Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Here in the Bay Area if you buy a small condo, then you have to pay about $600 a month (or $100k in 15 years) for HOA fees. If you but the same condo in Europe or UK then you pay maybe $6 a month. In most apartments there is not really any useful service they provide. Especially in city blocks that have very little green and no pool. Sometimes the HOA hires overpriced services as they could care less about cost, as they don't pay it themselves. So, where does all that money go? It looks like the building construction company and their friends profit from the building many years after they finished the construction.
Is it possible for a whole block to decide together that they quit the HOA, or to make their own non-profit HOA from resident members only?
In a condo, the HOA would be responsible for anything structural or exterior, so they have to build up a reserve for when the roof, siding, landscaping, paving, carports, hallway carpeting, stairs, fire escapes, or anything else needs to be replaced/repaired.
I have heard of HOAs being dissolved. I know the Corporation can just not pay corporate dues and not exist as a corporation. But there's also the CC&Rs recorded with the land records. Don't know how it works going back that far.
But I do know people who want to leave an HOA.
So, couple of things. Are you talking about actual fact of your life or just wondering about how this could work for anyone in general?
If about you, is there anything in common you'd miss? And how would it be taken care of?
What about the roof and siding....would units that share these be among those breaking away? If so, how would you all come together on these issues.
I do know about the board or mgr overspending. The one I was in recently did not get three estimates until the last few years when some residents insisted. They did hire friends and children of old friends. I don't mind that if it's all fair across the board and the person does a great job. But it wasn't like that. And ego seemed to go in to their desire to be able to be in charge of money and spending too.
And, big thing. Check your financials. They should be readily available either at regular meetings or by going to an office for them. What is taken in, what is spent and what it is spent on. What is done each month. What is the annual budget. A reserve study is good, especially when done by a good professional who states the life of items...the mechanics, roof, siding, etc of your building. So you'll be able to see what money is used monthly and what is being saved up for future very large expenses.
If the monthly fee is the same for everyone, divide it by number of units to see that everyone is paying. Friends were surprised lately to find that a board member never paid his monthly dues. This, after the same thing happened with a resident a couple of years ago.
I do like to remember the factual and psychological issue with the term hoa. When we say the hoa is overspending, we're saying our homeowner association is overspending. I like to pinpoint it more accurately and say the board is overspending or the president is overspending or the manager they let loose on this is overspending. (Or, more precisely if possible, I went to the board meeting where they said they got one estimate and were not going to get more.) Some people feel all residents agree with whatever good or bad thing comes out of a HOA community when that is just not so as you know.
I vacationed in a condo in Hot Springs Village last spring. We talked to one of the residents, who told us that the condo complex fee (on TOP of the general HSV POA fee of almost $40/month) was 80-something dollars a month.
Not bad, one would say....until you find out that the only thing the condo association does is maintain the grounds. Roof springs a leak? Fix it yourself! Board rotting on the eaves? Fix it yourself! Gutters (on a two-story building) stopped up? Clean them out yourself! Need new siding? Get it yourself! There were several condos in the complex with siding that was a different color from the rest. So, sheesh, 80+ dollars a month year 'round just for lawn care? Not I! (And I noticed that many of the residents had planted their own shrubs, small trees, flowers....I'm sure they have to maintain those themselves also.)
Our HOA (subdivision) pays for pool maintenance and lifeguard staff, landscaping in public areas, the upkeep of the playground, upkeep of the tennis courts, upkeep for boat storage area, as well as maintenance of the clubhouse. They also host parties a few times a year for the neighborhood (i.e., sleigh rides at Xmas, egg hunt at Easter, Valentine's Day dinner for just the adults, etc.).
Your HOA should provide you with financial statements upon request. You are an "owner" in the HOA so its your info to request.
Exactly. You should be looking at the budget and seeing exactly what that condo fee is buying you. Every penny should be allocated to a line item, and if you don't understand what something is, then you ask more questions. There should not be any unallocated money that is going to profit, other than the normal profit earned by the people who provide goods and services to the HOA.
Exactly. You should be looking at the budget and seeing exactly what that condo fee is buying you. Every penny should be allocated to a line item, and if you don't understand what something is, then you ask more questions. There should not be any unallocated money that is going to profit, other than the normal profit earned by the people who provide goods and services to the HOA.
The above is reality! --- An amazing number of folks, however, have a lot of unrealistic (and incorrect) notions about HOA's and their fees (as though the HOA was some type of separate, for-profit organization. Once the property is turned-over from the developer to the owners, the HOA Board is thereafter, comprised entirely of elected property owner-members of the HOA. HOA (board/members) ARE spending their own money and that of other owners, and are accountable to the members of the HOA!
Any member can examine a line-item operating budget and 'Reserve' statement. ALL of the incoming dues should be allocated. One can also began to do a realistic comparison between HOA dues AND the comparable cost of the same services/maintenance, etc. for a SF home. We've always paid between $500 and $750 per month, which I've calculated within 10-15-percent of comparable SF home costs. HOA reserves are calculated in advance of the anticipated expenditure to ensure that the money is there, when the cost is incurred.
HOA fees and assessments can increase, without a corresponding increase in services, when some HOA members are delinquent in their fees (or go into foreclosure) ...and other members must make-up the shortfall.
Our HOA (subdivision) pays for pool maintenance and lifeguard staff, landscaping in public areas, the upkeep of the playground, upkeep of the tennis courts, upkeep for boat storage area, as well as maintenance of the clubhouse. They also host parties a few times a year for the neighborhood (i.e., sleigh rides at Xmas, egg hunt at Easter, Valentine's Day dinner for just the adults, etc.).
Another thing is most complexes are built with shared pools, shared clubhouse... I would never use these facilities. It seems they have a built-in luxury country-club, that is so unnecessary for most people. Forcing people to pay for services they don't need can increase HOA fees a lot. What is an unnecessary service for me, is a big business opportunity for someone else. And, I don't want to hang out with all my neighbors all the time either.
At some other places in the same town they ask for the same amount HOA fee, even though there is not pool or club house, offering the same market price, as most people just want the condo anyway and don't care about the extra common features. So it is like a market speculation driven fee.
Quote:
Originally Posted by jghorton
The above is reality! --- An amazing number of folks, however, have a lot of unrealistic (and incorrect) notions about HOA's and their fees (as though the HOA was some type of separate, for-profit organization. Once the property is turned-over from the developer to the owners, the HOA Board is thereafter, comprised entirely of elected property owner-members of the HOA. HOA (board/members) ARE spending their own money and that of other owners, and are accountable to the members of the HOA!
By the time you buy a condo, the complex already has it's "elected" officials. Are you sure that the "election process" has nothing to do with being friends/relatives of the building constructor?
Still, how come that in other developed countries people pay 1% as much (landscaping a small common front garden, electricity for elevators and common lighting, cleaning of corridors) as here in CA/BayArea? Incomes are not 1% in those countries. Buildings need the same amount of repair everywhere, and those in Europe are not in worse shape than the ones here. In Europe what I heard was that if a big repair is needed (once in 20 years), then people all agree in who will do the contract job the all pay up. Making reserves based on estimates is unnecessary. Sometimes they repair things that are not broken, and for a high cost, and profit for their fiends (khhhm contractors).
Being in charge of these HOAs: sounds like a political game, power hungry people get into these HOA boards and push other people away. Even possibly get pocket money from the contractors for awarding them with contracts with bloated prices.
Another big expense that people don't think about is insurance. In our association at least, the HOA needs to insure the building(s) and all of the common areas including pool and spa. Also, since we are in CA, there is a separate earthquake policy. These policies are not inexpensive.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
