Homeowner Associations

Homeowner Associations

Brief Excerpt from Industry Overview Chapter:

Organizations in this industry create and enforce restrictions on what homeowners can do with their property to maintain property values and the look and feel of a particular community. No major organizations dominate the industry.

COMPETITIVE LANDSCAPE

Demand is driven by construction of communities in which homeowners want to sustain property values through covenants, conditions, and restrictions. The viability of individual associations depends on efficient fee collections and cost controls. Larger associations may enjoy some economies of scale in contracting for services.

PRODUCTS, OPERATIONS & TECHNOLOGY

Homeowner associations (HOAs), which include condominium and co-op associations, provide services to homeowner members and enforce the covenants, conditions, and restrictions that members agree to when they buy a home in a condominium complex or single-family housing development. Restrictions may govern such things as home additions or reconstruction, fencing, landscaping, signs, pet ownership, and commercial use of property. Some associations have restrictions on home rental or resale. HOAs get the majority of their revenue sources from memberships which account for 40% of the industry revenue, followed by condominium and homeowner's association (35%), and program service revenues (about 15%). Other services include business and professional association membership, trading securities and commodity contracts, as well as private contributions, gifts, and grants.