HOAs in New-Construction Communities: What to Know

If you're buying new construction in a master-planned community around Nashville, there's a good chance a homeowners association comes with the house. The pool, the walking trails, the manicured entrance with the stone sign and the seasonal flowers — all of that is paid for and maintained by an HOA, and the day you close you become a member of it. For a lot of buyers, that's a brand-new experience, and it raises questions that are easy to put off and expensive to ignore: What do the dues actually cover? Who makes the rules? Can they really tell me what color to paint my door?

This guide answers those before you're standing at the closing table. The goal isn't to make you wary of HOAs — in a well-run community the association is the reason the amenities stay nice and the neighborhood holds its look over time — it's to make you fluent in what you're agreeing to, so the dues, the rules, and the transition from developer control don't surprise you later. We tour new-construction communities across Middle Tennessee constantly and represent buyers in them, and this is the honest, end-to-end version.

What is an HOA in a new-construction community?

A homeowners association is a nonprofit organization that owns and maintains the shared parts of a community and enforces a common set of rules across it. When a developer plans a master-planned community, they create the HOA as part of the legal framework before the first home is sold. Every lot inside the community is bound to the association through recorded documents, so membership isn't optional and it isn't something you sign up for — it attaches to the property itself. Buy the house, and you've joined the HOA.

Two things make the HOA in a new community different from one in an established neighborhood, and both are worth understanding up front. First, in the early years the developer still controls the association, because they still own most of the lots — which means the rules, the budget, and the standards are being set by the builder of the community, not yet by the residents living in it. Second, the amenities and even the rules are often still being built and finalized while you're buying, so what you see on your first model visit isn't always the finished picture. The documents, not the sales center, are the authority on what the community will ultimately be.

What do HOA dues cover?

HOA dues — sometimes called assessments — are the recurring payments every owner makes to fund the association. They're typically billed monthly, quarterly, or annually depending on the community, and they pay for the shared expenses no single homeowner is responsible for on their own. What exactly they cover varies widely from one community to the next, which is the whole reason to read the budget rather than assume. A common list looks like this:

• •Amenity operation and upkeep — the pool, clubhouse, fitness room, playgrounds, dog park, and any other shared facilities the community offers.
• •Common-area maintenance — landscaping at the entrance and along shared roads, mowing of common green space, irrigation, and seasonal plantings.
• •Shared infrastructure — community lighting, sidewalks, walking trails, and sometimes private roads, stormwater ponds, or gates if the community has them.
• •Management and administration — the fee paid to a professional management company, plus insurance on common areas, accounting, and legal costs.
• •Reserve contributions — money set aside for big future repairs and replacements, like resurfacing the pool or repaving private roads, so those costs don't all land as a surprise later.
• •Sometimes services to the home itself — in some communities, particularly townhome or condo-style developments, dues cover front-yard landscaping, exterior maintenance, or trash service.

The single most useful question to ask is simple: what's included, and what isn't? Two communities with similar-sounding dues can cover very different things — one might include front-yard lawn care while the next leaves all yard work to you. The budget document spells it out, and the answer changes what the dues are really worth to you.

How are HOA dues set, and can they go up?

Dues are set by the association's budget — a projection of what it will cost to run the community for the year, divided among the owners. In a new community that budget is initially prepared by the developer, and it's worth a careful look, because early-stage budgets can run lean while the community is still small and the developer is covering some costs directly. The honest reality is that dues are not fixed forever. They can rise over time, and there are a few common reasons they do.

• •The community fills in. Early budgets sometimes don't yet reflect the full cost of running every amenity at full occupancy, so dues can adjust upward as the development completes and the developer's subsidies end.
• •Amenities come online. A pool or clubhouse that's still under construction during your purchase carries real operating costs once it opens, and those costs flow into the budget.
• •Reserves get funded properly. If early reserve contributions were thin, the resident-controlled board may need to raise dues to build the reserve fund to a healthy level.
• •Ordinary inflation. Landscaping, insurance, and management contracts all cost more over time, the same as everything else.

The governing documents usually set limits on how much dues can increase in a given year without a special vote of the members, so this isn't unlimited — but it's not flat, either. The two documents worth reading together are the current budget and the reserve study, if one exists. A community with a realistic budget and a funded reserve is far less likely to spring a large increase than one running on optimistic numbers.

The cousin to a dues increase is the special assessment — a one-time charge the HOA levies on top of regular dues to cover a cost the budget and reserves can't absorb, like a major repair or a shortfall. It's the part of HOA ownership buyers most want to avoid, and the best protection against it is a well-funded reserve, because reserves exist precisely so that predictable big-ticket items don't become surprise bills. In a brand-new community the immediate risk is usually low — everything is new and under warranty — but it's a real reason the reserve study matters over the longer term. The governing documents define how and when a special assessment can be imposed, and often require a member vote above a certain threshold.

What are CC&Rs?

CC&Rs — Covenants, Conditions, and Restrictions — are the recorded rulebook that governs what owners can and can't do with their property and the community. This is the document that gives the HOA its authority, and it's the one buyers most often skip and most often wish they'd read. The CC&Rs are recorded against every lot, which means they run with the land and bind not just you but every future owner. They're a legal contract you accept by buying, so they deserve a genuine read.

The CC&Rs typically work alongside a couple of companion documents: the bylaws, which govern how the association itself operates — how the board is elected, how meetings run, how votes are counted — and a set of rules and regulations or architectural guidelines, which fill in the day-to-day specifics. Together these three layers define the experience of living in the community.

What do CC&Rs typically govern?

This is where the rules get concrete, and where the answer to 'can they really tell me what color to paint my door?' is, in many communities, yes. The point of these restrictions is to keep the community consistent and protect the shared look that the amenities and landscaping are part of — but they do constrain what you can do with your own home, so knowing them before you buy matters. Common areas the CC&Rs address include:

• •Exterior appearance — paint colors, roofing and siding materials, and changes to the front of the home, often requiring approval before you make them.
• •Additions and structures — fences, sheds, pools, decks, and outbuildings, usually subject to architectural review and approval.
• •Landscaping standards — what you must maintain, what you may plant, and sometimes requirements for keeping the lawn and front yard to a standard.
• •Parking and vehicles — where you can park, restrictions on RVs, boats, trailers, and commercial vehicles, and rules about street parking.
• •Use of the property — whether and how you can rent the home, run a home business, or use it for short-term rental, which many HOAs restrict or prohibit outright.
• •Everyday-living rules — pets, trash-can storage, holiday decorations, signage, and similar quality-of-life specifics.

Two of these deserve special attention from new-construction buyers. The first is the rental and short-term-rental rules — if you might ever want to rent the home, the CC&Rs can settle the question before you buy, and they often do, since many communities limit or ban it. The second is the architectural review process, which most master-planned communities run through an architectural review committee — sometimes called the ARC or modifications committee. If you want to add a fence, build a deck, install a pool, change your paint color, or alter the front of the home, you generally submit the plan and wait for written approval before starting work. That isn't bureaucracy for its own sake — it's the mechanism that keeps the streetscape consistent, which is part of what you're paying for in a designed community — but it does mean a project you assumed was your own decision needs a sign-off first, and that approval can take time. In a new community this committee is run by the developer at first and passes to the residents with the rest of the association, so reading the architectural guidelines before you buy tells you what's allowed and what's going to need a formal request.

How does control pass from the developer to the residents?

This is the part of new-community HOAs that's least understood and genuinely important. In the early years, the developer controls the association — they appoint the board, set the budget, write and amend the rules, and run the architectural committee. This period is often called developer control or the declarant-control period, and it exists for a sensible reason: while most lots are still unsold and the community is still being built, the developer needs to keep standards and finances consistent to finish the project as planned. As homes sell and the community fills in, control transitions to the residents. At a defined point — usually tied to the percentage of lots sold or a set number of years, both spelled out in the governing documents — the developer turns the association over to the homeowners, who elect a resident board to run it going forward. This handoff is commonly called the 'turnover' or transition: the moment the community stops being run by its builder and starts being run by the people who live there.

Why the developer-to-resident transition matters to a buyer

Whether you're buying early in a community's life or after turnover changes what you should look at, and it's worth knowing where the community stands. A few honest points:

• •Buying early means the developer is still in charge. The standards are usually consistent because one entity is enforcing them, but the budget may not yet reflect full operating costs, and the amenities you're counting on may still be on the drawing board.
• •Buying near or after turnover means the residents are taking the reins. The community's true running costs are clearer by then, but you'll want to see whether the developer left the association on solid financial footing — a funded reserve and a realistic budget.
• •The timing and trigger for turnover live in the documents. Knowing when control is scheduled to pass, and on what condition, tells you what stage of the community you're actually buying into.
• •A clean turnover matters. When a community transitions well, the resident board inherits good books and complete amenities. The transition is a normal, planned event — it's just one worth understanding rather than discovering after the fact.

What documents should you review before buying?

The single best thing you can do as a buyer in an HOA community is read the documents while you still have the option to walk away. Tennessee buyers should ask for the full set during the contract period and actually go through it. The package to request:

1. The CC&Rs — the recorded covenants and restrictions, so you know the rules that bind the property.
2. The bylaws — how the association is governed, how the board is elected, and how decisions get made.
3. The rules and regulations and architectural guidelines — the day-to-day specifics on paint, fences, parking, pets, and approvals.
4. The current budget — what the dues fund, how the money is allocated, and whether the numbers look realistic.
5. The reserve study or reserve fund balance, if available — how well-prepared the community is for future big-ticket repairs.
6. Recent meeting minutes and any financial statements — these surface the real working details, like planned increases or open items the documents track but a model-home visit won't surface on its own.
7. The dues amount and billing schedule, plus any transfer or capitalization fees charged when you buy in.
8. The developer-control and turnover terms — when and how control passes to the residents.

If a document references a planned increase, a pending special assessment, an underfunded reserve, or an unusual restriction, far better to learn it now than after closing. None of this is a reason to fear an HOA — most are well-run and the documents read like the ordinary governance they are. It's simply a reason to read before you sign rather than after.

What to verify in a new community specifically

New-construction communities carry a handful of verification points an established neighborhood doesn't, precisely because the community is still taking shape. Confirm these for the specific community and the specific phase you're buying in:

• •Which amenities exist today versus which are still planned, and a realistic timeline and commitment for the unbuilt ones — promised amenities are part of the appeal, so confirm what's actually contracted.
• •Whether the dues you're quoted reflect full community operation or an early, developer-subsidized figure that will rise as the community completes.
• •How the community is phased, and whether dues, rules, or amenities differ between phases or between home types within the same community.
• •The current stage of developer control and the scheduled turnover trigger, so you know who runs the association now and when that changes.
• •The reserve plan — even a brand-new community should be building reserves for the day its new amenities and roads need work.

The model home and the rendering on the sales-center wall show the finished vision. The documents show the commitment. When the two line up, that's reassuring; when they don't, that's exactly the conversation to have before you're under contract, not after.

How we help on the HOA side

Because we tour new-construction communities across Middle Tennessee constantly, the HOA is part of how we represent buyers from the first model visit onward. We'll help you gather the full document set and read it with you before you're committed — so the dues, the CC&Rs, the rental rules, and the turnover terms are clear before they matter rather than after — flag anything in the budget or reserves worth a second look, and help you understand which amenities are real today and which are still on the way. None of that changes the HOA itself; the documents are the documents. What it changes is whether you buy into the community with your eyes open. We put the relationship in writing, too: every buyer agreement we sign includes a 24-hour kickout, so written notice releases you within a day if it isn't working.

Frequently asked questions

Can I opt out of the HOA in a new community?

No. In a master-planned community the HOA membership attaches to the lot through recorded documents, so it isn't optional and you can't decline it. If you'd prefer not to belong to an HOA at all, the better move is to buy a home that isn't inside one in the first place — and we're glad to help you find that if it's what you want. Inside an HOA community, membership and dues come with the property.

Are HOA dues tax-deductible?

Generally not for a primary residence — HOA dues on the home you live in are usually treated as a personal expense, not a deduction. The picture can differ for a rental property or a home office, where dues may factor into the tax treatment differently. We're a real estate team, not your CPA, so confirm your specific situation with a tax professional. The point worth knowing is simply not to assume the dues come back to you at tax time.

What happens if I don't pay my HOA dues?

Dues are an enforceable obligation tied to the property, so non-payment has real consequences. The association can typically charge late fees and interest, and in most cases can place a lien on the home for unpaid amounts, with the ability to pursue collection under the terms in the governing documents. The practical takeaway is to treat dues as a fixed, non-optional cost of ownership — budget for them the way you would the property taxes and insurance.

Will the HOA dues be the same after the developer turns it over to residents?

Not necessarily. The developer's early budget can run lean while the developer is still covering some costs and the amenities aren't all operating, so dues sometimes adjust once the resident board takes over and the full running costs are clear. This isn't a flaw — it's how the transition often works — but it's a reason to look at whether the early budget is realistic and the reserves are funded, rather than assuming today's figure is permanent.

Who is The Will Johnson Team?

The Will Johnson Team is a veteran-owned Nashville and Middle Tennessee real estate team brokered by eXp Realty since 2017. Will Johnson is a U.S. Army veteran and a former nurse anesthetist who has worked as a Middle Tennessee Realtor for twelve years. We represent buyers and sellers across the Nashville region, with a particular focus on relocation and new construction. You can reach us at 615-265-1000.