<P> In the United States, a homeowner association (or homeowners' association, abbreviated HOA, sometimes referred to as a property owners' association or POA) is a private association often formed by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision . Typically the developer will transfer ownership of the association to the homeowners after selling a predetermined number of lots . Generally any person who wants to buy a residence within the area of a homeowners association must become a member, and therefore must obey the governing documents including Articles of Incorporation, CC&Rs (Covenants, Conditions and Restrictions) and By - Laws, which may limit the owner's choices . Most homeowner associations are incorporated, and are subject to state statutes that govern non-profit corporations and homeowner associations . State oversight of homeowner associations is minimal, and it varies from state to state . Some states, such as Florida and California, have a large body of HOA law . Other states, such as Massachusetts, have virtually no HOA law . Homeowners associations are commonly found in residential developments since the passage of the Davis--Stirling Common Interest Development Act in 1985 . </P> <P> The fastest - growing form of housing in the United States today are common - interest developments (CIDs), a category that includes planned unit developments of single - family homes, condominiums, and cooperative apartments . Since 1964, HOAs have become increasingly common in the United States . The Community Associations Institute trade association estimated that in 2010, HOAs governed 24.8 million American homes and 62 million residents . </P>

What is the purpose of a homeowners association