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I am looking at a SF house in a development, which requires all owners to pay $55/month to HOA. Why these SF house owners want to form a HOA to take care of the "common area"? Isn't that the job of the local government which your property taxes go to? Are there any draw backs for buying a SF house in a community with HOA? Will the HOA restrict certain activities, such as plant a tree or grow some vegetables in my back yard?
I am looking at a SF house in a development, which requires all owners to pay $55/month to HOA. Why these SF house owners want to form a HOA to take care of the "common area"? Isn't that the job of the local government which your property taxes go to? Are there any draw backs for buying a SF house in a community with HOA? Will the HOA restrict certain activities, such as plant a tree or grow some vegetables in my back yard?
Yes, maintaining common areas is a function of the local government unless you're in a HOA community. The HOA may also plow interior streets in the development or perform other maintenance on the roads. And street lights would also be paid for by the HOA.
Many say that having a HOA regime helps to maintain property values to a greater extent than not having one, the immediacy of notice by neighbors, stricter design standards, etc. HOAs can also be somewhat selective in residents, that goes back to the property value belief.
And yes, a HOA can limit what you do. You may not be allowed to have certain colors on your house if you repaint, you may have a plantings chart which lists approved plants. You might not be allowed to have a trailer in your driveway, or store a boat on your property or park outside of your garage. It might limit the type and number of dogs you own, require a certain type of trash can or prohibit parking on the street.
Buying in a HOA regime is a personal choice and is partially determined by your tolerance for another level of control past the local government codes. While property taxes are deductible HOA fees are not.
As a local elected official I have to say that most governments like having them, it takes the cost of maintenance off the general tax payers. On the other hand, HOAs can be a pain to deal with when the residents don't understand the differing responsibilities. Many ask the same question you did, "If I'm paying HOA dues where do my taxes to the Town go and why do I have to pay dues?".
The answer is, they go to the General fund of the Town to pay for Police, streets and other municipal functions. You pay HOA dues because you chose to buy in a HOA development. That was your choice.
Before you get in too deep, check out the HOA rules and see if you can comfortably live with them. Some of them (and condo associations) are ridiculously oppressive and can't wait to slap a fine on you for something as simple as not keeping the blades of grass on your lawn under the mandated 2" max height!
Those "common areas" are typically owned by the HOA not the local municipality, so yes, it is the neighborhood's job to maintain them. That could be lakes, walking trails, pools, playgrounds, tennis courts, clubhouses, entrances, etc.
Be sure and get all the HOA docs, including the CCRs and the bylaws. See who is currently governing...does the developer still hold control, or has control been turned over to the homeowners. If the developer still holds control, you run a greater risk of him changing the CCRs at his discretion. We've had some issues with that in our area that have cost the homeowners big bucks at the decision on ONE person.
You will also want to look at how the HOA is governed, which should be spelled out in the bylaws. How are major changes dealt with? Does it require majority vote, or at the discretion of the HOA board (a few elected?). I've seen both here.
Most states regulate HOAs, but in AL they don't.....we are working towards that. We just tried to pass legislation at the state level but many of the builders bucked up and the legislation failed.
Just look at an HOA this way.....when you buy in one, you are not just buying your home, you are also buying into that community, and how it is run and what regulations are in place become your "law" and you need to make sure it is being run appropriately, that they have funds in the kitty, disclosure of how they are using those funds, and that you are willing to abide by the "rules".
Sometimes single family home owners might get together to own some things in common, form a HOA and buy some more land for that purpose.
But it seems most HOA communities are already set up like that from the beginning. There's a lot of paperwork, legal work that needs to be taken care of for the concept before building.
Then there's a lot of work that should be taken care of before people move into such a community. As has been said, one needs to check the Covenants and Restrictions as well as the bylaws. Sometimes these are online. Sometimes a purchaser or the seller needs to pay up to a couple of hundred to get the book of them from the HOA office or manager's office.
Most municipalities like having hoas. They take the load off local govt and utilities, depending on what they offer. Some streets are private and therefore plowed or paved by the HOA. Some HOAs will have gates and some will have security or perhaps an unofficial neighborhood watch. They provide recreation when they have their own pools, tennis, walking paths, exercise facilities, grassed areas so a load off Parks Dept.
Some will pay to have geese killed since they bother their lake but the geese like all the area lakes so other nearby areas not in the hoa that are bothered by the geese can feel a free benefit...ps which I find despicable but another topic.
If a lake dam is in the hoa community, that community pays for repairs which others outside the hoa can benefit from...no flooding streets as in the past for one thing and no other govt has to pay for the work.
If an HOA then thy will have Covenants (Deed Restrictions), Bylaws, and Rules & Regulations. Get a copy. Read and understand them. It is critical you understand what association living is all about. There will be restrictions. You will not be able to do anything you want.
I am on my 5th association. I love the life style and controls. Many do not.
I live in an HOA community outside Las Vegas, and love it. Although not overly strict, like others are, it does limit the things we can do. Ours allows parking on the street and in driveways, where others are more strict, prohibiting any parking outside of your garage. Some even disallow leaving the garage door open other than entering and leaving.
But ours makes sure people keep their front areas manicured, makes sure there is no paint or stucco flaking off, etc. It's nice knowing there can't be any "project" cars on jacks in the driveways, garbage cans in the front of the houses, etc. They do control paint colors, so no one is going to have a bright purple house next door. All of this is good, in my opinion.
They maintain the center island trees and rocks, as well as maintaining the walking paths and the pools. We have a "Stepford Wives" neighborhood and that's just the way I like it
You're lucky that you know in advance. My agent told me there were no mandatory covenants
and I didn't learn otherwise until the closing table. A bit too late then.
You're lucky that you know in advance. My agent told me there were no mandatory covenants
and I didn't learn otherwise until the closing table. A bit too late then.
Wow!! I don't know where you live, but in my state a realtor could lose their license for failure to disclose that prior to closing.
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