Buyers often find themselves debating whether to live in a townhouse association, an HOA, or a condo association. While these three communities may seem the same, they differ in structure, maintenance, and obligations. Understanding their key distinctions will help make the decision easier.
What is a Townhouse Association?
A townhouse association is a type of homeowners association that governs a community made up of townhomes. It is essentially an HOA for townhomes, functioning as a subset rather than a separate neighborhood.
The main difference lies in what the association owns and maintains. In a townhome association, homeowners typically own the interior of the unit. Sometimes they own the roof or exterior walls; it depends on the governing documents. In some states, they can also own the land directly under the unit.
A townhouse association’s responsibilities usually cover:
- Exterior building maintenance, such as roofs, siding, and shared walls
- Landscaping and common grounds
- Roads, sidewalks, and shared infrastructure
- Community insurance covering the structures
Maintenance is shared among all owners. And because there’s more to maintain, townhouse association fees are often higher than HOAs. That said, they sit lower than condo fees.
What is a Homeowners Association?
A traditional HOA usually governs detached, single-family homes. This association’s tasks include common-area maintenance and enforcement of community rules. Homeowners are responsible for their individual properties, including exteriors, roofs, driveways, and yards.
In an HOA, homeowners exercise more control over their houses. But this setup also means owners have more responsibilities.
What is a Condo Association?
A COA, or condominium association, is the most distinct from the other two. In a condo, ownership works very differently. Here, owners typically own only the interior space of their unit.
The COA owns and maintains the building structure, roofs, exterior walls, plumbing and electrical systems, elevators, hallways, and shared amenities. Because the association handles almost everything structural, condo fees are generally the highest among the three types of associations.
How a Townhouse Association Differs from HOAs
While ownership primarily distinguishes a townhome association from an HOA, there are other differences that set it apart. Here are the features that describe townhomes.
More Demanding Maintenance
Townhome associations have far more demanding maintenance obligations than most single-family HOAs because the buildings are physically connected. Maintenance issues tend to affect more than just one unit.
For example, a roof leak might start in one unit but quickly affect others. A drainage problem can also affect other townhomes in the same vicinity.
As a result, these associations are often responsible for maintaining building components. These include roofs, gutters, siding, and even windows or doors. Fortunately, associations can usually estimate the remaining useful life of these elements, allowing for coordinated repairs or replacements.
In contrast, traditional HOAs govern detached homes. Individual owners are responsible for their own properties. There are no shared roofs or exteriors. Instead, associations are only responsible for common areas, thereby simplifying maintenance obligations.
Higher Reserve Needs
Townhome associations require larger reserve funds because they are responsible for more elements. Roof replacements, exterior painting cycles, siding replacements, and structural repairs are often the association’s responsibility in many townhome communities.
Repairs and replacements are also more expensive. These projects cost hundreds of thousands of dollars and affect the entire community.
The lack of proper reserve funding will force these associations to rely on special assessments or significant dues increases. As a result, homeowners may push back on the decision and challenge the board’s capabilities.
In a typical HOA, reserves are needed only to fund shared spaces and facilities. Reserves still play an important role, but needs are much narrower compared to townhomes.
More Risks for Insurance Coverages
Townhome associations face higher insurance costs because they face greater risk. When buildings share walls and roof systems, a single incident is more likely to snowball into a multi-unit problem.
Fires spread faster, water damage travels farther, and structural failures can affect several homes.
Because of this, townhome associations typically carry master property insurance that covers the exterior structures or the buildings themselves, along with more robust liability coverage.
Single-family HOAs aren’t exposed to as much risk. Since owners are responsible for their homes, the HOA does not need to insure them. Instead, HOAs only need to protect common areas, the board, and their employees.
Different Operational Needs
Townhome communities face operational challenges that single-family HOAs don’t typically encounter. For example, in a townhome, the board must carefully schedule maintenance work, as repairs can affect multiple residents at once. If it needs to replace a roof or repair siding, it must usually ask for access to several units.
Again, single-family HOAs don’t experience the same problems. Maintenance work may inconvenience some residents, but only to the extent that it affects them. Operations are simpler in a typical HOA.
More Prevalent Neighbor Impact Issues
Finally, neighbor impact is also greater in townhome communities. Noise is a common complaint, as sound can travel through shared walls. Plumbing leaks can also permeate units, while HVAC or electrical issues can spread.
Since the homes are attached, maintenance responsibilities can also become blurred. Who exactly is liable for damages? What if the problem is due to the neglect of a single owner? Disagreements occur more frequently and can quickly escalate when more than two parties are involved.
A traditional HOA generally avoids such issues. While noise and other nuisances can still pose problems, they are less prevalent and of a different nature. More common disputes involve property lines rather than structural concerns.
Knowledge is Key
A townhouse association is a blend of single-family HOAs and condo associations, sitting somewhere in the middle. Before committing to a purchase, buyers must evaluate their options and see which type of ownership (and maintenance obligation) best suits their lifestyle. On the other hand, boards can manage operations more effectively when they understand the clear differences.
Hillcrest offers HOA management services to communities in Chicago. Call us today at 630-627-3303 or contact us online to request a proposal!
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