Difference Between Property Owners Association (poa) And Homeowners Association (hoa)

By Author: Kirkpatrick Management Company
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When buying property in a planned community, you may encounter terms like Homeowners Association (HOA) or Property Owners Association (POA). While these two are often used interchangeably, they serve different functions and have distinct characteristics. Understanding the differences can help you make more informed decisions as a property owner.

1. Definition
Homeowners Association (HOA):
An HOA is a governing body typically established by a residential community such as a subdivision, condominium complex, or townhouse development. It enforces rules and manages common areas that directly affect the homeowners.

Property Owners Association (POA):
A POA has a broader scope. It can include not just residential homeowners but also commercial property owners, landowners, and vacant lot holders. A POA may manage a larger community or region and oversee multiple types of properties.

2. Scope and Membership
• HOA:
o Limited to residential properties.
o Membership is usually mandatory for homeowners in the community.
o Focuses on maintaining home values and neighborhood ...
... aesthetics.

• POA:
o Can include residential, commercial, industrial, and undeveloped land.
o Membership may include various types of property owners, not just homeowners.
o Has a broader community focus beyond just housing.

3. Functions and Responsibilities
• HOA Responsibilities:
o Enforcing community rules.
o Maintaining common areas like pools, parks, landscaping.
o Collecting dues from homeowners.
o Managing architectural review for home improvements.

• POA Responsibilities:
o Overseeing large-scale community amenities like golf courses, trails, commercial zones.
o Coordinating with city or county on infrastructure or zoning issues.
o Promoting economic development or long-term land use planning.
o May act as a broader civic or development organization.

4. Legal Authority
• HOA:
o Governed by state laws and community-specific governing documents.
o Has the power to fine, lien, or otherwise penalize homeowners for rule violations.

• POA:
o May have similar powers, but authority varies more widely.
o Often structured more like a non-profit or civic group than a regulatory body.

5. Community Impact
• HOA:
Impacts homeowners directly, often with strict rules intended to preserve home values and uniformity in residential neighborhoods.

• POA:
Has a broader focus on the overall development, infrastructure, and property value of a larger community or region.

Final Thoughts
If you are purchasing property, it's important to know whether it falls under an HOA or POA or both. While both entities aim to maintain and enhance the value of properties within their jurisdiction, they differ significantly in their scope, responsibilities, and impact on daily life. Always review the governing documents and understand your obligations before buying.
For more on HOA & POA visit us at https://www.ekirkpatrick.com/