The abbreviation HOA has the following decoding: partnership of homeowners. The formation and activities of this legal entity are regulated in the Housing Code of the Russian Federation.
So what is HOA? This is a community of people - owners of premises located in one house, consisting of many apartments. The purpose of this association is to manage the entire complex of real estate, including the house itself, as well as a plot of land and other objects. When disclosing the concept of what HOA, you need to know the legal aspects of this legal entity, since it is such from the moment it is registered with state bodies.
Such an association, like all legal entities, has its own bank accounts and a seal. The HOA also includes tax accounting, and the exercise of the right to enter into various transactions, and the right to be a defendant and plaintiff in court. Owners of premises in one house will be able to register only one HOA. At the same time, the question of its formation is decided at a general meeting of the owners of the building’s premises and is adopted by a vote of “more” than 50% of the owners.
One partnership for more than one house can be created in the following cases:
1. If in several houses the premises belong to more than two owners and are located on the same plot of land, or on neighboring ones, on which the engineering and technical support networks are located.
2. There are several houses built nearby, belonging to the same family, with or without plots of land on common land or neighboring plots.
The management body of the HOA is represented by members of the partnership, who assemble the general meeting in the manner prescribed by the charter.
HOA Responsibilities
According to Article 138 of the LC RF, HOAs have certain functions. We clarified the issue of what HOA is, and now we will clarify the scope of its activities:
• conclusion of contracts for the maintenance and repair of property, which is common, with the owners of the premises of the house who are not in partnership;
• Fulfillment of contractual obligations in the manner prescribed by law;
• ensuring the proper technical and sanitary condition of the property of the house, which is common;
• ensuring the fulfillment by all owners of premises of the duties of maintaining and repairing property that is common, according to their shares in the property right;
• ensuring the observance of the rights and interests of the owners of the premises of the house when establishing the order of ownership, terms of use of property, which is common;
• taking measures to prevent or terminate the actions of third parties that impede the exercise of the rights of owners of premises to use common property;
• representation of interests and protection of the rights of owners of the premises of a house, including in relations with third parties.
Benefits of HOA
The creation of an HOA has certain positive aspects: it allows homeowners to exercise the most complete exercise of their rights to manage and dispose of common property. It also provides an opportunity to make the scheme of income and expenditure of funds levied by owners and tenants of premises in this house more transparent, and is conducive to attracting investment and improving living conditions.
If there are less than 20 apartments in the house where the creation of the HOA is planned, then the registration of the partnership will be unprofitable, since the owners of the premises will have to pay for the work of the chairman, accountant and other employees. Therefore, HOAs are best created in multi-apartment buildings, where small expenses do not matter much. The opinion of many experts is such that HOA, contributing to the creation of a higher level of organization of owners and control of performers, claims to be the most productive form of self-government in the housing sector.
Knowing what HOA is, and in what cases it is beneficial to create it, you can effectively manage your home.