A homeowners' association is a legal entity usually created by a real estate developer for the purpose of developing, managing and selling a development of homes. The developer normally transfers ownership of the association to the homeowners after selling off a predetermined number of lots. Most homeowners' associations are non-profit corporations, and are subject to state statutes that govern non-profit corporations and homeowners' associations.
Homeowner associations can compel homeowners to pay a share of common expenses, usually per-unit or based on square footage. These expenses generally arise from common property, which varies dramatically depending on the type of association. Some associations are almost like, quite like towns, with private roads, services, utilities, community buildings, pools, and even schools.
