HOA vs COA in Zionsville: Key Differences

Buying in Zionsville and wondering if an HOA or a condo association will fit your lifestyle and budget better? You are not alone. The terms look similar, but the ownership, maintenance, and costs work very differently in Indiana. In a few minutes, you will understand the key differences, know what to ask for during due diligence, and feel more confident about next steps. Let’s dive in.

HOA vs COA: What they are in Indiana

How ownership differs

• HOA: You typically own your lot and home in fee simple. The association manages shared spaces like entries, private streets, landscaping, and amenities, and enforces rules recorded in the community’s covenants.
• COA/Condo association: You own your individual unit, plus an undivided interest in the common elements such as the roof, exterior, structure, mechanical systems, and halls. The condo declaration defines exactly where the unit stops and common elements begin.

In Indiana, condo projects are governed by the state’s condominium statute plus the recorded condo declaration and maps. Traditional HOAs are primarily governed by recorded covenants, bylaws, and Indiana nonprofit corporation law if the association is incorporated.

Why the distinction matters in Zionsville

The way ownership is structured changes who pays for maintenance, who insures what, and how lenders evaluate the property. Condo buildings concentrate more responsibility at the association level, which often leads to higher monthly dues than a comparable HOA neighborhood. In Zionsville, where you will find a mix of single-family subdivisions and condominium communities, this difference shows up in both your monthly costs and your to-do list as an owner.

Governance and rules

What boards can do

Both HOAs and condo associations are typically run by an elected board of directors. Governing documents include the declaration, bylaws, articles of incorporation, rules and regulations, and any architectural guidelines. Boards can:

• Create and enforce rules on topics like pets, parking, exterior appearance, landscaping, and leasing.
• Collect assessments and special assessments.
• Use enforcement tools that may include fines, suspension of amenities, and placing liens for unpaid dues. Foreclosure can be a remedy in some cases, depending on state law and the specific documents.

Meetings, notice, and members’ rights to inspect certain records are guided by the governing documents and Indiana nonprofit law if applicable. Ask early for records so you have time to review them before you commit.

Maintenance responsibilities

• HOAs often cover common area upkeep such as playgrounds, trails, or a pool. Owners usually maintain their home exterior and lot unless the covenants say the HOA handles items like lawn care.
• Condo associations typically handle building exteriors, roofs, structural components, elevators, common mechanical systems, and shared corridors. Owners are usually responsible for the interior, often described as “from the studs in,” but the condo declaration controls.

Knowing the maintenance line keeps surprises low. Ask the association to point you to the exact section of the documents that defines responsibility for roofs, windows, decks, plumbing lines, and any shared drives.

Money matters: dues, reserves, insurance, lending

What dues cover

• HOAs: Common area maintenance, landscaping, amenities, management, common-area insurance, and administration. Fees vary widely by neighborhood and amenity level.
• Condos: More extensive building responsibilities generally mean higher dues. Fees may include exterior maintenance, master insurance, utilities for common systems, elevator service, and sometimes water or sewer.

Reserves and special assessments

Healthy associations budget for the future. Reserve funds pay for large items like roof replacement and paving. A current reserve study or clear reserve policy signals lower risk of sudden special assessments. Whether HOA or COA, review the history of special assessments and any planned capital projects before you buy.

Insurance responsibilities

• Condo master policies typically insure the building exterior and common elements. Coverage inside the unit depends on the policy form and declaration. “Bare walls” coverage stops at the drywall or studs, while “walls-in” coverage can extend to some interior finishes. Most condo owners carry an HO-6 policy for interior finishes, personal property, and liability.
• HOAs usually insure common areas and association liability. Individual owners typically insure their home structure and contents with a standard homeowners policy.

Ask for the association’s insurance declaration page, confirm limits and deductibles, and verify whether your personal policy needs to cover certain building items.

Lender review and mortgage impact

Condo projects face project-level review by many lenders. Factors like owner-occupancy ratios, reserve funding, pending litigation, and concentration of ownership can affect loan approval. For both condos and HOAs, the monthly dues factor into your debt-to-income ratio and monthly budget. Associations can lien for unpaid assessments, so review delinquency levels and lien rights in the documents.

Quick comparison: HOA vs COA in Zionsville

Note: Fee amounts and coverage lines vary by community. Always rely on the recorded documents and current insurance policies.

Buying or selling: your due diligence checklist

Documents to request early

Request these before making an offer when possible, and at minimum during the inspection period:

• Declaration and plat: CC&Rs for HOAs or condominium declaration and condo map for condos.
• Bylaws, articles of incorporation, and current rules or architectural guidelines.
• Current budget and the most recent financial statements.
• Reserve study or a written reserve funding policy.
• Meeting minutes for the past 12 to 24 months.
• Master insurance declarations and any fidelity bond details.
• List of current and planned special assessments, plus delinquency reports.
• Any pending litigation disclosure and known lender or financing restrictions.
• Leasing and rental restrictions, including occupancy rules.
• Management agreement if a professional manager is used.
• Estoppel or resale certificate summarizing fees, rules, and any outstanding charges.

Estoppel and resale certificates

Many Indiana associations issue a resale or estoppel certificate. It shows the current assessment amounts, any unpaid charges, pending special assessments, and key rules that will apply to you. There is usually a fee and a short turnaround window, so build it into your contract timeline. Sellers should order this early to avoid closing delays.

Questions to ask before you commit

• Who maintains and pays for the roof, windows, decks, driveways, and utility lines?
• How much are the monthly dues and when were they last increased?
• What are the current reserve levels, and when was the last reserve study?
• Are there any planned capital projects or special assessments?
• Is there pending litigation involving the association?
• What is the rental policy and current owner-occupancy ratio?
• Are there restrictions on parking, pets, or exterior changes?
• How quickly does the board or manager respond to owner requests, and how are records shared?

Red flags to watch for

• Low or no reserves despite aging roofs, siding, or pavement.
• Frequent special assessments in recent years.
• High delinquency rates or signs of financial mismanagement.
• Significant or unresolved litigation that could impact reserves or insurance.
• Unclear responsibility for important building systems.
• Governance problems, such as frequent board turnover or persistent member disputes.

Zionsville specifics: finding records and local context

• Boone County Recorder’s Office: Obtain recorded covenants, subdivision plats, and condominium declarations to confirm boundaries and restrictions.
• Boone County Assessor and Auditor: Review parcel details and tax records. These sources can help identify common area parcels tied to an association.
• Indiana Secretary of State: Look up articles of incorporation and nonprofit filings for associations that are incorporated.
• Town of Zionsville Planning and Building or Town Clerk: Check zoning, permit history, and whether your street is public or privately maintained. Properties near Zionsville’s historic downtown may be subject to additional local design review, so confirm any overlay requirements.

Local nuance to verify: Some older neighborhoods include private streets or shared drives. Confirm how snow removal, resurfacing, and long-term repairs are funded, since this can change your cost profile.

Insurance and lending: what to verify

• Ask for the association’s master insurance declarations page, including limits, deductibles, and fidelity bond coverage.
• Clarify “bare walls” versus “walls-in” coverage if you are purchasing a condo, and confirm the HO-6 requirements.
• If you are financing a condo, speak with your lender early about project eligibility and any documentation needed from the association.
• Budget for dues in your monthly payment planning and confirm how dues factor into your loan qualification.

Your next steps

• Narrow your search by deciding whether you prefer lot-level maintenance with an HOA or building-level coverage with a condo association.
• Gather association documents as early as possible, ideally before writing an offer.
• Review reserves, special assessments, insurance, and any lender requirements alongside your budget.
• Ask targeted questions about maintenance lines, rental policies, and project plans.

If you want a second set of eyes on the documents or need help comparing neighborhoods in Zionsville, our team is here to help you weigh costs, risks, and resale potential in plain English. Ready to move forward with clarity and confidence? Connect with VIP Home Client LLC for local guidance and a data-driven plan.

FAQs

What is the main difference between an HOA and a COA in Indiana?

• In an HOA you usually own a lot and maintain your home and yard, while in a condo association you own a unit and the association maintains most exterior and structural elements defined in the condo declaration.

How do condo fees compare to HOA dues in Zionsville?

• Condo dues are often higher than HOA dues because the association covers more building-level maintenance, insurance, and common system costs, though exact amounts vary by community.

What documents should a Zionsville buyer request from an association?

• Ask for the declaration, bylaws, rules, budget, financials, reserve study, meeting minutes, master insurance declarations, details on special assessments, and an estoppel or resale certificate.

Who insures what in a condo versus an HOA?

• Condo associations carry a master policy for common elements and the building exterior, while owners carry HO-6 policies for interiors and personal property; HOA owners typically insure their own dwelling and the HOA insures common areas.

Can an association in Indiana place a lien or foreclose for unpaid dues?

• Associations can usually lien for unpaid assessments and may have foreclosure rights depending on governing documents and state law, so review the covenants and consult a local professional if needed.

How do private streets or shared drives affect owners in Zionsville?

• If streets or drives are privately maintained the association or owners fund snow removal, repairs, and resurfacing, so confirm maintenance responsibility and long-term budgeting before you buy.