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The Homeowner’s AssociationIf you ask most homeowners what they like least about their new home, you’ll probably hear a lot about the restrictions and rules placed on them by their homeowner’s association (HOA). And yet, there were more than 63.4 million Americans living within association-governed communities in 2012.

While HOAs and Condo Associations are a source of tension for many homeowners, they also provide a lot of value for homeowners. Plus, they’re not going anywhere.

So if you’re a first-time homebuyer who is new to an HOA, our guide to homeowner’s associations will help you understand your rights and obligations as an HOA member.

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The Benefits of an HOAHomeowner’s Associations come with a host of benefits for homebuyers, especially for those living in a shared community or condo with amenities. HOAs help homeowners defend the value of their properties through enforced regulations, perform maintenance and upkeep on community assets and help pay for any upgrades to the community.

Tip: HOAs manage amenities and servicesby charging monthly fees. Before you buyyou should account for these fees in yourmonthly expenses. Many buyers can besurprised by fees. Check out our First-TimeHomebuyer Checklist to make sure youPlan for all new expenses.

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Following the RulesThe benefits of an HOA do come with some rules that some homebuyers may find restricting. It fact, these are major source of tension between owner and HOA. Each HOA or condo association typically have a written set of covenants, conditions and restrictions, or CC&R, that apply to every homeowner. These will state all the rules you’ve agreed to follow as a resident of the community.

While many rules simply govern how often your grass should be cut or where guests can park, you often hear about HOA disputes regarding people flying American flags – some rules may simply rub you the wrong way, but you may feel that others truly restrict how you plan to use your home.

Any breach in the CC&R can lead to legal action from your HOA if not resolved, including foreclosure on your home. But don’t worry, you have some options to fight for what you think is right.

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Changing the RulesIt may sometimes feel like it, but HOAs are not authoritarian groups. As a member and resident, you have both the right to challenge an HOA ruling, and you can vote to change the CC&R documents that govern the association. This will require some help and drive from your neighbors, but if there is common consensus to make a change, the CC&R rules are not set in stone.

Many times, you can avoid a fightsimply by requesting that your HOAmake an exception to a rule. If youcan document the action you’d liketo take and ask the HOA board for permission, you’d be surprised at theresults. This is one case where it’smuch simpler to ask permission than for forgiveness.

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Know Your RightsMost HOA CC&R documents list the rights that homeowners have when disputing an action or ruling from within the HOA, but remember that you still have your full legal rights.

Hiring a real estate attorney, by yourself or with a group of your neighbors, can help you protect yourself during a disagreement, but it’s not a guaranteed method of success.

Unfortunately, the laws around your rights and duties within an HOA ismurky, at best. If you believe that anHOA rule restricts you beyond the CC&R,a real estate attorney can help.

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The Good NewsOK, all of that sounded bad, but there is always a bright side. While HOA disputes can be nasty for people who don’t like to be told what to do, the vast majority of people are happy with their HOA. Check out these stats from the Foundation for Community Association Research:

• 90% of residents rate their overall community association experience as positive (64%) or neutral (26%).

• 90% of residents say association board members "absolutely" or "for the most part" serve the best interests of their communities.

• 92% say they are on friendly terms with their association board.• 83% of residents say their community managers provide value and support to residents

and their associations.• 70% of residents say their association's rules protect and enhance property values; only

4% say the rules harm property values.

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A First-Time Homebuyer’s Guide to HOAs

Learn More About Home Financingand First-Time Homebuyer Programs

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