When managing property in Texas, you might encounter organizations such as Homeowners’ Associations (HOAs) and Property Owners’ Associations (POAs). While they are similar in some ways, they also have apparent differences that can affect your life as a property owner.
What is a Homeowners Association?
An HOA is a group that runs residential communities. You become a member when you live in an area with an HOA. HOAs ensure people follow community rules and care for shared areas like parks, pools and gyms. They also set rules about how homes should look, like yard care and house paint colors.
What is a Property Owners Association?
On the other hand, a POA can cover more types of property, including homes, businesses and recreational areas. POAs work to help and improve the local real estate market. Unlike HOAs, POAs often have fewer strict rules and focus more on making property worth more and helping the community grow.
Similarities between HOA and POA
Both HOAs and POAs share several main tasks:
- Enforcement of covenants, conditions, and restrictions (CC&Rs): Both groups enforce rules about the appearance and usage of property.
- Maintenance of common areas: They care for shared spaces like parks and pools.
- Collection of assessments: Both collect fees from property owners to pay for community upkeep and services.
These shared tasks help keep communities attractive and well-kept.
Differences between HOA and POA
Despite their similarities, HOAs and POAs have key differences:
- Size and scope: HOAs usually run single-family homes or condominiums in one area, while POAs may cover more significant areas with different property types.
- Legal structure: Deed restrictions set up HOAs, while state laws or legal documents like declarations of covenants can establish POAs.
Understanding these differences can help you know each group’s rules and benefits better.
Texas laws governing HOAs and POAs
In Texas, both HOAs and POAs must follow state laws about their operations. For example, Texas Property Code Section 209.0094 says HOAs must send multiple notices before filing an assessment lien. This helps keep transparency and fairness in community finances.
Why it is essential to know the difference
Knowing how HOAs and POAs differ is vital for property owners like you. It helps you understand your rights and duties, what your HOA or POA can do and what rules it must follow. This knowledge can help your HOA/POA avoid problems and effectively inform the group about managing its property.