[JimMe]

Originally Posted by SoFLGal

Homeowners' associations, or HOAs, are formal legal entities created to maintain common areas; they have the authority to enforce deed restrictions. Most condominium and townhome developments, and many newer single-family subdivisions have HOAs, which are usually created when the development is built. Covenants, Conditions & Restrictions (CC&R's) are issued to each homeowner, and HOAs are established to ensure that they are adhered to in order to maintain the quality and value of the properties involved.

HOA's can be charged monthly, quarterly or yearly. If the community was maintenance free then you might have fees associated with that. Also some communities include certain things like: cable, water, etc

Features of a Homeowners' Association:
•Membership is mandatory for all property owners within the development

•Members are usually charged mandatory fees

•Homeowners associations have the authority to enact and enforce maintenance and design standards in addition to those established by City ordinances

•Homeowners' associations are corporations with formal bylaws - there is usually a governing board which hires a property management company to handle maintenance and enforcement issues

•Many homeowners' associations publish a newsletter

Other restrictions that may be enforced by an HOA: parking on street, landscaping approval or types of plants, garage door being open, fence restrictions, pool restrictions, erection of basketball hoops or tree houses, storage of boats and RVs, number of pets, age requirements of residents. There can be more.

If you want to start a discussion on a controversial topic, start talking about Homeowners' Associations. You are bound to find people who appreciate them, people who despise them, and people who are somewhere in the middle. Those who like Homeowners' Associations say that they protect the value of their homes and neighborhoods. They do this by keeping the area looking attractive, and making sure no one does anything wild, like painting their house gold and pink, parking an 18-wheel truck on their front lawn, leaving dismantled vehicles in the street, or running a flea market in the driveway. Opponents of HOAs point to overzealous and unscrupulous HOA boards, fee increases that can't be declined, and rules that are far too restrictive, from what kind of shrubs to plant, to placement of a clothesline, to preventing the displaying of the American flag. Anti-HOA organizations believe that the HOA are private governments that set themselves above the law.

Whether or not to live in a development governed by CC&R's and an HOA is an individual choice. Prospective home buyers should:
•Read any CC&R's recorded against the home and make sure they can live with the conditions and restrictions contained in the document prior to close of escrow.

•Find out what the current dues are. Once you buy the home, you can't decline to pay the dues. If you do, you could be evicted and your home could be sold to liquidate the debt. HOA dues can range from $20 per month to hundreds per month, depending on the property and the amenities provided by the community.

•Find out how often the dues have been raised during the history of the HOA. Will you be able to withstand future increases or will you have to move? Find out if the HOA has cash reserves.

•Determine if there are term limits for the Board, and if Board members have attended training sessions in efficient HOA management

•Determine if there is litigation pending involving the HOA

Could you comment on the relative difficulty in selling a HOA home and one that is not burdened by a HOA?

[jhlcomp]

Originally Posted by freedomlibertarian

Talk about choice, the way all the yuppies are taking over and developers there is going to be little left of anything that doesn't have an HOA attached to it. I hope it all backfires. People think that this actually make the home more valuable, no not really, when people find out what is attached to it, along with property taxes and a HOA fees especially in this market which is going to take a very long time to recover they are going to look elsewhere. I rather look at a pink house any day then to live under tolalitarian. I like personality rather than all the same yuppie cookie cutter homes with restrictions and rules and nosey buddies attached.

Fortunately, we have choices. We don't have to live in an HOA complex. However, a great many people do live in communities with HOA's and, in Florida, we have a great many HOA's.

We have an office condo. I am on the board of directors. We have tweeked our budget and cut costs to the last penny. Tomorrow evening we will be telling all the unit owners that we are over $9,000 in the red. Insurance costs and related costs have eaten away our reserve. We have four tenants who are 3 months in arrears. Business has been bad for many, but fortunately, we don't have any units in forclosure - in fact our financial health is good, just not good enough. We need to do a great many repairs, etc. which will have to wait.

There are thousands of HOA's across the state that are in dire straits as reflected in the article. It will be interesting to see what type of remedy is in the offering. Maybe there needs to be a supplemental insurance made available to cover such occurences.

[TANaples]

Good and bad with my husband's condo. Yes, his since I signed off on owning it. The HOA had a rule which prevented renting to the same person for more than 6 months. The complex, especially the older building, is almost empty due to foreclosures and short sales. Because of this, the HOA keeps raising the monthly maintenance to make up the difference. Talk about cutting off you nose to spite your face.

Good news: The HOA recently voted to eliminate the 6 month rental clause. You can now rent to the same person for 6 months, with a renewable 6 month plus lease. Hello? Maybe if all these people could RENT their units for more than 6 months, they wouldn't be in foreclosure and not paying the HOA fees.

At least in Naples, there are so many developments, that it is almost impossible to avoild HOA's.

[SoFLGal]

Originally Posted by JimMe

Could you comment on the relative difficulty in selling a HOA home and one that is not burdened by a HOA?

It's really a matter of personal preference. Some people don't like them and some people do. I think some HOA's get a reputation in the community one way or another which might effect what people think or if they want to buy in a certain community.

Many people choose a location due to the school district, proximity to the beach, price of the homes, etc. Usually the HOA is not as far up as those three factors.

[annerk]

Originally Posted by eagle7

HOA communities are terrible. Snitches & snoops are everywhere. Get a lil oil on your driveway & they write you up. I would never live in a gated & controlled community.

So don't, but stop complaining about them when you don't even live in one. Geesh!

[TimThigpen]

HOA's are trouble majority of the time. If I was going to live under one I would spend a lot of time looking into it. I would know what I was getting into. Take time to try and speak to people who live in the community and get their opinion on it.

[imagardener]

Originally Posted by TimThigpen

HOA's are trouble majority of the time. If I was going to live under one I would spend a lot of time looking into it. I would know what I was getting into. Take time to try and speak to people who live in the community and get their opinion on it.

We bought into a Naples HOA after 5 years of renting thinking we knew everything about the community. We didn't.

HOA's are a constantly changing beast. Get different people on the board of directors and things change, quickly. And not for the better in our case.
Board members are owners who are pretty much ignorant of what the HOA laws are and they do what they want to do and defy anyone to stand up and tell them they are wrong.

You'll say: "Run for the board. Get involved."
No thanks, that's not how I want to spend my retirement, keeping people on the right track. I could see years and years of watchdogging, attending every meeting (miss one and they'll pass a new stupid illegal rule).

They get to spend my money with no restraints.

It was not an easy decision but we sold and bought a non-HOA home and it is HEAVEN. Great neighbors. Great town.Wish we could've missed the HOA pain but it was a learning experience. Never again. Free at last...

[scjoe]

So if a house in a HOA subdivision is foreclosed on, doesn't the bank become responsible for the HOA dues?

[freedomlibertarian]

One would think that the bank should be responsible for the dues. But my guess they figured out a way around that. So the bank doesn't lose more money.

Also your right, new people in charge that don't follow the HOA rules and do whatever they want. Does that sound familiar. OUR GOVERNMENT doing the SAME THIIIINNNNNG. DUh

[imagardener]

Originally Posted by scjoe

So if a house in a HOA subdivision is foreclosed on, doesn't the bank become responsible for the HOA dues?

Not until they actually take title which many banks do not want to do because of all the bad real estate on their books.
Also I think they only have to pay a certain amount of HOA fees in arrears, not the whole amount. C'mon, you know who is making the rules don't you?
It's called the "Golden Rule", those with the gold make the rules.