What Is an HOA? (And How It Differs From a Condo Association)

Whether you are buying your first condo, comparing neighborhoods, or newly serving on a board, understanding how a homeowners association works helps you avoid surprises. Here is a plain-English explanation of what an HOA is, what it does, and how it differs from a condominium association — with the Washington State context that applies to Seattle buyers and owners.

What Is an HOA?

A homeowners association (HOA) is a nonprofit organization that governs a residential community — a subdivision, planned development, townhome community, or condominium. When you buy a home within it, you automatically become a member, agree to follow its rules, and pay regular dues that fund shared expenses. The association is run by a board of directors elected by the owners.

HOA vs. Condominium Association: What's the Difference?

People use "HOA" loosely, but there is a real distinction:

• In a condominium, you own the interior of your unit and share ownership of the common elements (roof, exterior, land, hallways). The condo association maintains those common elements.
• In a traditional HOA (a planned community of single-family homes or townhomes), you typically own your home and lot, and the association maintains shared amenities and common areas such as landscaping, private roads, or a clubhouse.

Both collect dues, adopt rules, and are run by an elected board; the main difference is what is individually owned versus commonly owned.

What Does an HOA Do?

• Maintains and repairs common areas and shared amenities.
• Collects dues and manages the association's budget and reserves.
• Carries insurance on common property.
• Adopts and enforces community rules (the CC&Rs and regulations).
• Plans for major long-term repairs through a reserve study.

HOA Dues — What Do They Cover?

Monthly or annual dues (assessments) fund the association's operating budget and its reserve savings. Typical line items include insurance, utilities for common areas, landscaping and maintenance, management, and contributions toward future capital repairs. When a large expense exceeds available reserves, the board may levy a one-time special assessment.

CC&Rs and Community Rules

The Declaration of Covenants, Conditions & Restrictions (CC&Rs) is the association's master rulebook. It defines what owners can and cannot do — from exterior modifications and pets to rentals and parking — and gives the board authority to enforce those rules and collect assessments. Reviewing the CC&Rs before buying is essential.

Who Runs the HOA?

Owners elect a volunteer board of directors that makes decisions on behalf of the community — setting the budget, maintaining common areas, and enforcing rules. Many associations hire a professional management company to handle day-to-day operations, but the board retains governing authority.

Pros and Cons of Living in an HOA

• Pros: maintained common areas, protected property values, shared amenities, and a framework for resolving neighbor issues.
• Cons: mandatory dues, rules that limit some choices, and the risk of special assessments if reserves are underfunded.

HOAs in Washington State

Washington associations are governed by statute — principally RCW 64.38 for homeowner associations, RCW 64.34 for condominiums, and the newer WUCIOA (RCW 64.90), which adds modern reserve, disclosure, and governance requirements. For the full picture, see our guide to Washington State condo and HOA laws.

Related Resources

• The Complete Seattle Condo & HOA Management Guide
• Understanding Washington State Condo Laws in 2026
• What Does a Condo or HOA Management Company Do?
• Seattle Condo & HOA Management Services