A property owner's association (POA) is often used as a synonym for a Homeowners’ Association (HOA) and Condo Owner’s Association (COA). Although both HOAs are also POAs, not all POAs are HOAs. How is that for clarity?
Many states use POA as the legal inclusive term for all types of owner’s associations that are not condos. But the term, POA, is most commonly used when referring to a master association or large tracts of land and building owners within a community.
This can be a large or small, rural or urban community encompassing planned communities, one or more homeowner associations, and commercial properties.
Commercial POA
Many business parks and buildings operate as commercial POAs, sometimes referred to as office condos as well. Often, the legal ownership structure is different for office condos versus commercial POAs but the name office condo used conversationally for both.
The association maintains the common areas such as the parking lots, irrigation, landscaping, shared roofs, mail facilities, and any other common areas the association has for the benefit of the property owners.
Just like in an HOA or COA, the POA and its management company take an active role in keeping the area well-maintained and up-to-date on things such as legal requirements, energy-saving options, and more.
When Are POA Fees Collected?
It depends on the association but can be collected annually, quarterly or monthly, just like an HOA.
The fees cover the costs of maintaining common areas, such as swimming pools, parks, parking lots or landscaping, just whichever amenities the POA has to offer. They may also help to pay for security guards, property taxes on the common areas and other services.
In some cases, POA fees may be used to fund special projects, such as building a new clubhouse or repaving the roads.
Property owners who are delinquent on their dues may be charged a late fee, and they may also lose access to certain amenities. For example, depending on the state you live in, you might not be able to use the swimming pool or attend community events until your fees are paid.
Benefits of a POA
Just like in an HOA or Condo, POA members want to make the best use of the land in their community and use governing documents and a Board of Directors to do that.
Similar to an HOA, POAs will have an annual budget to help property owners understand what the association is specifically planning to spend that year on which projects, the budget is a great way to understand an organization’s priorities. They will also have an Annual Meeting to stay up to date with the organization’s plans.
Finally, the POA deed restrictions protect property values and that the community continues to operate in accordance with the vision set out so that buyers and property owners know what to expect as the community grows and ages.
If you are looking for an expert management company to help your POA, contact us today.
