I lived in a neighborhood that had an informal agreement and no formal HOA. The only drawback was that one homeowner refused to help pay for snow plowing. He said that he was not there in the winter. I assume that either he did not care if the fire department had access to his house, or he calculated that the rest of us would pay for the snow plowing. With no HOA there was no way to force the hold-out to help pay.
I believe that a formal HOA can force everyone to pay their share.
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