HOA = Home Owners Association

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

Homeowner associations are the fastest growing form of home ownership in America today. In metropolitan markets, they can account for as much as 2/3rds of all new home construction. As more and more buyers choose this form of housing, condos and planned communities are becoming a pretty dominant force to be reckoned with. Homeowner associations are quasi-governments that collect mandatory fees to pay for services and enforce standards and rules in the same way that any government would. Like other forms of government, if you choose to live in a community which has a homeowners association, opting out of fees and controls is not an option. When you buy into a community with a homeowners association, you automatically agree to the rules and regulations.Since homeowner associations have only been around since the 1960’s, they continue to evolve as lifestyles change and their strengths and weaknesses are better understood. The concept of  such carefree living promoted by early developers was largely intended to help close sales. As time and experience wore out, homeowner associations require a lot of care and attention for them to work as they are intended to. Due to the dynamics of neighbors ruling over neighbors and members being owners, the challenges are complex.  In commercial and rental property, for example, a lease or rental agreement can be terminated for non-compliance of rules.. Not so in a homeowner association. Private property rights have a major impact on how homeowner associations must be run.

Homeowner associations have the ability to customize how their business is done. This allows one homeowner association to do business differently than virtually every other homeowner association if it’s board and members choose to do so. While most don’t, there are often policies, procedures, rules as well as regulations that vary somewhat from one homeowner association to another. These differences can range from minor things such as parking and pet regulations to major policies on architectural design restrictions. And like other forms of government, what was the policy two years ago may not be the policy today if the board or members vote to change or amend it. Buyer beware!

Regardless of the tone and texture of rules and policies, there are some fundamental principles which all homeowner associations should follow when enacting and enforcing them. Some of these principles are common sense and others deal with the unique neighbor aspect of homeowner associations.

At the end of the day, homeowner associations rule breakers are neighbors. So the rules need to take this into consideration to avoid ongoing skirmishes between battling neighbors. Rather than plan for battle, mend the rules to help neighbors be better neighbors.