HOA Defined

• A homeowners association is a group of homeowners in the same property development responsible for managing the day-to-day operations of the development. Homeowners associations exist in developments of single-family homes as well as condominium and cooperative communities. HOAs ensure that common areas are maintained, arrange for repairs and maintenance, and pay any other debts of the development. They also enforce the terms of the HOA bylaws and have the power to penalize homeowner offenders by assessing fines.
  
  

HOA Dues Statements

• One type of statement issued by an HOA is a dues statement. To fund the day-to-day operations of the development as a whole, HOAs collect dues from all development homeowners. The HOA determines the amount of dues and then bills the homeowner via an HOA dues statement. HOA dues are usually billed monthly or quarterly. Homeowners are legally obligated to pay HOA dues by way of deed restrictions and covenants entered into at the time of purchase.
  
  

HOA Financial Statements

• Another type of statement issued by an HOA are financial statements. HOAs are required by their bylaws to keep track of the financial health of the property development. The primary statement created by an HOA is a balance sheet. This statement accounts for the assets, liabilities and equity belonging to an HOA. HOAs also maintain Income and Expense statements. This document shows income and expenses over a particular period as well as any variances (+/-) in budget.
  
  

Viewing HOA Statements

• HOAs must allow homeowners to view all financial statements. This mandate usually appears in the HOA bylaws. But in almost every state, this mandate is part of state law. All HOAs mail dues statements to homeowners. Many HOAs mail financial statements to homeowners periodically or post them for viewing on the HOA's website. Some HOAs make financial statements available to homeowners for viewing at the HOA main office during prescribed times.