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What’s the Difference Between an HOA vs. COA vs. POA?

Everyday someone is moving into a community that has an organization overseeing various aspects of the neighborhood. And they come with letters. Sometimes it is an HOA. Other times it is a POA or COA. So what are all of these? What is the difference between an HOA vs. POA vs. COA… and how does it affect where you call home?

Coming into a new rental property, you probably have a lot of questions. When we take care of rental property management in Baltimore and other cities, we always strive to be transparent and upfront on what these are and how they interact with your daily living. There are many benefits to the various types of associations in a neighborhood. But it’s hard to know them if you don’t fully understand what they are. Let’s dive into the various associations that you might be a part of when owning a home.

House models around HOA cubic blocks on a reflective desk.What is an HOA?

A homeowners association (HOA) is an organization in a planned community or another type of group housing development that creates and enforces its own local rules and regulations for the houses and residents in that community. These HOAs are run by a board of directors and usually collect monthly or annual fees as a means to cover the costs of common areas, amenities, and general maintenance of the community.

The people and families who buy property within that specific area – it could be a subdivision of housing or a particular building – fall into the jurisdiction of the HOA. So when purchasing the home, they are automatically members. The regulations and dues for one HOA vs another HOA can vary a lot. Ultimately there are many pros and cons of living in an HOA, as there are any other types of community organization. They are also regulated in various ways.

What is a POA?

A property owners association or POA is the word used for an organization that manages and governs a community or residential area. So in other words, it is very similar to an HOA. But their scope and what they focus on are different, with foundational different purposes. They typically govern the shared spaces more than individual properties. They also concern themselves less with the style of the individual properties.

The primary purpose of POAs is to make sure that the overall maintenance of common areas is intact, as well as shared amenities These associations often charge property owners reoccurring fees, known as assessments, which have similarities to HOA fees but are not the exact same thing.

What is a COA?

A condominium owner’s association (COA) is another one that is very similar to an HOA. However, they aren’t 100% the same! The difference: a COA is made up of condos. But that in itself means there are a few differences between the others.

In an HOA, residents own their property but they don’t own or maintain common areas such as shared outdoor spaces, pools, or gyms. In a COA owners own their condo units and generally own a percentage of shared property. Similarly, they pay a fee to have those maintained, but with a COA they own a part of them. The COA doesn’t own anything, but it makes sure that the areas and items that serve multiple units are cared for.

Other than the ownership component, COAs and HOAs are very similar. Like an HOA, an elected board of volunteers operates the COA on behalf of all owners. Both are non-profits with regulations and governing documents that dictate the day-to-day operations, as well as how they are funded.

Single family homes on a well-manicured street.

Key Differences: HOA vs POA vs COA

So what are the differences between an HOA vs. POA vs. COA? How do we make sense of it? After all, all are types of community associations that manage and regulate residential communities. They differ both in their scope and specific responsibilities.

HOAs are often found in single-family home subdivisions. Many are in the suburbs. HOAs are not only responsible for maintaining and managing common areas and amenities, they also enforce community rules and even organize community events in various ways. They collect fees from homeowners to fund these activities and make sure that the neighborhood maintains a certain standard of appearance.

POAs can encompass a more variety of property types, including residential, commercial, and mixed-use developments. POAs manage not only common areas and amenities but also have a say in the overall development and land use within the community. But they do not usually govern community rules or organize events in the same way that HOAs often do. They usually are more involved with overseeing commercial properties, parks, and other public spaces but less involved with specific housing rules or regulations of the homeowners.

COAs are specific to condo communities. So. they do not encompass any of the other housing types that the others represent. They manage the shared spaces within a condo building and are responsible for the maintenance and repair of them. They collect fees similar to the other organization types. But, unlike HOAs and POAs, COAs deal exclusively with the interior and exterior maintenance of a condo property.

How Property Management Can Help

While you are weighing the pros and cons of living in an HOA vs. POA vs. COA, it’s important to consider all aspects of them. Additionally, it’s crucial to find property that’s managed properly. Poor management of your own investment can really make or break your experience, HOA or not.

That’s why property owners in Baltimore choose Bay Property Management Group for their needs! Our team of experienced professionals helps local homeowners collect dues, plan finances, perform maintenance, and much more. If you need help overseeing your property management in Baltimore, Boston, Atlanta, Virginia, and elsewhere, consider BMG!