Home
Owners Associations
Homeowner
Associations can be one of those unknowns in a real estate transaction. In many
communities, membership in an association is mandatory for residents, with fees
paid to maintain common areas such as landscaping, pools, and security.
HOAs
are a common element of condos; a shared community. Some communities with single-family
homes have been developed with a homeowner association in place to maintain a
common set of rules and regulations for a community along with possible maintenance
shared elements of the community.
FEES
- HOA Fees are collected on a varying basis from monthly to annual charges. Fees are collected to take care of regular management,
maintenance and Insurance requirements of an association. Association fees vary
widely and may increase with little notice.
Know
the HOA and research the association, the management company; if there is one
hired by the association to help advise the association board of directors with
their fiduciary responsibilities for the association.
Research
and obtain copies of the HOA. A partial list of items to be requested are:
-
Obtain copies of all HOA documents - CC&Rs, bylaws, rules and
regulations, and meeting minutes.
- Research the HOA's budget and reserve funds, and, if you
can, check to see how often the association raised members' fees. Normal Cost
of living increases may be normal but large increases could be a red flag that
the association may have an issue that needs further investigation.
- Check the county website for possible HOA-filed liens,
judgments or foreclosures.
- While looking at the budget and financials, look for the
amount the association is paying for attorney fees.
- Significant expenses in this
area could suggest that the board is having legal issues, rules enforcement
issues or other issues which may require further investigation.
- Many associations restrict attendance
to members only, but, if possible, attend a HOA meeting to
evaluate interactions between management and members.
HOAs you can love them or hate them. Do the research!