How HOAs Have Evolved Over The Years

HOAs have evolved over the years and there has been a clear evolutionary process involved in getting the HOA to the group they are today. Homeowners have had to juggle multiple things when they have gotten involved with an HOA. Being part of an HOA allows property owners to manage their collective interests.

HOAs Have Evolved and Experimented

Several aspects of HOA’s operational objectives and concerns have been gradually changing.


HOAs have faced more regulations over the years. In general, HOAs are corporate entities and must fulfill basic reporting requirements to maintain their organizational status. Some jurisdictions have statutory laws regulating their self-governance and financial reporting. These laws reinforce the fiduciary relationship between associations and their memberships.


In recent years, costly and high-profile legal disputes involving overreaching regulations have prompted HOAs to rethink the enforceability of covenants which could compromise owners’ property interests. Specific rules may also violate housing protections and amount to discrimination. To avoid liability, HOAs must be conscientious about changing and enforcing laws.


It has become the norm for HOAs to play a vital role in selling units. Approval from an association is a typical precondition to sales. 

Buyers and sellers rely on information they obtain from the association about dues, assessments, and encumbrances. Also, many lenders request associations’ financial statements and HOA insurance coverages before extending financing to homebuyers.   


Many popular new features that HOAs include aim to provide memberships with convenient ways to stay in touch. Mass communications over email give residents important notifications about projects and emergency preparedness. 

Discussion forums on social media platforms can strengthen the community dynamic that associations want to foster. They can also create more open discord. Nonetheless, many HOAs opt to set up groups, reasoning that someone else will if they do not, and the association should retain administrator credentials. 

Financial Management

Online account management allows property owners to check their outstanding maintenance dues or assessment fees. HOAs are also using payment processing systems to receive payments online. These features can make it easier for associations to organize payment information, making them more vulnerable to data breaches. Consequently, cyber liability insurance is a more common component of HOA insurance packages.


Some associations have made membership more appealing by offering more amenities. Enhanced maintenance services and shared amenities such as gyms and bark parks make it advantageous to buy a property in an HOA. Expanding amenities can entail taking on more risk and may merit modifications to an HOA’s indorsements.

Ultimately, HOAs have to manage risk with the utmost care. While striving to improve the quality of their services, they need to be prudent about potential liability and loss. 

About Kevin Davis Insurance Services

For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.