What to Know About HOAs in New Construction

All About New Construction Community HOAs

Homeowners Associations (HOAs) are a common part of new construction neighborhoods, especially in planned communities where maintaining a cohesive look and shared amenities is a priority. For potential buyers, it's important to understand how HOAs operate—who runs them, what the dues cover, and how they might affect your homeownership experience.

If you're considering a new home in Oregon or Washington, this guide will walk you through the essentials of HOA-managed communities at Holt Homes.

 

. 

What is an HOA?

An HOA (Homeowners Association) is an organization established by the developer of a new construction community to manage shared responsibilities such as landscaping, signage, parks, and amenity upkeep. In Holt Homes communities, these HOAs are typically managed by a professional third-party company that the developer selects to oversee day-to-day operations and enforce community standards.

While the HOA is put in place to support the long-term quality and value of the neighborhood, it’s important to know that it operates as a business, not a nonprofit, and is funded by mandatory homeowner dues. Once the community is fully built and occupied, homeowners may have the opportunity to form a resident-led board or vote to maintain the current management structure—depending on the governing documents and legal framework of the community.

Neighborhood HOA vs. Master HOA

In larger master-planned communities with multiple builders, you may see:

• A master HOA that oversees amenities and rules for the entire community.
• Sub-HOAs or neighborhood HOAs specific to sections built by each builder, with potentially different fees, amenities, or management companies.

Ask your Holt Homes representative which type of HOA your potential home falls under.

Community Association vs. HOA: What’s the Difference?

While they may sound similar, a Community Association and an HOA are not the same:

• A Community Association is typically a voluntary group of residents who organize community-building efforts, events, or advocacy—not a governing body. They have no legal authority over your property.
• An HOA, however, is an official entity with the legal authority to enforce rules and collect dues, typically managed by a professional firm under direction from the developer (at least until turnover to homeowners, if permitted).

9 Things to Know About HOAs in New Construction

1. HOAs Enforce Community Standards
   They outline rules for home appearance, landscaping, and changes to exterior features, ensuring a consistent neighborhood look.
2. They Help Protect Property Values
   By maintaining curb appeal and shared amenities, HOAs contribute to long-term value.
3. They Collect Mandatory Dues
   Homeowners are required to pay monthly, quarterly, or annual dues to fund the HOA’s services.
4. What Fees Typically Cover
   Landscaping, maintenance of parks and amenities, and sometimes security or waste services.
5. Rules and Regulations Vary
   Each HOA sets its own policies—common rules address parking, garbage bin placement, pet limits, and architectural modifications.
6. Professionally Managed by a Company
   A third-party HOA company hired by the developer typically handles enforcement, maintenance coordination, and due collection.
7. Includes Access to Shared Amenities
   Many HOAs maintain pools, trails, parks, or clubhouses—benefits that vary by community.
8. Violations May Incur Fines
   Non-compliance can result in warnings and monetary penalties.
9. Homeowners May Eventually Take Over Governance
   Once the community is complete, homeowners may vote to form a resident-run board—depending on governing documents.

How HOA Fees Work in New Construction Communities

Fees vary by community and are based on the services and amenities provided. Newer communities with modern infrastructure may have fewer immediate maintenance needs, but costs can increase over time.

HOA dues are typically billed:

• Monthly (most common)
• Quarterly
• Annually

Buyers should also plan for one-time fees at closing—often referred to as a Capital Contribution or Set-Up Fee—to fund reserves and startup costs.

What Do HOA Fees Typically Cover?

In Holt Homes neighborhoods, HOA fees may go toward:

• Common Area Maintenance – Sidewalks, parks, signage, trails
• Community Landscaping – Front entries, medians, open green spaces
• Security Features – Lighting, gates, or patrols (varies by location)
• Amenity Upkeep – Clubhouse, pool, gym, or event spaces

Ask your Holt Homes representative for a community-specific list of inclusions.

HOA Fees and Mortgage Approval

Lenders factor HOA dues into your monthly expenses when calculating your debt-to-income ratio. This means that higher dues could limit your borrowing capacity—even if your base mortgage payment is affordable. Be sure to consider this when budgeting.

How to Review HOA Documents Before You Buy

Before closing, you’ll have access to a disclosure package from the HOA management company or the developer. This may include:

• CC&Rs (Covenants, Conditions & Restrictions)
• Fee schedules
• Reserve fund details
• Operating budget
• Meeting minutes
• Insurance policy summaries

Ask your Holt Homes representative to help you request these documents—or direct you to where they’re hosted online.

Smart Questions to Ask

Before buying into a community with an HOA, consider asking:

• What are the regular dues?
• Are there any upcoming special assessments?
• Is the HOA professionally managed or resident-led?
• Are there restrictions on home use, rentals, or modifications?
• How much is in the reserve fund?
• What’s the HOA’s litigation history, if any?
• Is turnover to a homeowner board expected—and when?

Pros and Cons of HOA Living

Pros

• Maintains a polished, cohesive look
• Shared amenities maintained for you
• Higher curb appeal may protect property values
• Security measures may lower insurance premiums

Cons

• Ongoing dues in addition to mortgage and taxes
• Limitations on personalizing your home’s exterior
• Homeowners may disagree with board decisions or rule enforcement

Is an HOA Right for You?

For many, HOA living offers ease and consistency. For others, the restrictions or extra costs may not align with their lifestyle. The key is knowing what’s involved, reviewing the documents, and asking good questions before you sign.

At Holt Homes, we’re committed to transparency. We’re here to help you make an informed decision about your home—and that includes understanding the ins and outs of any HOA.

Ready to learn more? Schedule a tour, contact a sales representative, or explore communities near you.

 

*All selections subject to change depending on availability