What is the definition of a Homeowners Association (HOA)?

The definition of a Homeowners Association (HOA) aligns with the characterization of a corporation where each member owns their residential parcel and has shared maintenance responsibilities. HOAs typically operate in residential communities where property owners share common areas and amenities, such as swimming pools, parks, or clubhouses. Each member, while owning their individual property, is also responsible for contributing to the maintenance and upkeep of these shared spaces, which is often outlined in the association’s bylaws. This cooperative aspect is fundamental to what an HOA is, as it fosters a sense of community and ensures that the shared spaces remain in good condition for all residents.

The other options do not fully encapsulate the essence of an HOA, as they either define different types of organizations or imply a lack of shared interest among property owners, which contradicts the collaborative nature inherent in a homeowners association.