Are HOA Dues a Rip-Off? (foreclosed, deductible, payments, non profit)
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I would just find out how restrictive they are. If you're patriotic and/or a veteran, do they allow American/POW/MIA flags? Would they allow you to fly a flag that represents your heritage (Irish, for example)? Do they restrict your right to display a sign for the political candidate of your choice at election time? If you have a pickup, is it allowed to be in the driveway? It's that kind of crap that torques my bolts...
These are good questions for me to ask the rep at the sales office about
the restrictions. Thanks! We are retired Air Force as are alot of others
in the development,so, we would like to fly the flag! Dont care to much about
the political candidate signs, and will ask about parking in the driveways. We have been out there umpteen times and havent taken notice of those things
but now we will.
HOAs are power hungry entities that work a lot like goverment. They take your money do enough so you don't complain, meet and gosip about everyone, then if they don't like you they look at there secret decoder book for contract got-ya clauses and threaten you if you are a vetern that by having an United States flag up in your front yard you are in violation and charge you each day and if you don't pay they put a lein on your home. (I say this because I had a House up in Dallas and this is what they did to the guy not shortley after 9-11; oh, he was disabled and blind from when he served our great nation)
HOAs are power hungry entities that work a lot like goverment. They take your money do enough so you don't complain, meet and gosip about everyone, then if they don't like you they look at there secret decoder book for contract got-ya clauses and threaten you if you are a vetern that by having an United States flag up in your front yard you are in violation and charge you each day and if you don't pay they put a lein on your home. (I say this because I had a House up in Dallas and this is what they did to the guy not shortley after 9-11; oh, he was disabled and blind from when he served our great nation)
Hmm...? Thats painting HOAs with quite a broad brush. Check out the
regs before buying I would say.
These are good questions for me to ask the rep at the sales office about
the restrictions. Thanks! We are retired Air Force as are alot of others
in the development,so, we would like to fly the flag! Dont care to much about
the political candidate signs, and will ask about parking in the driveways. We have been out there umpteen times and havent taken notice of those things
but now we will.
Greenchili
Florida law prohibits HOAs from forbidding flying the American flag.
HOAs in most states can still prohibit campaign signs, though.....just received my second violation notice And I'm on the board!
It was initiated by Sentry Management, not the board....funny thing, no one here who has had a sign supporting the other party has ever received a notice for a campaign sign...probably a coincidence, but the president of Sentry Management is a big contributor to candidates of that other party.
I've only read to page nine right now, but has anyone thought about the fact that it multi family scenarios, the HOA budget, 90% of the time, INCLUDES insurance on the common areas and on the buildings themselves? as well as a workers compensation policy, DNO insurance, an umbrella policy, wind & hail coverage, earthquake coverage, etc?
Insurance and landscaping are nearly ALWAYS the two highest percentages of the annual budget of any Association.
After reading thru the posts, I have a simple solution... all the folks who HATE HOA's and feel that they are COMMUNISTS, RIP OFFS or whatever you feel to call them... move out to the country, or anywhere you can find a parcel of land that will accommodate your particular needs, build or buy a home, and enjoy life? Why in the name of God would you stay in a place that, obviously, makes you so bitter and resentful?
I'm not advocating that HOA's are all perfect, in fact, they are far from it. HOA's are NON PROFIT INCORPORATIONS run by VOLUNTEERS who, often times, don't have a full understanding of the term 'for the greater good of the COMMUNITY really means. In addition, many BOD members have no business knowledge. To this degree, a BOD can be quite detrimental to an Association in a relatively short amount of time. Professional Management companies can help with proper guidance and with the day to day operations of the association. The trouble with Mgmt companies is that, more oft than not, they have THEIR best interest at heart, and can discreetly blindside the BOD and the homeowners if a system of checks and balances isn't in place.
I'd also be curious, as a test question, to any of you who adamantly speak out against HOA's - Have you ever served on a Board of Directors, advisory committee, etc, for your (or any) HOA? If you can't be part of the solution, don't be part of the problem.. ;-)
Last edited by rrufast; 12-25-2007 at 09:21 PM..
Reason: addition to post
Sounds like you are talking about a condo. Are you buying? Read the project before you buy. Some of the money goes into a reserve fund to pay for exterior repairs. If there is not enough in the reserve to pay for a new roof, for example, they can assign special assessments. Who is in control of the HOA is anothergood question to ask.
Single-Family Homes vs. Condo/Townhouses: exceptional HOAs
Quote:
Originally Posted by katie45
Wow! $20/mo HOA dues! That is something anyone should be able to live with. You are very fortunate!
To understand the situation requires some differentiation between the types of common areas that HOAs need to maintain and the services they provide members. Whether the HOA is volunteer or professionally managed also affects the rates.
Townhouse and condominium associations are very often responsible for the building components, like roofs, decks, fences, sometimes streets, in addition to clubhouses and pools. Some dues include monthly activities, like parties, water, sewage and garbage for all units and so on.
For example, a condo in downtown Dallas may pay for basic cable, all water-sewer-garbage, hallway cleaning in addition to exterior landscaping, roof, parking lot and fences, carpet and painting, plus security guards at the door or lot entrance. A $200/month charge for these situations is actually quite reasonable.
Single-family subdivisions, on the other hand, don't maintain individual homes, just the pool/clubhouse. Often they exercise architectural control to prevent purple-striped houses, but because the association is often run by the volunteers, the rules are somewhat subject to interpretation and complaints of favoritism.
On the other hand (yes, that makes 3), professionally run associations pay a pretty penny for having someone else manage billing & collections, enforce architectural rules "fairly" and cover board members' assets with E&O insurance. It is not unheard of to see half the dues pay the management company, another chunk for director insurance and actual expenses of only a quarter of all the collections.
If you suspect that I think professionally managed HOAs are a rip-off, you'd be right. Often they pocket fines by arranging with the HOA board to be paid for warning letters to violators. Okay, they may not be pocketing the fine, but they are paid to write letters to members that result in fines. Same thing. Collection fees are often ridiculously expensive, too, violating usury laws.
Some boards fear and avoid being sued by intervening a management company at great expense. This attitude leads to exterior maintenance policies in a similar vein of risk-avoidance. An upstairs balcony on units may be removed from all units because one failed due to lack of sealing maintenance.
Only the individual unit owners are assessed for such exterior maintenance -- and they do not get a vote -- they're just assessed for a contractor to come out and remove their balcony. Trees and shrubs are the same way.
Fear of being sued goes a long way to preserving management companies in power and the pervasive dislike of HOAs. The high cost of management, the high cost of liability insurance, and the preventive liability policies make HOAs anathema. Small volunteer-run HOAs do not have these problems.
Volunteer-run HOAs make mistakes, fail to set aside money for maintenance, act unfairly by treating members differently, but they are cheaper and more responsive to members. As others have said: get involved or live with the mistakes and unfairness. If they're professionally managed: live with it or get out (suing them is hard).
It is true that some volunteer-run HOAs are efficient, fair and effective, and that some professionally managed HOAs are, too. They are the exceptions.
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And I'm on the board!
Single-Family Homes vs. Condo/Townhouses: exceptional HOAs
