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And if you don't want to pay HOA fees, the solution is simple - don't buy a home in a neighborhood that has an HOA.
Exactly! It's your choice.
The news however are going to help alot of people. In that ifyou owe back HOA fees they MUST set up a payment plan ofr the homeowner. In the past this was not the case and fees kept piling on and they demanded pay in full etc... Now with the payment plan the payments go to pay the HOA back dues first then fees no more high intrest etc...
Also they can NOT foreclose on Active duty military.
To foreclose an HOA now has to go through the court system, I guess there were abunch of loop holes and the HOA could work a go around and foreclose on a property, no they can't. It gives the Homeowner more rights and ways to pay off past fees.
BUT it all comes down to CHOICE, no one is putting a gun to your head to buy in an HOA regualted neighborhood.
The news however are going to help alot of people. In that ifyou owe back HOA fees they MUST set up a payment plan ofr the homeowner. In the past this was not the case and fees kept piling on and they demanded pay in full etc... Now with the payment plan the payments go to pay the HOA back dues first then fees no more high intrest etc...
Also they can NOT foreclose on Active duty military.
To foreclose an HOA now has to go through the court system, I guess there were abunch of loop holes and the HOA could work a go around and foreclose on a property, no they can't. It gives the Homeowner more rights and ways to pay off past fees.
BUT it all comes down to CHOICE, no one is putting a gun to your head to buy in an HOA regualted neighborhood.
No, but if you work in the northern suburbs and also want to live in the northern suburbs, it can be extremely difficult to find a house in a neighborhood without a mandatory HOA because municipalities have pretty much required them for new developments. So that notion of "choice" is fast disappearing in large swathes of Collin and Denton Counties.
There are still quite a few smaller towns with homes that have non HOA neighborhoods....
Prosper, Celina, Melissa, Lucas, Parker etc... yes you may to commute futher etc... Schools may be an issue etc...
BUT it's choices.
If you work in Plano and want to live in Plano or Frisco then yes you will have a very hard time finding a non HOA area.
When I hear 'burdoned' and 'perpetuity' I smell lawyer. ..Good points, but I didn't make the comparison..But now that you mention this, what you are referring to would/should be mitigated under a properly managed reserve fund and if there were a proper budget planning tool in place and/or a reserve fund study or forecast was done then the risk to the homeowner going forward should not be of great concern.
"Burdened" is the proper term when referring to property burdened by an HOA corporation. Of course, the marketing for HOA-burdened property never mentions the "burdened" part. The marketing also never describes the HOA corporation as a "regime" although that is also the proper term.
A reserve fund does not mitigate this problem. The assessments are an unconstitutional tax and should never, ever be permitted to attach as a lien especially with respect to non-condo homesteads. A reserve fund simply covers up the problem.
A reserve fund first and foremost is a target for the vendors who would love to walk off with or "manage" every bit of it. The "reserve fund" has simply become another opportunity for a "need" for some vendor to be hired to compute what the reserves should be and for another vendor to "manage" such a fund.
Second, if you are eating into a reserve fund or feeding off of the interest from a reserve fund to pay for expenses, then it is inevitable that the homeowners will eventually be hit with the ever-increasing expenses via increased assessments or various dubious fees derived from "fines", "transfer fees", and other such nonsense. In any event, this approach continues to ignore that ever-increasing perpetual assessments are not a payment on any loan. The comparison to a "mortgage" is frequently used by the HOA industry vendors to justify why they should have the power to foreclose. The argument is meritless and a false comparison.
Legislatures (lobbied by and funded by the HOA industry vendors) continue to try to fix the problems with privatization with more privatization. That's the wrong direction and it inevitably creates new opportunities for abuse and an additional set of problems.
It just depends on the HOA, if you find a house you really like read the HOA regulations and bylaws before you put in an offer. Some are run by over zealous busy bodies who have their nose in everyone elses business, and others are pretty relaxed and just there to keep people from letting their grass get a foot high.
You could also look at older homes, the HOA's tend to come with new and newish developments.
"Burdened" is the proper term when referring to property burdened by an HOA corporation. Of course, the marketing for HOA-burdened property never mentions the "burdened" part. The marketing also never describes the HOA corporation as a "regime" although that is also the proper term.
A reserve fund does not mitigate this problem. The assessments are an unconstitutional tax and should never, ever be permitted to attach as a lien especially with respect to non-condo homesteads. A reserve fund simply covers up the problem.
A reserve fund first and foremost is a target for the vendors who would love to walk off with or "manage" every bit of it. The "reserve fund" has simply become another opportunity for a "need" for some vendor to be hired to compute what the reserves should be and for another vendor to "manage" such a fund.
Second, if you are eating into a reserve fund or feeding off of the interest from a reserve fund to pay for expenses, then it is inevitable that the homeowners will eventually be hit with the ever-increasing expenses via increased assessments or various dubious fees derived from "fines", "transfer fees", and other such nonsense. In any event, this approach continues to ignore that ever-increasing perpetual assessments are not a payment on any loan. The comparison to a "mortgage" is frequently used by the HOA industry vendors to justify why they should have the power to foreclose. The argument is meritless and a false comparison.
Legislatures (lobbied by and funded by the HOA industry vendors) continue to try to fix the problems with privatization with more privatization. That's the wrong direction and it inevitably creates new opportunities for abuse and an additional set of problems.
At it's heart buying in an HOA neighborhood is a contractual agreement. Your unconstitutional tax argument is total rubbish.
I am so hesitant about purchasing our first home since pretty much all the lots we have looked at belong to a HOA. I've read up on a lot of horror stories regarding issues with HOA's that now I'm scared to even continue with the process. Putting liens & foreclosures....how can they do this & still win the case if taken to court? This is horrible. Does anyone have any issues to share regarding HOA's in the DFW metroplex? Thank you in advance.
First off all, you are going to hear about horror stories and HOA issues because problems are newsworthy. It's like the fact that you hear about auto and plane crashes, but you don't hear news about how many accident-fee days there are. Would you go on the news to tell everyone that you have had yet ANOTHER wonderful, issue-free commute? Likewise, you won't hear many stories about great HOAs because they aren't scandalous or newsworthy. "I'm so glad that my HOA made my neighbor repaint his fence."
There are PROS and there are CONS, just as there are GOOD and BAD HOAs. Read the rules and restrictions. Be well-informed and decide what you value most. Just remember that your neighbors will have the same restrictions or freedoms that you have. I don't trust everyone's judgement.
These are JUST MY OPINIONS based on living in HOA communities.
Personally, I have lived in several HOA communities for many years. Some were weak and didn't really enforce the CC&Rs (neighbors with overgrown trees and lawns, Christmas decorations and political signs up year-round, boats, RVs, and non-operational autos parked on the street all year, etc.) and others were very strict and quick to react to violations (mow your lawn & trim your tree notices). Since, I pay my dues on time and take care of my property--I've never had an issue.
You have clearly been told about all of the negatives. I considered all of those too, but for me, paying monthly HOA dues is similar to paying supplemental property insurance & club membership. It provides me with certain insurances and it also gives me access to "members-only" amenities.
What I like about having an HOA:
1. Security: Gated community, entry guards, & 24-hour security patrols. Insurance and crime rates are often different in adjacent HOA and non-HOA communities.
2. Restricted access: No extra traffic driving through the neighborhood at all hours & no door-to-door solicitations.
3. Insurance of resale value: Since homes & landscaping must be maintained in a specific manner, this ensures that my neighbor will not be allowed to depreciate the value of the neighborhood. Often, values (of very similar houses) are higher and more stable within HOA communities. "That house will cost more than a house on XYZ Street BECAUSE it's inside [insert community name]."
4. Private Amenities: Private community parks (without gangs and drugs), playgrounds, clubhouse, pools, etc.
5. Peace of Mind: I don't have to worry about fuchsia houses, dilapidated houses, over-grown lawns, or non-operational vehicles making the street look like a junkyard.
Houses near these "neighborhood problems" stay on the market a lot longer and often sell for less than those without issues. Think about finding a great house, but it's next door to an eye sore or worse. It isn't good. When you buy a house, you buy a little piece of a neighborhood & neighborhoods sell houses.
Some neighborhoods are great without HOAs, but some aren't. I just like having the insurance.
Yes good point, was thinking the same thing HOAs do cost money and that would be a big reason NOT to commit to one. But, I am pretty sure if you don't pay your student loans they can garnish your wages, take your tax returns and embarrass you at your place of employment..I consider that pretty bad.
Your HOA dues should be factored into to your overall mortgage and viewed as part of your mortgage the day you sign, most people do it this way. If not then and they lose their home because they can't pay HOA dues and can pay their mortgage it's their fault really.
Student loans are generally more flexible and willing to work with you when needed. With HOA's, it's more like a mortgage- pay in full or else.
Yes, I do agree that people should view paying HOA as non-negotiable as mortgage & taxes, just pointing out that it's one more "must pay" line item inthe budget over living in a non-HOA neighborhood.
"Burdened" is the proper term when referring to property burdened by an HOA corporation. Of course, the marketing for HOA-burdened property never mentions the "burdened" part. The marketing also never describes the HOA corporation as a "regime" although that is also the proper term.
Its the proper legal term maybe, but for alot of people it enhances the value of the subject property(s). It's not an Easement, it's a de facto governing body set out to maintain property value. There are few people willing to buy in HOAs who view it this way, other than the fact it's just another thing to pay for. A well run HOA, which there are many you don't hear about, have the opposite effect of being a burden. In other words, most homeowners are the beneficiaries of any property "burdened" by an HOA.
For example:
"What I like about having an HOA:
1. Security: Gated community, entry guards, & 24-hour security patrols. Insurance and crime rates are often different in adjacent HOA and non-HOA communities.
2. Restricted access: No extra traffic driving through the neighborhood at all hours & no door-to-door solicitations.
3. Insurance of resale value: Since homes & landscaping must be maintained in a specific manner, this ensures that my neighbor will not be allowed to depreciate the value of the neighborhood. Often, values (of very similar houses) are higher and more stable within HOA communities. "That house will cost more than a house on XYZ Street BECAUSE it's inside [insert community name]."
4. Private Amenities: Private community parks (without gangs and drugs), playgrounds, clubhouse, pools, etc.
5. Peace of Mind: I don't have to worry about fuchsia houses, dilapidated houses, over-grown lawns, or non-operational vehicles making the street look like a junkyard."
I think many of the problems with HOA's is we treat them as private organizations. WE should be honest about what they are, which is a government. We have effectively created a new level of government at a sub-city level. I know people disagree but look at a modern HOA.
1: When you move there you are automatically bound by the rules(laws)
2: Maintains streets(often) public pools/playgrounds (parks) community buildings (offices and rec centers)
3: You elect board members(lawmakers) who can make and change the rules(laws)
4: You must pay the annual amount assessed against you to support this organization and what they do (property taxes)
5: If you break the rules you can be ticketed and fined
6: If you fail to pay your fees(taxes) or fines your property can be confiscated.
It is a government. It needs to be regulated and treated as such. If people began to view it that way, and took it as seriously as they do their city government, people would be much more involved in their HOA, elections
would be between candidates who would actively run, and have real differences, and platforms, and these outrages wouldn't happen. Also if it were regulated correctly as a government there would be more checks on them from the governmental levels above.
True, many HOAs do function as governments/ municipalities by building and maintaining roads and parks and pools and even providing security and code enforcement. In Dallas, I pay property taxes which fund these same things. How come the Collin County (which was developed almost exclusively with HOA's) has an identical tax rate to Dallas County (almost exclusively non-HOA) at $.24? How come the county taxes aren't less if the HOA's are controlling & charging for things the county doesn't have to manage?
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..Good points, but I didn't make the comparison..But now that you mention this, what you are referring to would/should be mitigated under a properly managed reserve fund and if there were a proper budget planning tool in place and/or a reserve fund study or forecast was done then the risk to the homeowner going forward should not be of great concern.
Personal experience with HOAs
Likewise, you won't hear many stories about great HOAs because they aren't scandalous or newsworthy. 
"I'm so glad that my HOA made my neighbor repaint his fence." 
