What is a Neighborhood Association? 

A neighborhood association can be be a group of property owners with compulsory membership (POA or HOA) or it can be an organized group of homeowners, renters, apartment dwellers and representatives from neighborhood businesses, churches and schools who organize to improve conditions in the neighborhood.

Active neighborhoods have a chance to decide what needs to be done and work together to make it happen. A group that represents the community will have the stability, credibility and political clout to be an effective force for a better neighborhood.

Neighborhood Association (NA)

A Neighborhood Association is a group of residents who meet regularly to accomplish specific goals in their neighborhood. The association may include homeowners, renters, business owners, school faculty or staff, church officials and members of non-profit organizations. Depending on the goals of the group, meetings may be held twice a year, once a quarter or every month.

Neighborhood associations:

  • Find resources to make the neighborhood a better place to live
  • Help identify challenges and concerns
  • Help resolve conflicts
  • Provide volunteers for community initiatives
  • Represent the neighborhood as a whole to elected officials
  • Support change and improvement efforts

Property Owners Association (POA) and Home Owners Association (HOA)

Generally, POA's and HOA's are composed of property or home owners in a particular area with membership usually being compulsory. Typically, the purposes for which these organizations are formed include the administration and enforcement of covenants for preserving the architecture and appearance of a particular area, and the ownership and maintenance of common property and facilities, such as recreational facilities, streets and sidewalks. These organizations are usually supported by dues and assessments from members.

Depending on the activities engaged in, as well as on the choice of the particular organization, a POA or HOA may qualify for exemption from federal income tax under the Internal Revenue Code (PDF).

Definition Resources

Associations are defined by the US Internal Revenue Code 26 USC 528.

Property and home owner associations in the State of Arkansas are governed by the Horizontal Property Act.