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Difference Between Neighborhood Association and Homeowners Association

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Some people use neighborhood association and homeowner’s association interchangeably because of the similarity in names, but these are actually two different entities.

You might not know what makes these two associations different from each other, the definition of each, their purpose, and the difference between them. This article will cover all of it.


group of residents


What Is A Neighborhood Association?

A neighborhood association refers to a group of residents that voluntarily work together in order to improve their neighborhood’s quality of life and maintain it.

This type of organization is often created by concerned homeowners or neighbors regarding some issues or as a way of developing their community for the betterment of all residents.

Members can be residents, businesses, and property owners in the neighborhood. While membership is voluntary, the association establishes boundaries that should be respected by each member.

A legal authority won’t enact design or maintenance requirements except those established by County or City Ordinances.

What Is A Homeowners Association?

A homeowners association is a formal legal entity that is formed to implement private deed restrictions and maintain common areas.

Townhouse and condominium developments including single-family subdivisions are run by homeowners associations after the developments are built.

Every property owner inside the premises of the development automatically becomes a member of the organization.

Members are mandated to pay mandatory fees and annual dues, while the homeowner association has the authority to implement design and maintenance standards besides those established and enacted by the County or City Ordinances.


Homeowners Association


What Makes Neighborhood Associations Different From Homeowners Associations?

Since the term homeowners association is often confused with the neighborhood association, it’s important to differentiate these two entities and understand what makes them different. Below are the key differences between the two associations:

  • Neighborhood associations are formed according to the rules of the state level or city government, and they are created in established neighborhoods. On the other hand, HOA is established when a residential development is built. Sometimes, neighborhood associations are established along with the participation of homeowner associations, but they may not have the same boundaries.
  • HOA membership is mandatory based on property ownership rules such as deed restrictions, whereas neighborhood association memberships are informal or voluntary.
  • HOA often own common property and maintain them including parks, roads, swimming pools, and recreational facilities, while neighborhood associations focus on community events, social activities, and general advocacy.
  • Neighborhood associations that are recognized by the city serve a unique purpose compared to homeowners associations. Generally, an HOA exists to supervise convents for development or regulate common areas.
  • Neighborhood associations gather residents from the area in order to discuss community goals with officers. In addition, they also function as a way to relay information from the city to the area residents and communities. With proper management, neighborhood associations and homeowners associations can co-exist successfully.

Bottom Line

Associations or groups that organize activities open an opportunity for better communication between property owners, neighborhoods, and the city government. With increased communication, these two organizations can serve as a good example and resource for community opportunities as well as upcoming meetings and social events.

Residents who are members of these communities can participate at different levels of interest with the City Council. The camaraderie and willingness to create a better living space for everyone make HOA and neighborhood associations vital in neighborhoods and other areas.