An HOA is a group of homeowners in a specific subdivision or community that makes and enforces the rules for the properties and the residences. These groups are elected to enforce and oversee the community. Those who purchase a home that is a part of an HOA automatically become members and are required to pay their dues. You have the right to be able to read the HOA rules and regulations before purchasing the home.
I have devised a pro and con list for the benefits and drawbacks.
Pros
Provide Amenities Within Your Neighborhood
A lot of HOAs provide great amenities to the neighborhood. Such as pools, trash removal, snow plowing, a clubhouse, parks, and walking trails. I would read through the amenities thoroughly and make sure that they interest you and are worth the money you are putting in.
Can Reduce Your Responsibilities
A big responsibility in owning a home is the maintenance, it takes a lot to up-keep the home. HOAs can provide services such as shoveling snow, redoing gravel roads, and cutting down trees. They have the potential to lighten the load of the work.
Help Keep Up Appearances
HOAs have certain laws that you have to abide by. If you like the look of a clean and connected neighborhood, then it could be a good choice for you to be in one.
Get To Know Your Neighbors
Houses in a neighborhood can be close together, because they want to maximize the area. They build a community and provide activities for everyone in the neighborhood to contribute to
Can Increase The Value Of Your Home
HOAs can increase the value of your home automatically by abiding by their rules. Most require you to up keep up the yards and specific colors to paint your home, which will add great curb appeal. They are constantly building new homes, upgrading older homes, and recreational activities which will add great value to your home without you doing anything!
Help Resolve Disputes
If you and your neighbor are having issues such as parking or trash disputes. The association can get involved and listen to the issue to design a plan and/or solution to the problem and potential further issues.
Cons
They Can Foreclose On Your Home
This can change from state to state, some HOAs have the power to foreclose on your home and can place a lien on a property, if they don't pay their dues. If you are a potential buyer you do have the right to read all the rules of the HOA and see their history of fees, that way you can know what to expect.
Can Push An Assessment On Your Home
If the HOA doesn't have cash reserves they can force an assessment on your home to come up with money. This is important to know because over half of HOAs are currently underfunded.
Renters Are Often Ignored
Although, some HOAs will allow renters to take part in meetings or use amenities, others don't consider renters to have a say or take part, because they are not the homeowners. Therefore renters might have to try harder to voice their opinion and appeal to property managers. They can also restrict you from renting your house out as well.
HOA Dues Can Be Expensive 
Depending on the type you will have to pay either annual or monthly fees. They will use these fees to fund their community projects, maintenance, and build a reserve for unforeseen circumstances for the neighborhood. The fees can range anything from $200-1,000 a month.
You Won't Have A say In Everything About Your Home
One of the great benefits of owning your home over renting, is getting the chance to change and add whatever you would like to your home. An HOA could potentially take that right away from you. They can decide if you can build an addition to your home, if you can build a fence, what colors you can paint your home, or how many trees you can have in your yard. You have to strictly follow these rules.
Could Have A Poor HOA Or A Rogue One
There is no say in how your HOA will act until you've lived there and experienced them. There is always a chance you could have a poor group of people that aren't looking for the best interest of the residence there. If you think there is potential for harassment or bias, you are more than welcome to bring in a third party to stand with you and/or call the cops.
An HOA is definitely not for everyone. It can potentially have the effect of making your life more enjoyable or it can just be money out of the pot. Some things will work with your lifestyle well, or you'll learn you won't take advantage of the amenities an HOA can offer for the neighborhood. They can be very particular though, all the way down to the color you can paint your door.
