There Are Distinct Differences Between HOAs and COAs

If you are searching for a new home, you may run into terms like HOA or COA on a regular basis as you search for the right house style in the right area to fit your family’s needs. Many people assume the terms mean the same thing, can be used interchangeably, and are two different expressions signifying a group of the same rules for different housing areas, but that is not the case. Here are the basics of what makes them distinct.

Administration Differences

What is the difference between HOA and Condo Association terms? Most often, it is all about the over-site of single-family homes versus multi-family units. There is also a difference in the responsibility of the association over communal areas. Both maintain common zones, but the COA elects a board of directors from those members to administer the rules – that is why COA insurance can be important liability coverage. Source:

Cost Differences

Maintaining common areas comes with a cost in the COA and so do those treasured condo parking places. For the HOA, it is all about architectural guidelines, paint colors, and keeping the area pristine. COA fees are often higher than HOA costs simply because there are more common spaces surrounding condos.
Knowing the costs associated with HOAs or COAs can help you to better understand your monthly home payments. That means you can more easily stay within your budget.