subject: Everything You Need to Know About Home Owner's Associations [print this page] Everything You Need to Know About Home Owner's Associations
Homeowner's Associations are started in one of two ways. The most common way is when the neighborhood is built, the developer starts it to manage and sell the homes. It is typically started as a non profit corporation and has the authority to enforce rules for the whole neighborhood. The second way of starting an HOA is when a group of homeowner's volunteer to come together and create guidelines to improve their property values as well as their neighborhoods. In either case, bylaws or guidelines are laid out for the entire neighborhood to adhere to.
Homeowner's Associations are run by an elected board who acts in the best interest of the neighborhood and the residents. They typically are on the board for a term or one or more years. In some cases, elections may not be needed and the HOA can be a board of volunteers. There is usually a president, vice president, secretary, and treasurer on the board. They manage how rules are enforced, how budget is spent, and how fees are collected.
Fees that are due to the HOA are used to run the HOA and improve and maintain the community. Insurance of common areas, landscaping, security concerns, and repairs are often what the fees are used for. In some communities, fees are due on a monthly basis, in others they are due annually. Dues are typically mandatory, but for some communities with amenities like pools, dues may be partially mandatory and amenity usage requires an additional optional fee.
Homeowner's Associations have authority within the community. Some HOA's can be very lenient, others can be very restrictive. They have the authority to assess what is needed in the community and how to spend fees. They can determine if HOA guidelines are being met by the homes in the community. This can include how you maintain your home as well as landscaping and paint color. They can also foreclose on your home if fees are not paid. Knowing what your HOA guidelines are and what they are able to do can help you decide if the neighborhood is one that you can live with.
