA) |
| Scope | Typically governs a residential community of homeowners. | Can include commercial properties, vacant lots, and other real estate types. |
| Membership | Mandatory for all property owners in the community. | Membership may be broader or optional in a larger community, depending on the POA’s setup. |
| Primary Focus | Maintains the aesthetic value of common areas in a residential area. | Broader real estate matters, which might include business properties or undeveloped land. |
| Enforcement | Enforces CC&Rs through fines, liens, or foreclosure (depending on local law). | Similar enforcement tools, though rules can be more flexible depending on the property types included. |
Final Thoughts
In some parts of the country, most single-family residences are located within an HOA community. If you are looking to purchase in an HOA community, there are certain guidelines regarding the number of vehicles that can be parked on a plot of land that you should consider.
If you can park extra cars, consider using Neighbor to list the extra space and generate revenue. It may help you cover some of the regular fees of owning property in an HOA.
Is It a Mistake to Buy Land in an HOA?
Buying land governed by an HOA isn’t necessarily a mistake. Consider your priorities and your intended use of the land. An HOA might be right for you if you value uniformity, community amenities, and a higher likelihood of stable property values.
If you prioritize complete freedom over using and managing your property, an HOA could feel restrictive.
Always read the CC&Rs and architectural guidelines before closing on a property. In addition, talk to current residents for insights into how strict rules are enforced and whether the board is reasonable or overreaching.
