Real Estate Marketing & Beyond
If you ask 100 buyers whether a community with an HOA is right for them you are sure to get a variety of answers ranging from "Absolutely!" to "Are you crazy!" and even "What is an HOA?". Opinions vary on their purpose and follow-through, and while they are rampant in some parts of the country, other areas have very few HOA communities.
Home Owners Associations and picket fences - Courtesy © jStock - Fotolia.com
The vast majority of homeowners want neighborhood integrity, community harmony, and an investment in a home that continues to grow equity. Some find that Utopian existence in a non-HOA community while others embrace HOA subdivisions with the peace of mind knowing there are rules that you expect to be enforced. Only YOU can decide if an HOA is right for you and your family.
An HOA is typically a non-profit organization established by the real estate developer and handed over to the community upon development completion or after a percentage of homes are built. The HOA provides rules regulating maintenance of common areas and enforcement of deed restrictions (filed with the property records) and has the goal of maintaining property values and enhancing the neighborhood's appearance. A copy of the Covenants, Conditions & Restrictions (CC&R) is normally provided to buyers at closing.
Once the HOA is handed over to the community an HOA Board is established (by vote of the subdivision members) to handle disputes and enforce the CC&R rules. They also collect dues for common area upkeep (i.e. pools, play areas, entrances, etc.) and can impose special fees to pay for emergency repairs when the association lacks sufficient funds to fix the issue(s).
The majority of HOA problems stem from a handful of issues. Some of the more common "problems" are:
Community? - Courtesy © elfivetrov - Fotolia.com
Drive through a Warner Robins subdivision or a condo community in Long Island where the landscaping is well maintained, litter is non-existent, and visible eyesores are nary to be found and you can bet homebuyers are going to be impressed. Conversely, travel through a community that looks messy and unattended and the opposite response is typically noted. While those conditions alone are not always an indication that an HOA exists (and is enforced), the inference is often made.
Here are several resources homebuyers can use to determine if a subdivision has an HOA:
They can be very restrictive with the HOA Board ruling with an iron fist, lax and easy going, or someplace in-between the extremes. While there is no standard list of rules homeowners must adhere to, here are some common features that many HOAs have rules for (or against):
That depends on how strictly enforced the CC&R rules are and how stringent/lenient the state laws governing HOA bylaw enforcement are in the state you live. In general, HOAs have the ability to generate fees, fines, establish liens, solve minor disputes, or take homeowners to court for serious (and often repetitive) infractions.
For the vast majority of homeowners living in an HOA subdivision or community, the experience is nearly transparent. Follow the rules if you live in an HOA subdivision and issues should not arise.
Potential buyers need to weigh their options on HOA living and determine if the guidelines and enforcement of those HOA rules are a good fit for their values and lifestyle. Remember, owning a home is an investment and doing your part to keep the subdivision looking nice will help keep property values UP.
The HOA is a private government over a subdivision subject to CC&Rs, which mandate the HOA government. The legal structure of the HOA subjects the homeowner to a loss of rights and freedoms enjoyed by others, as HOAs are not subject to constitutional protections of your rights, and homeowners live at the sufferage of the board. Some have good boards that can chnage tomorrow into tyrants, and there is very little a homeowner can do about it.
Also, forget about all your good neighbors coming to your aid to get the board to meet its duties and obligations -- nobody cares about you! And that goes for the attorney general, the real estate department, ant consumer agency, the county attorney, or your state legisalture that allows private governmetns to exist without oversight. That means, there are no penalties under law to punish or serve as a detriment against board violations. You must file a civil suit to get the board to follow the CC&Rs, over such little things as providing notice of meetings and violations, or giving you copies of its financials.
George,
True statements but what you see as a "loss of rights and freedoms" others see as an opportunity to ensure all homes/yards are maintained in a manner that brings pride to the entire community. A bit extreme, but I do not know anyone that wants the house with 1,000 yard gnomes next door...especially when trying to sell.
When we list our homes the majority of us want the entire neighborhood to look great so buyers will want to live there...hopefully that will translate into higher sales prices long-term. Can that be done without an HOA...it sure can. Is it...sometimes. A well run HOA will always ensure it gets done. Yes, there are those that go to far with HOA enforcement, and the rights of homeowners are limited as you mention, but it is a choice many are willing to make. Is the risk worth the reward? Depends on the buyer/homeowner.
An easy to use resource to check out state HOA laws: http://www.hoa-usa.com/
~ Anita ~