Homeowners’ associations (HOA) are common in many new, single-family housing developments, as well as in condominium and townhouse complexes. An HOA is the governing body of the development or complex, usually comprising homeowners who have volunteered to serve on the HOA board.
Membership in the HOA Is Mandatory
When you buy a property governed by a homeowners’ association, you automatically become a member of the association. You don’t have the choice of not joining. The purchase of your home becomes a contract with the HOA. You agree that you’ll obey all the HOA rules and pay regular dues and any special assessments. HOA regulations are usually set by a committee or board of directors and then enforced by a paid management company or a group of volunteers. You can become involved with the HOA in order to have a voice in the decisions being made. Homeowners can request a rule change or an individual waiver, but there’s no guarantee that your request will be granted.
How much are HOA fees?
To cover these maintenance expenses, homeowners associations collect fees (monthly or yearly) from all community members. For a typical single-family home, HOA fees will cost homeowners around the $200 to $300 per month, although they can be lower or much higher depending on the size of your unit and the services provided. The larger the home, the higher the HOA fee—which makes sense, because the family of four in a three-bedroom condo is probably going to be using the common facilities more than a single woman living in a studio.
Rules for Homeowners
HOA rules are called covenants, conditions, and restrictions (CC&Rs). CC&Rs usually apply to both you, the homeowner, and to your home. The CC&Rs might cover what color you can paint your home, what you can plant in your yard, how many cars you can own and park, whether you can own a pet, and whether you can rent the property to someone else. There are usually noise restrictions, as well.
Rules differ between different HOA-governed communities, so carefully study the CC&Rs before you buy. Receiving a copy at closing is too late. Better to add a contingency to your purchase contract requiring that you receive, and have a chance to review the relevant governing documents (and perhaps have you attorney review them, too), well in advance of the closing.
Penalties May Be Imposed for Breaking HOA Rules
When a homeowner breaks a rule—for example, paints a house the wrong color, or brings in a dog that exceeds the weight restrictions—the HOA may take action. Legally speaking, many HOAs are corporations; that is, legal entities that can enforce contracts with their homeowners.
The action may simply be to require the homeowner to reverse the violation; perhaps repaint the house, or give away the dog.
However, another common penalty is requiring the homeowner to pay a fine. If the homeowner refuses to pay, the HOA can take more punitive steps, up to and including forcing the sale of the home.
HOA benefits
Many homeowners prefer to live in an HOA for several reasons, including:
• Community appearance: Homes within an HOA must meet the standards set by the association or face a fine, so you’re less likely to see unkempt lawns, peeling paint or a garishly painted house. Some HOAs have a design review board with the power to approve any changes to your home’s exterior, and which establishes a color palette for exterior paint and trim. Many HOA’s have rules about how many cars or even what type of vehicles can be parked on your property. For example, they may ban commercial vans or RVs.
• Low maintenance: Depending on the HOA, services such as trash and snow removal and lawn care are handled by the association, leaving less work for the homeowner. Typically, common areas are maintained by the association.
• Recreational amenities: While not all HOAs have swimming pools and tennis courts, many offer a range of amenities such as a community center, walking trails, sports courts and playing fields reserved for residents.
• Association management: If you have a problem with your neighbor’s dog barking, loud parties or a dispute over a tree, you can ask the management to handle the issue rather than getting directly into a spat with the homeowner next door.
