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We're looking to purchase a home in a new development. According to the information and brochure provided so far, the development will be completed in 3 stages for a total of 30 homes. Five homes have been finished as of now with another five more remaining in phase one. I have requested additional information through my real estate agent about this area along with any other requirements (more covenants)
However, while we wait for this, I have a few questions that some of you that are more knowledgeable can answer. The development states that it has several covenants that any new structure or lot must adhere to such as minimum square footage, garage facing side or rear of housing structure and not allowing animals (domestic and farm) to roam freely. We both really like the area and the school system is highly rated but I am concerned that this is the first step towards a HOA being setup.
1. Once all of the homes are finished and sold, will this development convert to an HOA?
2. What are the possible steps in terms of rejecting this if this occurs? (Another words, would it require unanimous approval or just majority?)
3. What would be any of your concerns in regards to this?
I understand it is best to wait for the additional info but in the meantime, please provide any info that may help me out. If you need some more info, I'll try to provide as much as possible.
We're looking to purchase a home in a new development. According to the information and brochure provided so far, the development will be completed in 3 stages for a total of 30 homes. Five homes have been finished as of now with another five more remaining in phase one. I have requested additional information through my real estate agent about this area along with any other requirements (more covenants)
However, while we wait for this, I have a few questions that some of you that are more knowledgeable can answer. The development states that it has several covenants that any new structure or lot must adhere to such as minimum square footage, garage facing side or rear of housing structure and not allowing animals (domestic and farm) to roam freely. We both really like the area and the school system is highly rated but I am concerned that this is the first step towards a HOA being setup.
1. Once all of the homes are finished and sold, will this development convert to an HOA?
2. What are the possible steps in terms of rejecting this if this occurs? (Another words, would it require unanimous approval or just majority?)
3. What would be any of your concerns in regards to this?
I understand it is best to wait for the additional info but in the meantime, please provide any info that may help me out. If you need some more info, I'll try to provide as much as possible.
I would predict:
1. You will have an HOA, as the structure is probably in place right now with controlling votes held by the developer and or builder.
2. Learn the bylaws and covenants and the provisions of each.
3. My concern would be clarity and transparency, knowing what the future may bring in terms of transfer of control to the neighborhood, and the extent of HOA authority.
I appreciate the responses so far. I trust your opinions and we won't know until the developers/builders/RE agents gives us the entire info on the area, but I'm hoping that I am leaving something important out that would signify otherwise.
I appreciate the responses so far. I trust your opinions and we won't know until the developers/builders/RE agents gives us the entire info on the area, but I'm hoping that I am leaving something important out that would signify otherwise.
I expect there is a set of covenants already in place and is being administered by the builder, meaning he is acting as the Home Owners Association.
Ask for a copy. They will be glad to give them to you.
At sometime the builder must turn HOA control over to the home owners. When can vary from state to state and will be part of the convenants. When the builder turns over the HOA, the home owners will then have an election (probably outlined in the covenants) to elect a Board Of Directors (consisting of fellow homeowners) to over see the HOA.
The more neighborhood amenities (pools, tennis, paths, signs, common (shared) areas, the more money and time it will take to properly run the HOA. Many BOD's will hire a management company to do it for them. My advice no matter how small, hire a management company. You do not want neighbors pitted against neigbors if say one stops paying there HOA dues or has to be fined for violating the covenants, etc.
The one citical issue will be how much money is set aside for major repairs. One rough rule of thumb is it must contain at least 6 months of dues per unit. This money must be there from day one. Obviously a large majority of it will be from the builder. It must be a seperate budget line item and used for repairs only, not day to day operating expenses.
Where I presently live will have about 120 homes with about 100 completed. The developer does not have to turn the HOA over until the last unit is sold. The builder has an advisory BOD of 6 homeowners (selected, not elected) so we have some input, budget, contracts, etc. but we do not have control yet. At out recent homeowners meeting few attended. Some say it is apathy. I say is it contentment. Usually the homeowners only get riled up and attend meetings if there is a problem.
Of course you will always get that ass hat or two neighbor be it an HOA or not. Our HOA maintains all landscaping (yes even the individual homes) but we have one neighbor that flips out over water charges and refuses to water (all have automatic sprinkler systems) his grass. It looks like crap. Our first line of defense has been to talk to him and try to get him to water his grass but he has been politely warned we have the authority to fine him. We will see what happens.
I have lived under HOA's and I like them as they can keep the neigborhood from deteriorating and/or becoming a hodge podge. I have seen similiar developments built at the same time and 10 years later one looks a fine as the day it was build and the other looks like crap. Both as a result of how active the HOA was. Other hate HOA's.
Last edited by accufitgolf; 09-10-2011 at 06:52 AM..
Protective, Restrictive, tomato, tomahto....I call it whatever it says on the front cover of the paperwork I provide to the people that ask for them.
Mornin' Mike.
Come on, Joe...
How often do you see covenants called "Tomato Covenants?" Or "Tomahto Covenants," for that matter?
I have had a LOT of coffee. Java. Etc...
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Restrictive!?
