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HOAs have become increasingly common, particularly in new constructions. Rooted in the desire of local governments to offload responsibilities like maintenance and community services, these associations are seen as a value-add for homeowners.
HOAs are run by boards of volunteer property owners and often hire for-profit management companies for day-to-day operations.
The Inostroza family’s experience in Newnan, Georgia, exemplifies the darker side of HOAs. Their annual dues seemed manageable at $200, but they soon found themselves saddled with a previous owner’s unpaid fines and escalating late fees.
HOAs often justify their existence and fees by claiming to protect and enhance property values. Studies show mixed results: some find HOA homes worth more, while others see no significant difference.