A neighborhood association (NA) is a group of residents or property owners who advocate for and/or organize activities within a neighborhood. An association may have elected leaders and voluntary dues.
Some neighborhood associations in the United States are incorporated, may be recognized by the Internal Revenue Service as 501(c)(4) nonprofit organization, and may enjoy freedom from taxation from their home state.
The term neighborhood association is sometimes incorrectly used instead of homeowner’s association. But neighborhood associations are not homeowner’s associations – groups of property owners with the legal authority to enforce rules and regulations that focus on restrictions and building and safety issues. A neighborhood association is a group of neighbors and business owners who work together for changes and improvements such as neighborhood safety, beautification and social activities. They reinforce rules and regulations through education, peer pressure and by looking out for each other. Some key differences include:
• Neighborhood association membership is voluntary or informal. HOA membership is mandatory generally through rules tied to the ownership of property like deed restrictions.
• Neighborhood associations are focused on general advocacy and community events. HOAs often own and maintain common property, such as recreational facilities, parks, and roads.