hile Homeowner’s Associations, or HOAs, have traditionally been organized somewhat upon the same basis as that of a New England town meeting, the rise in large scale developments as well as increasing legal challenges to HOA policies and enforcement actions have led to the creation of a more formalized and professionalized governmental structure for many newer HOAs.
The reason for this is simply that any mistakes or abuse by the enforcement arm of an HOA can lead to significant legal costs and damages. These in turn get divvied up between all of the homeowners in the neighborhood under control.
By farming these functions out to one of the many professional HOA management companies, an HOA gets some arms-length legal protection from their bonded agent. It also smooths relations between neighbors who, in the past, found themselves on opposite sides of an issue but remained compelled to live next door to each other.