Pros and Cons of Choosing an HOA for a Housing Development

 Posted on January 22, 2026 in Condominium & Homeowner Association Law

If you are planning a housing development in Illinois, one of the most important decisions you will make is whether to establish a homeowners association. An HOA can provide structure, protect property values, and create a cohesive community. But it also brings costs, regulations, and potential conflicts that developers and residents must manage carefully.

Our Cook County condominium and HOA law attorneys offer free consultations and can guide you through the process of establishing and managing a homeowners association. With over 150 years of combined legal experience, our firm helps HOAs operate effectively while minimizing legal risks.

What Does a Homeowners Association Do?

A homeowners association is a legal organization that manages a residential community. When someone buys property in a development with an HOA, they automatically become a member of the association and must follow its rules. The HOA typically owns and keeps up common areas such as parks, swimming pools, clubhouses, and entrance landscaping.

HOAs are governed by important documents:

• The declaration of covenants, conditions, and restrictions, commonly called CC&Rs, establishes the basic rules for the community. 

• The bylaws outline how the HOA operates, including how board members are elected and how meetings are conducted. 

• The articles of incorporation create the HOA as a legal entity under Illinois law.

Under the Illinois Common Interest Community Association Act, HOAs have specific rights and responsibilities. This law governs how associations are created, how they can enforce rules, and what procedures they must follow when dealing with homeowners.

What Are the Benefits of Having an HOA?

HOAs offer major advantages for housing developments that make them attractive to both developers and homeowners.

Property Values

One of the primary benefits of an HOA is maintaining consistent property values throughout the community. HOAs often enforce architectural standards and property maintenance requirements. They prevent individual homeowners from making changes that could negatively affect neighboring properties. When every home meets certain standards for landscaping, exterior appearance, and upkeep, the entire community remains attractive to buyers.

Amenities and Services

HOAs can offer amenities that individual homeowners could not afford on their own, such as:

• Swimming pools

• Fitness centers

• Playgrounds

• Tennis courts

• Walking trails 

The HOA also handles common area maintenance, snow removal, landscaping, and sometimes even trash collection. This shared responsibility means residents enjoy these benefits without the burden and expense of individual maintenance.

Community Standards

Clear rules create predictability and protect everyone's investment. HOAs can regulate matters such as exterior paint colors, fence styles, parking rules, and noise restrictions. These standards ensure that residents know what to expect from their neighbors and can make informed decisions before buying property in the community.

Resolving Disputes

HOAs provide a structured framework for addressing conflicts between neighbors. Rather than leaving homeowners to resolve disputes on their own, the HOA board can mediate issues and enforce rules fairly and consistently. This formal process reduces the likelihood of personal conflicts escalating into legal battles.

What Are the Drawbacks of HOAs?

Despite their benefits, HOAs also present challenges that developers and residents should understand before committing to this governance structure.

Costs

HOA membership requires regular assessment payments. Monthly or quarterly fees fund the association's operations. Special assessments may be needed for unexpected repairs or major projects. These costs can be substantial, and homeowners cannot opt out of paying them. Developers must carefully plan for these expenses to ensure they are reasonable and sustainable.

Restrictions on Property Use

HOA rules limit what homeowners can do with their own property. Restrictions might include prohibitions on certain types of vehicles in driveways, limits on holiday decorations, requirements for lawn maintenance, and approval processes for exterior modifications. Some homeowners find these restrictions frustrating, particularly if they purchased their home without fully understanding the rules.

Potential for Conflict

HOA boards consist of volunteers who may lack experience in property management or community governance. Poor decision-making, inconsistent rule enforcement, or personality conflicts can create tension within the community. When disputes arise between the HOA and individual homeowners, they can result in costly litigation.

Management Challenges

Running an HOA requires careful administration. Board members must organize meetings, keep financial records, enforce rules, handle complaints, and oversee contractors. Many HOAs hire professional management companies to handle these tasks, which adds to overall costs.

Do HOAs Need a Lawyer on Hand?

HOAs face numerous legal requirements and potential liabilities that make attorney guidance valuable. Illinois law has specific notice requirements, meeting procedures, and financial disclosure obligations that HOAs must follow. Not following these requirements can result in lawsuits and invalidated board actions.

When there are disputes with homeowners over rule violations, unpaid assessments, or other matters, HOAs need an attorney to protect their interests. Attorneys help draft enforceable rules, review contracts, and represent the HOA in collection actions or litigation.

For developers setting up new HOAs, an attorney can ensure that the governing documents are well-written and follow Illinois law. 

Contact an Arlington Heights, IL HOA Attorney Today

Whether you are developing a new community or managing an existing HOA, having the right attorney makes a difference. With over 150 years of combined legal experience, we understand HOA law and can help your association operate smoothly while protecting your community's interests. Call Dickler, Kahn, Slowikowski & Zavell, Ltd. at 847-593-5595 today to speak with our Cook County home owner’s association lawyers about your HOA.