Homeowner association facts for kids

Kids Encyclopedia Facts

A homeowner association (HOA) is an American real estate term. It is a corporation formed by a real estate developer to market, manage, and sell homes and lots in a residential place.

Later, after a neighborhood is settled, the term may describe a group of home owners which set rules for the neighborhood. The purpose of a home-owners association is to improve the neighborhood's image. The members of a home-owner's association hope that, by improving the image, the values of their homes will rise. If the rules are violated by a home-owner, the home-owners association can force him to pay money. If he refuses, the home-owner's association can take away his house.

The fastest growing form of housing in the United States today is common-interest development (CID), a category that includes various housing types. Since 1964, HOAs have become increasingly common in the United States. HOAs governed 24.8 million American homes and 62 million residents by 2010.

Homeowner association Facts for Kids. Kiddle Encyclopedia.