Quick Answer
An HOA, or homeowners association, manages a planned community or condo development. If you buy in one, you automatically become a member, agree to follow its rules (called covenants, or CC&Rs), and pay regular dues. In return, the HOA maintains common areas and shared amenities. Many newer Central Indiana subdivisions have one.
- Stands for
- Homeowners Association
- Rules are called
- Covenants / CC&Rs
- You pay
- Regular dues (monthly, quarterly, or yearly)
- Covers
- Common areas, amenities, sometimes services
- Membership
- Automatic when you buy in the community
What an HOA Does
An HOA is a governing body — usually run by a volunteer board of resident homeowners, sometimes with a professional management company — that oversees a neighborhood, condo building, or planned development. Its job is to maintain shared property and enforce a common set of standards so the community stays consistent and well-kept.
Common areas an HOA might maintain include entrance signage, sidewalks, retention ponds, playgrounds, pools, clubhouses, and landscaping in shared spaces. In condos and townhomes, the HOA often handles exterior building maintenance too.
HOA Dues and What They Cover
HOA dues fund the association's budget. How much you pay depends on the community and what it maintains — a subdivision with just a pond and a common entrance costs far less than a condo with a pool, gym, and exterior upkeep. Dues can be billed monthly, quarterly, or annually.
Associations also keep a reserve fund for big-ticket repairs. Occasionally, if reserves fall short, an HOA may levy a "special assessment" — a one-time charge on owners. It's worth asking about a community's reserves and assessment history before you buy.
Rules, Covenants, and Restrictions
When you buy in an HOA community, you agree to its covenants, conditions, and restrictions — the CC&Rs. These can govern things like exterior paint colors, fences, sheds, parking, short-term rentals, and even the type of mailbox you can install. The goal is to protect property values, though the rules aren't for everyone.
Review the CC&Rs carefully. If you plan to rent the home, run a home business, or park an RV, make sure the community allows it before you're committed.
What Indiana Buyers Should Check Before Closing
In Indiana, HOA documents are part of your due diligence. Before closing, request the current dues, the CC&Rs, meeting minutes, and the association's financials. Your agent can help you gather these and read the seller's disclosure.
HOA dues also factor into your monthly budget, so include them when you run the numbers on our mortgage calculator.
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Frequently Asked Questions — HOA (Homeowners Association)
Are HOA dues required?
Yes. If a property is in an HOA, paying dues isn't optional — it's a legal obligation tied to owning the home, and unpaid dues can lead to fines or a lien against the property.
Can an HOA really tell me what I can do with my home?
Within the limits of its recorded covenants, yes. HOAs can enforce rules on exterior changes, landscaping, parking, and rentals. Always read the CC&Rs before buying so there are no surprises.
Do all homes in Central Indiana have an HOA?
No. Many older neighborhoods have none, while most newer subdivisions and condo developments do. Your agent can tell you whether a specific property comes with one.