How our HOAs are different
A Homeowners Association (HOA) for manufactured home owners on leased land in Delaware is different from a traditional HOA for stick-built home communities in some key ways, mainly because of the ownership structure and the laws that apply. Here’s a breakdown:
Manufactured Home Communities
Homeowners own the house itself but lease the land from a community owner or park owner. This means residents pay rent (called “lot rent” or “ground rent”) to the landowner. The HOA functions more like a homeowners association combined with a tenant association—advocating for fair lot rent, maintenance of common areas by the park owner, and legal compliance.
Land Ownership
Legal Framework
Governed by the Delaware Manufactured Home Owners and Community Owners Act (Title 25, Chapter 70). This law provides protections for homeowners on leased land, such as limits on rent increases, rules for community owners, and procedures for dispute resolution.
Primary Expenses
Residents pay lot rent to the landowner, which typically covers land use, infrastructure (roads, utilities, trash pickup, etc.), and sometimes amenities. HOA dues may be minimal or voluntary if the HOA is more advocacy-oriented. Dues are MUCH lower than traditional HOAs!
Traditional HOAs
Homeowners own both the house and the land underneath it. The HOA owns or controls common areas and enforces community rules (architecture, landscaping, amenities). Members pay HOA dues that are used to maintain shared property.
Land Ownership
Legal Framework
Governed by the Delaware Uniform Common Interest Ownership Act (DUCIOA, Title 25, Chapter 81) or other state HOA laws. Rules are centered around managing common interest communities and protecting property values.
Primary Expenses
Homeowners pay HOA dues/assessments to fund maintenance of common property, amenities, and community services. There is no separate land rent. HOA dues can cost thousands of dollars a year!
Protect your most valuable investment - your home! If your community does not have an HOA, learn how to start one now. We can help!