Everything I Tell Clients About Arizona HOAs Before They Buy

Most West Valley Buyers Are Buying Into an HOA

In Surprise, Goodyear, and Peoria, the overwhelming majority of homes built after 1990 are in HOA communities. If you're buying in the West Valley, you're almost certainly buying into one — and you should understand exactly what that means before you close.

What an HOA Is (and What It Isn't)

An HOA is a private organization that governs a community through recorded rules called CC&Rs (Covenants, Conditions & Restrictions). It is not a government entity — but it has real enforcement authority over your property. It can levy fines, place liens, and in extreme cases initiate foreclosure proceedings for unpaid fees.

HOAs are managed by boards of elected homeowners, often with a professional management company handling day-to-day operations. Quality varies enormously. I've worked in communities with extremely well-run HOAs and others where poor financial management created serious problems for owners.

What Your HOA Fees Actually Pay For

This varies widely, but typically covers:

• Common area maintenance (landscaping, entry monuments, parks, trails)
• Community amenities (pool, fitness center, pickleball, recreation center)
• Professional management company fees
• Reserve fund contributions (for future capital improvements)

Fees range from $50/month in minimal-amenity neighborhoods to $400+/month in resort-style communities like Vistancia or Estrella Mountain Ranch. Know what you're getting for the money.

The CC&Rs: Read Them

I know nobody wants to read a 60-page legal document. Read the CC&Rs anyway, or have your attorney review them. They govern:

• Exterior paint colors (pre-approved palettes only in most communities)
• Vehicle restrictions (no visible RVs, boats, or commercial vehicles in most cases)
• Fence height and material
• Landscaping standards and maintenance requirements
• Short-term rental policies — critical if you have any STR intentions. Many West Valley HOAs prohibit Airbnb or require minimum lease terms of 30–90 days.

In Arizona, you have a 5-day right to review HOA documents after they're delivered during escrow. This is a contractual cancellation right — use it.

Red Flags I Watch For

Before recommending a property to a buyer, I look at these HOA indicators:

• Reserve fund percent funded. Less than 70% funded is a yellow flag; less than 50% is a red flag. Underfunded reserves often lead to special assessments — charges levied against all owners when major repairs are needed that the reserve can't cover.
• Pending litigation. An HOA in active litigation is a complication for financing and for your future.
• Recent special assessments. This is history; it can also signal ongoing financial management problems.
• Recent fee increases. A history of steady increases may continue.

Ask me about any HOA before you fall in love with a property. I'll pull the documents and give you my read on the financial health and culture of the community.