WHAT TO KNOW ABOUT THE HOMEOWNERS’ ASSOCIATION
Homeowners’ associations (HOAs) are legal entities that have been established to maintain common areas within a development. Most condominiums and townhouses and new single-family subdivisions have HOAs. They are created at the time the development is started. Covenants, Conditions, and Restrictions (CC&Rs) are issued to each homeowner and the HOA is established to make sure everyone complies with the CC&Rs.
The following are common features of a HOA:
- Membership is mandatory
- There are mandatory fees that each homeowner pays
- HOAs have the ability to enact and enforce maintenance and design standards within the development
- A governing board usually hires a property manager to handle maintenance of the common areas and collect dues from the homeowners.
Some restrictions that can be enforced by an association include:
- Street parking
- Landscape designs
- Fencing styles
- Pool restrictions
- Storage of RVs
- Number of pets
- Age requirements of homeowners (over 55, etc.)
- Color of exterior house paint
The main value of an association is maintaining the quality and value of the neighborhood. Streets and yards look much better when rules are enforced. The down side of these associations is that they can be too restrictive and that they can increase the fees to an amount that is not affordable.
When purchasing a home you should investigate the rules and regulations of the association by reading the CC&Rs. You should talk to current neighbors about how they feel about their current governing board and how they are performing their duties. You would also want to know the history of those mandatory fees. How often and how much have they increased over the past several years?
Homeowners associations perform a great service and are usually worth the fees you pay. The appearance of your neighborhood has a lot to do with the value of your home.