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Some homes have a homeowner’s association that serves the community and helps keep the neighborhood looking great. Others don’t, but you can get together with your neighbors to change that. If enough people are interested, you can meet with a lawyer to go over local laws, and then draft a plan. The plan should include the rules, the budget, and a name. Follow these steps to create an HOA in your neighborhood.

  1. Talk to Neighbors

First, talk to people in your community. Find out how they feel about creating an HOA. You will need the majority to support your endeavor. While you are gathering information, find out what people would want from the HOA. Different states have different laws and regulations about HOAs, so you might need to get everyone in the neighborhood to agree, or you might need just a majority.

  1. Decide Whether the HOA Should Have Mandatory Membership

If most people are excited about the idea of an HOA, you won’t have nearly as much trouble getting it started. However, you may find that interest varies. In this case, you should consider a voluntary participation HOA model. A mandatory HOA would be able to do more in terms of beautifying the neighborhood, but if it is voluntary, those who opt out would still benefit. Look at all your options and whether it makes sense to have a voluntary HOA.

  1. Hire an Attorney

There are laws that govern HOAs in every state. You should do some research on your own, and then hire an attorney. The attorney has access to deeds and can help you draw up the legal agreements you will need.

  1. Plan How it Will Run

It is important to write out how you plan to run the HOA; this plan is similar to a business plan. Come up with committees, rules, and more to determine the structure of the organization. Make sure that the rules are transparent and easy to understand.

  1. Set a Budget

When you set the budget, you will also determine the HOA fees. Make sure that it is affordable and reasonable. If you have a good budget, it will prevent the HOA fees from going up each year. You need to know what the dues are and when they will be paid.

  1. Choose a Name and Register it

Finally, you can choose your name and create your governing documents. elect your board members and set it up as a non-profit or an LLC.