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Erma - I'm curious. How do people get sucked in? Can you not get a look at the 'rule book' before buying in a particular HOA? That would make me very nervous. How does it work anyway - do the other homeowners have to approve of you or something before you can buy? (I'm guessing that's not the case but I don't know anything about HOA's, being from MA, and I guess anything is possible!)
This is what I got off of the wikipedia site to help you understand what happens in HOA's and why AARP is fighting them.
homeowners' association is incorporated by the developer prior to the initial sale of homes, and the Covenants, Conditions, and Restrictions (CC&Rs) are recorded when the property is subdivided. When a homeowner purchases a home governed by an HOA, the CC&Rs are included with the deed.
Like a city, associations provide services, regulate activities, levy assessments, and impose fines. Unlike a municipal government, homeowner association governance is not subject to the Constitutional constraints that public government must abide by.[6] Some of the tasks which HOAs carry out would otherwise be performed by local governments. A homeowners' association can enforce its actions through private legal action under civil law.
Association boards appoint corporate officers, and may create subcommittees, such as "architectural control committees," pool committees and neighborhood watch committees. Association boards are made up of volunteers from the community who are elected by owners at the annual meeting to represent the association and make decisions for all homeowners.
Homeowner associations can compel homeowners to pay a share of common expenses, usually per-unit or based on square footage. These expenses generally arise from common property, which varies dramatically depending on the type of association. Some associations are, quite literally, towns, complete with private roads, services, utilities, amenities, community buildings, pools, and even schools. Many condominium associations consider the roofs and exteriors of the structures as the responsibility of the association. Other associations have no common property, but may charge for services or other matters. Assessments paid to homeowner associations in the United States amount to billions of dollars a year. [7]
An HOA provides people with shared neighborhood values an opportunity to enforce regulations, consistent with overriding statutory constraints, to achieve a community representative of such values. In doing so, an HOA inherently restricts the freedoms that would otherwise exist for its members based on municipal codes. For instance, a degree of conformity is often required in exterior appearance of single family homes and there are often time limits and/or restrictions to activities generating noise. There are pre-existing rules in the form of CC&Rs and bylaws that a buyer has a right and an obligation to view before entering such a community, that also prescribe methods for modification of these regulations.
These bylaws are largely limited in various degrees by state laws, with some overriding federal judicial or statutory limits. For instance, based on a Supreme Court decision, no HOA can prohibit signs advocating political positions, however, such signs may be limited to private property display and may not be displayed in common areas. On the other hand, HOAs do have authority to prohibit the display of commercial signs, both on community property, private property and often on private vehicles. In every association, board members and officers are chosen by election from its property owner-members, with the ability in some states for the membership to remove board members even during term.
Many homeowners' associations include management of a community's recreational amenities, maintained for exclusive use of its members. This can allow an individual homeowner access to a maintained pool, clubhouse, gym, tennis court or walking trail that they may not be able to otherwise afford or desire to maintain on their own.
Each member of a homeowners' association pays assessments that are used to cover the expenses of the community at large. Some examples are landscaping for the common areas, maintenance and upkeep of community amenities, insurance for commonly-owned structures and areas, mailing costs for newsletters and other correspondence, employment of a management company or on-site manager, security personnel and gate maintenance, and any other item delineated in the governing documents or agreed to by the Board of Directors.
Some residents are happy to have a governing body in place to enforce shared values and community standards. A survey of 709 people by Zogby International showed that for every owner-member who rated the overall experience of living in a community association as negative, seven saw it as positive. [8][9][10]
But another survey of 3,000 people living in homeowners associations found that two-thirds of them found their HOAs were "annoying" or worse.[11] At least 19 percent had been in a "war" with their HOA. Fifty-four percent of the respondents said they would rather live with a sloppy neighbor than deal with an HOA. Twenty-four percent responded positively about an HOA.
Advocates often maintain that people choose to live in HOAs, but some note that "choice" is misleading. In reality HOAs have been mandated by municipalities for decades either directly or indirectly. This is often accomplished by conditioning plat or other approval on the creation of amenities such as roads, open areas, greenbelts, retention basins, etc. and an obligation to maintain them. Certainly a large percentage of the population has no choice but to live in an HOA. Finding a non-HOA neighborhood of homes built in the last several decades is virtually impossible. The choice for most buyers seeking a newer home is not HOA or non-HOA but which HOA.
The imposition of an HOA accomplishes several benefits for the municipality. First, these amenities may be burdened with property taxes which would not be the case if the amenities were owned by the municipality. Thus the mandated private amenities are cash generators for the municipalities. Second, the municipalities bear no obligation to maintain the amenities given that they are owned by the HOA.
Some scholars and the AARP charge that in a variety of ways HOAs suppress the rights of their residents.[12] Due to their nature as non-profit corporations, HOA boards of directors are not bound by constitutional restrictions on governments, although some critics claim that they are a de-facto level of government.[13]
At their own expense, a homeowner-member may sue a board of directors for perceived breach of duty,. Association insurance provides not only for a board member's legal expense, but any judgment attained against them.[citation needed] Homeowners must pay out of pocket for any case they bring to court and risk being personally liable for any judgment and/or Association's legal fees as well as their own the prevailing party being responsible for liability and legal expenses when judgement rendered.
Corporation and homeowner association laws provide a limited role for HOA homeowners.[14] Unless either statutory law or the corporation's governing documents reserve a particular issue or action for approval by the members, corporation laws provide that the activities and affairs of a corporation shall be conducted and all corporate powers shall be exercised by or under the direction of the board of directors.
Critics argue that homeowner associations establish a new community as a municipal corporation without ensuring that the residents governed will have a voice in the decision-making process.[15] Voting in a homeowner association is based on property ownership,[16] per the by-laws and covenants of each association. Only property owners are eligible to vote in elections, and voting by renters is prohibited, since the association has contractual agreements solely with owners. Additionally, only one vote per unit may be cast, rather than one vote per adult occupant, so that voting representation is equal to the proportion of ownership.[17] In the case of partially built out subdivisions in resort areas with a homeowners association, the majority of property owners may not live in the community. Homeowners have challenged political speech restrictions in associations that federal or state constitutional guarantees as rights, claiming that certain private associations are subject to the same constitutional restrictions as municipal governments.
However, in general, courts have held that private actors may restrict individuals' exercise of their rights on private property, especially considering that individuals are under no obligation to build or purchase private property in a planned unit development governed by a homeowners' association. Any individual considering such a purchase has not only the right but the obligation to read associated governing documents carefully. A recent decision in New Jersey held that private residential communities had the right to place reasonable limitations on political speech, and that in doing so, they were not acting as municipal governments.[18] With few exceptions, courts have held private 'actors' are not subject to constitutional limitations — that is, enforcers of private contracts are not subject to the same constitutional limitations as police officers or courts. In 2002 the 11th Circuit Court of Appeals, in in Loren v. Sasser, declined to extend Shelley beyond racial discrimination, and disallowed a challenge to an association's prohibition of "for sale" signs. In Loren, the court ruled that outside the racial covenant context, it would not view judicial enforcement of a private contract as state action, but as private action, and accordingly would disallow any First Amendment relief.[19] In the Twin Rivers case, a group of homeowners collectively called "The Committee for a Better Twin Rivers" sued the Association, for a mandatory injunction permitting homeowners to post political signs and strike down the political signage restrictions by the association as unconstitutional. The appeals court held the restrictions on political signs unconstitutional and void, but the appeals court was reversed by the New Jersey Supreme Court overturned the Appellate courts decision in 2007 and reinstated the decision of the Trial Court. The Court determined that even in light of New Jersey’s broad interpretation of its constitutional free speech provisions, the "nature, purposes, and primary use of Twin Rivers property is for private purposes and does not favor a finding that the Association’s rules and regulations violated plaintiffs’ constitutional rights." Moreover, the Court found that "plaintiffs’ expressional activities are not unreasonably restricted" by the Association’s rules and regulations. Finally, the Court held that "the minor restrictions on plaintiffs’ expressional activities are not unreasonable or oppressive, and the Association is not acting as a municipality."
The New Jersey Department of Community Affairs reported[20] these observations of Association Board conduct:
“It is obvious from the complaints [to DCA] that that [home]owners did not realize the extent association rules could govern their lives.”
"Curiously, with rare exceptions, when the State has notified boards of minimal association legal obligation to owners, they dispute compliance. In a disturbing number of instances, those owners with board positions use their influence to punish other owners with whom they disagree. The complete absence of even minimally required standards, training or even orientations for those sitting on boards and the lack of independent oversight is readily apparent in the way boards exercise control"
Overwhelmingly ... the frustrations posed by the duplicative complainants or by the complainants’ misunderstandings are dwarfed by the pictures they reveal of the undemocratic life faced by owners in many associations. Letters routinely express a frustration and outrage easily explainable by the inability to secure the attention of boards or property managers, to acknowledge no less address their complaints. Perhaps most alarming is the revelation that boards, or board presidents desirous of acting contrary to law, their governing documents or to fundamental democratic principles, are unstoppable without extreme owner effort and often costly litigation.
Certain states are pushing for more checks and balances in homeowners' associations. The North Carolina Planned Community Act,[21] for example, requires a due process hearing to be held before any homeowner may be fined for a covenant violation. It also limits the amount of the fine and sets other restrictions.
California has severely limited the prerogatives of boards by requiring hearings before fines can be levied and then limiting the size of such fines even if the owner-members do not appear. Any rule change made by the board is subject to a majority affirmation by the membership if as few as five percent of the membership demand a vote. This part of the civil code[22] also ensures that any dissenting individual who seeks a director position must be fully represented to the membership and that all meetings be opened and agenda items publicized in advance.
Most homeowners are subject to property taxation, whether or not said property is located in a planned unit development governed by a homeowners' association. Such taxes are used by local municipalities to maintain roads, street lighting, parks, etc. In addition to municipal property taxes, individuals who own private property located within planned unit developments are subject to association assessments that are used by the development to maintain the private roads, street lighting, landscaping, security, and amenitites located within the planned unit development. The proliferation of planned unit developments has resulted in a cost savings to local governments in two ways. One, by requiring developers to build 'public improvements' such as parks, passing the cost of maintenance of the improvements to the common-interest owners, and two, by planned unit developments being responsible for the cost of maintaining infrastructures that would normally be maintained by the municipality.[23]
In some U.S. states, including California and Texas, a homeowners association can foreclose a member's house without any judicial procedure in order to collect special assessments, fees and fines. Other states, like Florida, require a judicialhearing. Foreclosure without a judicial hearing can occur when a power of sale clause exists in a mortgage or deed of trust.[24]
A report self-published by a professor at Washington University disputes the claim that HOAs protect property values, stating, based on a survey of Harris County, Texas (which had an unusual legal regime regarding foreclosures): “Although HOA foreclosures are ostensibly motivated by efforts to improve property values, neither foreclosure activity nor HOAs appear linked with the above average home price growth.”[25]
Homeowners association boards can also collect special assessments from its members in addition to set fees, sometimes without the homeowners' direct vote on the matter, though most states place restrictions on an association's ability to do so. Special assessments often require a homeowner vote if the amount exceeds a prescribed limit established in the Association's by-laws. In California, for example, a special assessment can be imposed by a Board, without a membership vote, only when the TOTAL assessment is 5 percent or less of the association's annual budget. Therefore in the case of a 25 unit association with a $100,000 annual operating budget, the Board could only impose a $5,000 assessment on the entire population ($5,000 divided by 25 units equal $200 per unit). A larger assessment would require a majority vote of the members. In some exceptional cases, particularly in matters of public health or safety, the amount of special assessments may be at the board's discretion. If, for example there is a ruptured sewer line, the Board could vote a substantial assessment immediately, arguing that the matter impacts public health and safety. In practice, however, most Boards prefer that owners have a chance to voice opinions and vote on assessments.
Increasingly, homeowner associations handle large amounts of money. Embezzlement from associations has occurred occasionally, as a result of dishonest board members or community managers, with losses up to millions of dollars.[26] Again, California's Davis-Stirling Act, which was designed to protect owners, requires that Boards carry appropriate liability insurance to indemnify the association from any wrong-doing. The large budgets and expertise required to run such groups are a part of the arguments behind mandating manager certification (through Community Association Institute, state real estate boards, or other agencies).
The AARP has recently voiced concern that homeowners associations pose a risk to the financial welfare of their members. They have proposed that a homeowners "Bill Of Rights" be adopted by all 50 states to protect seniors from rogue Homeowner Associations.[27]
There are some neighborhoods under $300,00 that are still nice. What you probably won't get, however, are the big yards, brick houses, or a stable neighborhood in many cases. Pine Meadows and Red Mill are both decent, but very transient since they are near the Navy base. You can find homes under $300 there still, although many are over that amount. If you go to Realtor.com and put in the area codes of 23454 you should pull up that area. Try 23452 also. It is a big zip code, but if you look under Realtor.com you will find some homes under $300,00 that are still in a nice area but not the best. For example, the listing for Prince of Wales home. Not a bad area at all. Under $300,000. Small neighborhood, no homeowners association. Convenient, too. Very close to terrific but expensive neighbhoods. But there are many listiings in the same zip code in the $200,000s that I would not be living to buy in that are not so nice and not in the ballpark of the desirable area.
Just a stones throw away there is another house you can find on there for $322,000 on Queen Elizabeth. This is a good deal! Most of the houses in this neighbhorhood (back of King's Grant) are bigger and on crawl spaces. It has arguably the best elementary school in the city, and a great neighborhood. With the bad real estate market, this one was reduced from $349,000. So if you look around you can find some deals. Most houses back here got for way more than that. Definitely mess around with Realtor.com. Coming from MA though I would stay in the 23454 area if I wanted to stay under $300,000 or go to that area around Prince of Wales (it is on the side of King's Grant -- not in the back). I know this must sound confusing!
There are some neighborhoods under $300,00 that are still nice. What you probably won't get, however, are the big yards, brick houses, or a stable neighborhood in many cases. Pine Meadows and Red Mill are both decent, but very transient since they are near the Navy base. You can find homes under $300 there still, although many are over that amount. If you go to Realtor.com and put in the area codes of 23454 you should pull up that area. Try 23452 also. It is a big zip code, but if you look under Realtor.com you will find some homes under $300,00 that are still in a nice area but not the best. For example, the listing for Prince of Wales home. Not a bad area at all. Under $300,000. Small neighborhood, no homeowners association. Convenient, too. Very close to terrific but expensive neighbhoods. But there are many listiings in the same zip code in the $200,000s that I would not be living to buy in that are not so nice and not in the ballpark of the desirable area.
Just a stones throw away there is another house you can find on there for $322,000 on Queen Elizabeth. This is a good deal! Most of the houses in this neighbhorhood (back of King's Grant) are bigger and on crawl spaces. It has arguably the best elementary school in the city, and a great neighborhood. With the bad real estate market, this one was reduced from $349,000. So if you look around you can find some deals. Most houses back here got for way more than that. Definitely mess around with Realtor.com. Coming from MA though I would stay in the 23454 area if I wanted to stay under $300,000 or go to that area around Prince of Wales (it is on the side of King's Grant -- not in the back). I know this must sound confusing!
Hokie - once again, thanks for the great info. I went to Realtor.com. It could be a bit more user friendly - like it would be nice to choose the subdivision in your search, like you can w/the area code, or check off a box saying yes or no to a HOA. Anyway, from there I think I found one in Red Mill so I took the address and went to mapquest to find it's location (is there an easier way to do this?) and it looks like it's close to Oceana naval air station (that's probably the navy base you're speaking of). My concern is - would you hear jets all the time?
Yes, the closer to Oceana Naval Station, the louder the jet noise. Most of the time, there is a noise rating in the realtor discription. You can also go to various realtor sites. Prudentialdecker.com, williamewood.com etc. etc. Plug in your price desires and you should be able to access the neighborhood information about the property.
A question was asked a few posts earlier in this thread about getting to see the homeowners association "rule book" before buying. If there is a homeowner's association, part of the standard contract for this area requires a property owners contingency addendum. After the initial terms of the contract are agreed upon, prior to closing the seller must provide a current copy of the all of the association rules, as well as the financial disclosures for that neighborhood to show the current financial status and if there are any big projects (special assessments) pending, etc. Once this disclosure packet is received by the buyers' agent, there is a 72 hour review period for the buyer. If the buyer doesn't like something that is contained in that packet, the buyer has a right to void the contract. After 72 hours, the contract proceeds forward.
If you don't want to live in a neighborhood that charges fees, your agent can easily set up a search in the MLS to exclude those properties.
I like home owners associations. From my experience neighborhoods with HOA fees TEND to have better kept up yards, kept up houses, and just had a "cleaner" feel. You don't have to those crazy neighbors who paints their house neon orange and their shutters purple or the jerk next door who's grass is 3 feet high.
I like home owners associations. From my experience neighborhoods with HOA fees TEND to have better kept up yards, kept up houses, and just had a "cleaner" feel. You don't have to those crazy neighbors who paints their house neon orange and their shutters purple or the jerk next door who's grass is 3 feet high.
I agree....I have never been a big fan of HOA neighborhoods but the neighborhood I live in now is under a HOA...just something I knew I had to deal with if I wanted to live in this certain neighborhood
I have had a few disagrements with the board over the years but nothing that could not be worked out with little effort on my part...
As far as the poster complaining about the size of the house numbers they may be mistaken....HOA rules and regulations can not supersede any city code....If the city code states that house numbers must be larger then 3 inches in height and must be able to be seen from the street...then the HOA can not demand anything less or more and must follow how the city code is written......
Where HOA's can come into play is the design and layout of the neighborhood...things like exterior house colors and finishes, types of fencing, placement and types of pools, sheds or outbuildings etc are things that can come into play and be controled by HOA's
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neighborhood maps
