Property Owners Association Information
If you’re looking into purchasing or investing in urban or suburban properties, you may find yourself introduced to property owners associations (POAs). While there are some similarities to homeowner associations (HOAs), there are some significant differences you should be aware of.
Here, we provide a quick breakdown of what a POA is, what it does, who it serves, and how it may differ from other community management organizations.
What Is a POA?
As the name suggests, a property owners association comprises those who own property in an area, but those properties can be made up of several different types. For example, a POA property can be single-family homes, condos, duplexes, townhouses, and even commercial properties. There are even cases where a member is not necessarily a property owner but a property manager for properties within the jurisdiction of a POA.
Similar to a homeowners association, the purposes of a POA are long-term development, overall community improvement, and protection of property values.
What Will a POA Do For Me?
While POAs may be similar to HOAs or COAs in the sense of maintaining property values and upkeep, a POA can take things a step further and include services, programs, and committees that can benefit the whole community. While you might not see much focus on common HOA topics such as what color houses are painted or roof designs, a POA will more likely focus on community-centric matters as shared parks, events, business licenses, clubs, and other local organizations.
As for the area, a POA could encompass a single neighborhood, a town, or several towns. Conversely, a POA could also focus simply on one specific site such as a historical district, geographic boundary (e.g., valley or watershed), or even a large golf course. And within that POA, there could exist one or several HOAs or COAs.
Those neighborhoods or group organizations could fall under a single POA that informs and oversees the individual neighborhood or community organization associations regarding development and aesthetics. By doing so, a POA can help an entire town maintain a sense of consistency in terms of atmosphere and experience.
POA boards may hold town meetings to decide on specific community issues that align with their original mission in forming the POA. In a way, you can view a POA as a planned community that continues to follow the plan it started with. Some property owners should keep this in mind if they are looking to introduce any changes. It’s typically more challenging to institute changes in a POA than other owner organizations.
As far as membership is concerned, a POA may or may not be mandatory, but members can expect yearly fees in addition to any existing HOA or COA’s monthly fees.
Henderson Association Management is ready and able to meet your community management needs. Contact us today to learn more about how we can support your community. We look forward to hearing from you!