what is a property owners association

2 min read 15-04-2025

A Property Owners Association (POA) is a legal entity created to manage and maintain common areas within a planned community. Often confused with Home Owners Associations (HOAs), POAs differ in their scope and authority. While both manage shared spaces, POAs typically exert less control over individual property owners than HOAs. Understanding the key differences is crucial for prospective buyers in planned communities.

POA vs. HOA: Key Differences

The core difference lies in the level of control. HOAs often have extensive governing documents dictating everything from landscaping to exterior paint colors. POAs generally focus on maintaining shared amenities and infrastructure, granting homeowners more autonomy over their individual properties.

Here's a table summarizing the key differences:

Feature	Property Owners Association (POA)	Home Owners Association (HOA)
Control Level	Less restrictive; focuses on common areas.	More restrictive; often dictates property maintenance and aesthetics.
Governance	Simpler structure; fewer regulations.	More complex structure; detailed governing documents and rules.
Assessments	Typically lower; primarily for maintenance of shared spaces.	Can be higher; covers a wider range of community expenses.
Enforcement	Less stringent enforcement of rules.	Stricter enforcement of rules and regulations.

What does a POA typically manage?

POAs are primarily responsible for the upkeep of shared amenities and infrastructure within a development. This commonly includes:

Roads and streets: Maintenance, repair, and snow removal.
Common areas: Parks, green spaces, recreational facilities.
Utilities: Sometimes responsible for shared utilities like water or streetlights.
Security: May provide basic security measures like lighting or gated access.
Architectural review: A less stringent process compared to HOAs.

What a POA doesn't typically manage:

Unlike HOAs, POAs typically don't control:

Exterior paint colors: Homeowners usually have more freedom in choosing exterior colors and materials.
Landscaping on individual properties: Maintenance of private yards is the homeowner's responsibility.
Architectural details of individual homes: Fewer restrictions on home improvements and renovations.

Understanding POA Assessments and Fees

POAs still require funding to maintain common areas. This is typically done through annual assessments paid by property owners. These assessments are usually lower than HOA fees because they cover a smaller scope of responsibilities.

The Benefits of Living in a POA Community

Living in a community managed by a POA offers several advantages:

Shared responsibility: The burden of maintaining shared amenities is distributed among owners.
Enhanced property values: Well-maintained common areas can contribute to higher property values.
Sense of community: POAs can foster a sense of community through shared recreational spaces.
Greater autonomy: Homeowners enjoy more freedom in customizing their properties.

The Drawbacks of Living in a POA Community

While offering benefits, POAs also have potential drawbacks:

Limited services: Compared to HOAs, POAs may provide fewer services.
Lack of strict enforcement: Less strict rules may lead to inconsistencies in maintenance.
Potential for future changes: The POA's level of involvement could increase over time.

Is a POA Right for You?

The decision of whether a POA community suits your needs depends on your priorities. If you value a greater degree of autonomy over your property and prefer a less regulated environment, a POA may be the perfect fit. However, if you prefer a more structured community with extensive services and strict regulations, an HOA might be a better option. Carefully review the POA’s governing documents and understand your responsibilities before purchasing property in a POA community. Consult with a real estate professional for guidance.