Homeowners’ Associations: Love It or Hate It

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

Homeowners’ Associations are legal entities that are created to enforce deed restrictions and provide upkeep for common areas.  These associations are more common in condominiums and in the newer subdivisions.  They are typically created when the community is first developed.  A document called the Covenants, Conditions & Restrictions (CC&R) is issued to all new homeowners and these rules are expected to be followed so the value of the properties in the development are not negatively affected.

Membership to the homeowners’ association is mandatory for all homeowners within the development and members are typically charged an annual fee.  The association has the legal ability to not only enforce city codes but also those regulations found in the CC&R.  The homeowners’ associations will have its own bylaws and governing body that will coordinate maintenance and member activities and meetings.

There are several issues the homeowners’ association will oversee.  The association will decide the amount of the maintenance fees and will then collect those fees.  They will maintain community recreational areas and landscaping.  They will provide street maintenance and community security.

Finally, they will enforce the deed restrictions which can include what items can be outside of the home, visible home maintenance, and the use of the property.  Other items that can be controlled by the homeowners’ association include parking, landscaping of private areas, paint colors, fence height, number of pets, storage of large items such as boats, and age limitations of residents.  The variety of items controlled by the homeowners’ association is limitless.

Because of the incredible control the associations have over homeowners they evoke extreme responses in people.  Owners either love the restrictions that are placed on the neighborhood.  They may love it because of the uniform look the area will have and the likelihood that their property value will be protected.  They may hate it because it limits their ability to express themselves on their property.  They may be unable to have their lawn the way they want or their house the color they would prefer.  Some see these associations as privately formed government organizations that see themselves as being above the law.

Before purchasing a home, buyers should carefully read the CC&R’s to make sure they will be able to live with the restrictions enforced by the homeowners’ Association.  Even if the rules are acceptable buyers should make sure the association fees will be easily met and that those fees will not increase to an unreasonable point in the future.