Living in a Michigan homeowners association (HOA) can come with its pros and cons. Debates over imposed rules, violation notices and fines can quickly become the hot topic of a neighborhood.

In Michigan, about 1.4 million people were living in communities with homeowner associations in 2023, according to the Foundation for Community Association Research. In the U.S., about 30% of the population lives under an HOA.

If you’re in the process of buying a home, it’s important to know the details of your HOA.

Being in an HOA typically involves adhering to community rules and regulations, and paying regular dues to help maintain a neighborhood’s appearance and potentially increase property values.

What does living in a neighborhood run by an HOA entail? Here’s what to know:

What is an HOA?

According to USA TODAY, a homeowners association is a private organization that governs properties within a particular community or subdivision. In Michigan, HOAs hold governing documents that generally include Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions and other rules and regulations.

Under an HOA, rules are established to govern the use of common areas. It will also hold homeowners accountable for the upkeep of their home and landscaping (some HOAs may cover lawn maintenance).

Board members are selected by residents to manage the HOA and enforce rules and bylaws.

Is HOA membership mandatory?

If you move into a neighborhood that has an HOA, membership is typically mandatory. This means you will need to pay annual or monthly dues for administrative expenses and common area maintenance.

Dues can vary dramatically, depending on several factors, including location and amenities offered.

According to the U.S. census, the average HOA fee in 2021 was $191 a month.

When you buy a house in a community governed by a mandatory HOA, you automatically become a dues-owing HOA member.

You are typically a member of the HOA for as long as you own the home.

What powers do HOAs have in Michigan?

In Michigan, HOAs have the power to:

If you aren’t sure about your HOA’s rules and restrictions, governing documents are public record and are provided by the entity to individual homeowners, often when buyers are closing on the home.

What common rules do HOAs enforce?

• Rules regarding home and yard appearance.

• Property modification restrictions.

• Restrictions on noise levels and outdoor activities.

• Pet regulations.

• Parking and vehicle storage guidelines.

• Commercial activity restrictions.

• Renting regulations and restrictions.

• Decorations, including flags.

Homeowners associations can impose as many or as few rules as desired, as long as they don’t violate any state or federal laws.

Can an HOA impose fines?

In many cases, yes. If the governing documents of an HOA allow fines to be levied, then fines can be imposed for violations. If violations aren’t remedied within a certain time frame, further fines can often be issued.

Can an HOA take over your home?

An HOA’s governing documents will define whether the board can take steps to take over your home and possibly foreclose on it.

According to Michigan’s Condominium Act, condos that are governed by an HOA can be foreclosed on for unpaid fines and liens.

Can I sell my home with unpaid HOA fees?

No. Any unpaid HOA fees must be paid off before the sale of a home is final. If unpaid debts aren’t resolved before closing on the home, outstanding fees can be withheld from the proceeds of the sale and paid to the HOA.

How do I join my HOA board?

If you’re ready to jump in and make a difference in your subdivision, consider joining your HOA’s board. In Michigan, every board must have at least three board members. Traditionally, the four main positions you’ll find are the president, vice president, secretary, and treasurer.

Board members are usually elected by members of the community at the annual meeting or appointed by the existing board. If you are interested in joining your board, it’s important to familiarize yourself with the bylaws, rules and regulations of the community.

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This article originally appeared on Detroit Free Press: HOAs in Michigan: Pros and cons, 7 key things to know