15 Differences & Similarities Between HOA Rules And City Regulations

If you've never lived in a community with a homeowners association (HOA) before, you might wonder about the differences between HOA rules and city regulations. There are a few, but there is also plenty of overlap between the pair. If you aren't familiar with what an HOA is in real estate, know that both the city and HOAs are technically types of governing bodies. But how they enforce rules, or even what rules they enforce, can differ. The bottom line, however, is that both can still slap you with fines for violations and are tasked with keeping things in their community running smoothly. 

The most important thing to be aware of is the hierarchy of city regulations versus HOA rules. Both indicate what you can or can't do with your property. The hierarchy of laws and rules is: Federal laws, then state laws, then city/county laws, then HOA regulations. These rules are supposed to build on each other, getting more specific as you move down the funnel. The main difference between city laws and HOA rules is that the latter can't supersede, and, they tend to be more restrictive. If there are any contradictions among these regulations, you must always follow the most senior. But this doesn't mean that an HOA can't require residents to adhere to additional rules that are stricter or more specific than city ones. Whether you're making the move in or out of an HOA community, here is what you need to be aware of about the rules and how they differ from (and overlap with!) city regulations.

First things first: City laws are official rules made by the local government that everyone has to follow, regardless of where in the city they own property or what kind of property they have. They could be living on the outskirts of town in a tiny shack or right in the middle of downtown in a huge loft apartment — most of the main rules apply. These rules are made by an elected city council.

On the other hand, HOAs are private groups with niche rules that residents agree to when they buy a home in that specific community. You also have to pay a fee for its services each year, on top of any property taxes that are collected by the city. HOA rules are made by an elected board of directors, who are not government officials. While this is similar to a city council, the main difference is that the directors run what is essentially a private organization. 

HOA bylaws are legally binding because they're part of the deed restrictions or covenants homeowners agree to when they move in. If someone doesn't agree with the strict HOA rules of a specific neighborhood within the city, they can buy a different house without an HOA, or with an HOA that has different rules that they find more acceptable. Because HOAs are typically neighborhood-by-neighborhood organizations, people can still live close to their desired area while avoiding rules (like no pets) or fees (thousands a month on top of property taxes) that they don't like.

City ordinances apply to everyone in the city. While buying elsewhere is also always an option, avoiding city ordinances offers significantly less flexibility than avoiding a specific HOA. Moving outside city limits will likely push buyers significantly farther away from their desired area, rather than just moving one neighborhood over to avoid a niche HOA rule. Plus, no matter where you buy, HOA or no HOA, there will always be city (or county) ordinances you have to follow.

If there is ever a conflict between HOA rules and city regulations, there is a hierarchy to their enforcement. As outlined above, the ranking is Federal, state, then city and county laws, then HOA rules. HOA rules are at the bottom because they cannot contradict city, state, or federal law. They can only build on them, or stipulate more specifics.

 A popular example is that a local HOA might say it's okay to light fireworks at the parks in the neighborhood as long as people clean up after themselves. Perhaps this rule was written during a time when fireworks were locally legal. But now the city or county rules say that private use of fireworks is totally illegal because of a recent drought. It doesn't matter where they are shot off, what kind is used, or whether you clean up afterwards, you can't shoot off fireworks. You can't point to your HOA policy as an excuse or reason — the law is the law. You must abide by a city or county rule that an HOA cannot give an exception to.

Like we outlined with the fireworks example, an HOA can be stricter than the city or county, but not more lenient. This difference also covers things that aren't necessarily illegal but are still a little bit annoying. For instance, a city might require people to obtain a permit to do construction on their property. If they want to build an extension, get a new fence, etc., then they need to pay a fee to complete the work. However, just because they have a permit that says "I am legally allowed to build a shed" doesn't necessarily mean that the HOA has to allow the shed to stand as is.

Sure, the shed complies with all city safety regulations. It is far enough from the property line and doesn't exceed any height restrictions. However, if it's painted, for example, blue — and this is not an approved color by the HOA — the organization can issue fines if it is not repainted. This is an instance of what can happen if you DIY a shed without a permit or HOA approval. City laws often set the very minimum standards for things like safety, zoning, noise, etc. HOA rules can set higher (stricter) standards than those minimums but cannot set standards lower than required by law. So sure, the shed is technically legal, and it might be fine in another neighborhood. But in this one, it's not — so it needs to be changed.

City regulations apply to everyone who lives under an HOA's jurisdiction, but the reverse doesn't apply. That is, city rules are followed by everyone who owns a property in the area. HOA rules only apply to people who are part of the homeowners' association or properties that are managed by the HOA.

For example, let's say you live along a major road. Both sides of the road are in the same city. On the east side, houses are governed by both the city and a local HOA. The western side of the street belongs to a different neighborhood, one without an HOA. The HOA has rules that say you can't paint your house blue. The city just says your exterior paint has to be in good condition. The houses on the east side have to be in good condition and can't be blue. The houses on the west side have to be in good condition and can be blue, or any other color. Even though they are in such close proximity, different rules apply. So if you're wondering, can a HOA control the exterior color of your house – it most certainly can, and usually does. Will the city? Sometimes, but it's less likely.

Continuing with the above example, let's say a house on the east side of the street is painted bright blue during a renovation. Because this only breaks HOA rules, it would be enforced by the HOA board, not the city. It would be enforced through a series of written notices, allowing the homeowner to repaint it without suffering any severe consequences. After that, if the issue still isn't fixed, the HOA board typically escalates things by issuing fines, and even legal action, like putting a lien against the title of the house until the problem is resolved.

Things work a little differently for a house on the west side that has peeling paint and is just overall unsightly. Because there is no HOA, this problem is a city issue. City laws are enforced by government agencies and officers. A city code officer would reach out to the homeowner by written notice, specifying a date by which the home needs to be repainted to avoid suffering a fine or any legal action. Sometimes, the police might also help respond to city code violations, for things like noise complaints, for example. 

While city codes regulate building safety and require property owners to keep up with their homes, they also cover a much wider slice of life than HOA rules. For example, your city will have rules about public health, community safety, building zoning, traffic flow and management, and building permits, plus overall public welfare. The city is concerned with keeping every part of the community clean, safe, and functioning well. Their rules govern both private residences and public businesses alike.

HOA rules typically just focus on a smaller scope, like overall aesthetics, correct property maintenance, and community standards within one specific neighborhood. They aren't concerned with the wider world. Instead, they exist to help maintain the property values of the homes in the gated community. 

City regulations are laws. HOA rules are rules and standards set out by a private organization. So, if they are going to be updated, the processes for that happening are very different. Ordinances, for example, are typically proposed by city staff or a city council member. Then, they are reviewed by a city council committee before being presented for hearings and a final vote. The public cannot vote on these ordinances, but they can elect council members as well as attend hearings to make their voices heard about the issues.

In contrast, HOA rules are changed by the board. How the board or management company conducts business differs from HOA to HOA, while most governments operate in a similar way. Another way in which HOA rules differ is that to change the covenants, conditions, and restrictions often requires a vote from all the members — something that doesn't apply to laws made by a government body made up of just a few people.

Violating a city regulation can result in fines, having your previously issued permits revoked, or even being taken to court. These are typically prosecuted as civil matters, not criminal, but the associated expenses can still pile up fast, especially if you haven't paid your taxes. In some cases, cities or counties might even issue demolition instructions for properties they deem to be unsafe. 

When you don't follow HOA rules, the consequences can also be very serious. You could lose your house in extreme cases. So even though there aren't typically penalties that can affect your "record," the HOA can still issue fines that escalate if the original problem isn't fixed. This is one of the reasons you should always keep up on your HOA payments and adhere to the rules, as forgetting your dues, or painting your house the wrong color and failing to pay the fines, can lead to your HOA placing a lien against your house, or even forcing you into foreclosure.

City rules typically cover the general appearance of a property. They might have regulations on how tall your fence can be or how high your grass can grow before you need to cut it — but they don't go much deeper than this on aesthetics. Unless you live in a historic area with tighter restrictions, most cities won't tell you what color you are allowed to paint your house as long as you keep up with its overall maintenance and the property isn't unsafe for habitation.

But HOAs love to tell you exactly what your house can look like! They can stipulate what colors you can paint the exterior. They can tell you what type of roof you can have. They can even tell you what type of mailbox style or landscaping choices you're allowed to install. HOAs often regulate all of these to maintain a uniform appearance in the neighborhood and keep property values high; however, before you buy, make sure that something you have your heart set on isn't outlawed in this community.

Cities and HOAs are both supposed to enforce their rules uniformly. However, when you break an HOA rule, enforcement can vary depending on board priorities, complaints, or management style. That is, many wonder how to effectively file a complaint to make sure the HOA, co-op board, or landlord listens because sometimes they don't listen at all and let infractions go unaddressed. Selective enforcement is such a big problem for HOAs that property management companies have begun to offer coaching on the subject to help the organizations come across as more consistent and fair to their residents.

In a similar way, city enforcement is supposed to run on a predictable rulebook. The blueprint is that it should be consistent across neighborhoods by deed code officers. It's kind of like getting a parking ticket. There isn't a lot of leeway. If you commit a code violation and it's not fixed the first time you are notified about it, you are going to get a fine. Things escalate according to a planned schedule. However, there have been examples when cities seemingly selectively enforced rules, such as cracking down in certain neighborhoods. And because of tight resources, cities may not always catch violations either.

City code violations are typically reported by other members of the public. In some areas, this is how the process works: Once a complaint is received, a code compliance officer goes and checks it out. If the code violation is confirmed, the property owner will receive a notice. If the issue isn't fixed within a specified number of days, the city or county can impose fines that increase daily or even record a notice or lien against the property. Sometimes, if things are really unsafe, the local government can skip the waiting period and move straight to immediate fines or legal action.

HOAs tend to move a bit slower, but it depends on the exact one you're dealing with. In general, if a violation is reported, a letter is sent to the homeowner. From there, the homeowner can be contacted (often multiple times) via snail mail, email, or certified letters to correct the infraction. Later letters can come with fines. This process can span over the course of a couple of months. If notices are ignored, the committee can meet to decide if legal action is necessary, which is where the problem of "selective enforcement" can come into play.

When you make a report to the city, you might get a more immediate response, depending on what the issue is. This is because even if you live in a community with an HOA, the things you would call the city about (like a neighbor having an out-of-control party, suspicion of hazardous waste disposal, etc.) typically require a police response, even if you call the non-emergency line. For this reason, you're more likely to get a same-day response to get the ball rolling on a resolution. Filing a digital report will take longer.

For HOA violations (something that isn't illegal, just annoying), you need to reach to the board, which is usually made up of volunteer members. Because of this, the response time is going to be very different than calling for the police. HOA inspectors can't always "catch someone in the act" for a time-sensitive HOA violation, like a barking dog or leaving trash cans out too long, as your report might not line up with when the HOA inspectors will be out and about.

A city may allow short-term rentals with a permit, or it might not allow them at all. For example, in New York City, hosts who aren't registered with the city or have Class B status can only have renters for long-term stays of 30 days or more. This is to help open up the rental market in the city for locals, as places to stay are always in high demand. In Houston, there aren't restrictions around hosting short or long-term stays on platforms like Airbnb. Instead, hosts just need to have a permit before anyone comes to stay, even for as short as one night. So if you're wondering how to make your home a vacation rental, understanding local regulations around it is a good place to start.

HOAs have to follow the local rental laws, but can also expand upon them. So in New York City, the HOAs can't say "all vacation rental activity is fine, even for short-term." But they can say "even stays of over 30 days are not allowed in our community." And it's the same in Houston. Even though the city has no problem with vacation rentals of any length, each HOA has the right to prohibit its residents from participating. This tends to be especially true of condominiums and townhouses, as they have shared common areas inside of a building — instead of just parks that the public might be able to access anyway.