If you’re a board member or property owner involved in your community’s governance, you may have come across the terms HOA and POA. Sometimes, they’re used interchangeably. Other times, they seem to refer to completely different things.
Understanding the difference between an HOA (Homeowners Association) and a POA (Property Owners Association) is essential for ensuring legal compliance, effective decision-making, and smooth community operations.
This blog breaks down each type of association, how they differ, why this matters for you as a board member, and how a knowledgeable management company can help you.
Let’s start with the basics.
An HOA, or Homeowners Association, is a nonprofit organization established by a residential community’s developer. Once the community is built, the HOA is turned over to the homeowners, who then elect a board to govern the association.
HOA responsibilities consist of managing the shared interests of a residential neighborhood.
This typically includes:
These responsibilities help protect property values and maintain a high standard of living for everyone in the community.
HOA boards are made up of elected homeowners who volunteer their time to help govern the community.
Typical HOA roles include:
These HOA board members are responsible for making decisions on behalf of the community and ensuring that the association operates within its legal and financial obligations.
A POA, or Property Owners Association, may sound similar to an HOA, but the structure and scope can be quite different.
A POA is a broader type of community association that can govern not only residential properties but also commercial, mixed-use, or undeveloped land. POAs may cover a wider geographic area or span different property types that don’t fit neatly into the typical residential HOA model.
In some regions, “POA” is simply a regional synonym for HOA, but in many cases, a POA has a distinct legal structure.
POAs often include:
This means a POA might govern more diverse properties, often with different sets of rules depending on the land use.
Unlike HOAs, which usually operate under a single set of CC&Rs focused on residential living, POAs may have more complex governance structures. They might be governed by separate sets of rules for different zones within the association.
Some POAs are set up with more flexible rules to encourage business development, while others mirror the structure of a traditional HOA but with added responsibilities.
At first glance, HOAs and POAs might appear similar, but there are important differences in how they operate.
HOAs typically govern residential communities. They deal with homes, townhomes, or condominiums and focus on maintaining residential standards.
POAs can include a mix of property types, including commercial or undeveloped land. This broader scope often means more complex rule enforcement and property use coordination.
HOAs are usually composed exclusively of homeowners. If you own a home in the community, you’re automatically a member and must pay dues.
POAs may include all property owners, whether they live on the property or not. That could mean land developers, commercial building owners, and residential homeowners are all members, each with potentially different rights and obligations.
HOAs are usually governed by a single set of CC&Rs, enforced by the board, and supported by state HOA laws.
Depending on the property type, POAs might be governed by multiple documents. Their powers and responsibilities could be more extensive (or, in some cases, less clear) than those of a typical HOA. This makes legal compliance more challenging without expert support.
To help clear things up, let’s walk through some of the most common myths and misconceptions we hear from board members and property owners.
“POA and HOA mean the same thing.”
Not always. While they can function similarly, the terms aren’t interchangeable in every case. Always check your governing documents.
“POAs only apply to rural or undeveloped land.”
Many POAs include a mix of property types and can be found in suburban and urban areas as well.
“Only HOAs enforce rules.”
POAs also enforce covenants and rules, though the nature of those rules may vary based on property type and jurisdiction.
Understanding these differences helps avoid confusion and keeps your board aligned on governance responsibilities.
If you’re serving on a board (or thinking about volunteering), knowing whether your association is an HOA or POA can affect nearly every part of your role.
HOAs and POAs may have different legal requirements under state law. Misunderstanding your responsibilities could lead to legal risk, inconsistent enforcement, or community disputes.
Budgets, dues, and project planning often differ depending on the scope of your association. A POA that includes commercial properties might handle reserves, maintenance, and assessments differently than a purely residential HOA.
Understanding these dynamics is crucial for effective financial management.
Residents often assume their board “just runs the neighborhood,” without realizing the limits of the board’s power or the type of association in place.
Knowing the difference allows you as a board member to answer questions confidently, resolve disputes, and guide your community toward productive solutions.
Whether amending governing documents or overseeing capital improvement projects, your association's legal structure determines how decisions are made and who has the authority to make them.
A clear understanding prevents board overreach (or underperformance) and supports better community outcomes.
Serving on a board comes with big responsibilities, and navigating your community's governance structure can be overwhelming.
That's where Hignell HOA comes in.
With decades of experience managing residential communities across Northern California, we specialize in helping HOA board members make sense of their legal obligations, financial oversight, and day-to-day responsibilities.
We don’t just help you manage your association — we partner with you to build thriving communities. Our team is well-versed in HOA structure and can provide the clarity you need to operate confidently and compliantly.
Let’s make governance easier. Contact us today to speak with a dedicated HOA specialist who understands the complexities of your association.
