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I'm researching buying my next home. I'm pretty sure I want a condominium, but I'm not completely ruling out houses, either. Over time, I learned that tract home subdivisions almost always have a home owner's association (hereafter: HOA). Houses on traditional gridded streets usually don't have one. So far, I'd prefer not to have one. It's easier to deal with just one set of cops (city) than two (city + HOA).
In the research process, I've read plenty of horror stories about HOA's. The horror stories were plentiful, ranging from having to fix a broken window (reasonable, even good) to paying a $50 fine for a newspaper left out in the yard (stupid). In that light, it seems like HOA's are just a nuisance, run by people with too much time on their hands, who were bullied in school, and are now delighted to make other people's lives more difficult, not to mention play favorites with certain residents. Plus, charge X dollars per month for the privilege of that. True or not, don't shoot the messenger; I'm just posting what I read in other sources.
But there has to be some tangible purpose to HOA's. Otherwise, they'd be disbanded long time ago. So what do HOA's actually do? What benefit do they provide for residents, outside of enforcing rules? Either way, if I were to buy a house and not a condo, I'd buy one that doesn't have an HOA. But I'm still interested in finding out about its role.
Everything depends on the particular HOA, and what you want.
I am president of our HOA... the only function of our HOA is to maintain our .6 miles of private road with new gravel and grading. We pay dues for that.
There are HOAs who obsess on every small aesthetic detail, so before you move into one of those you have to decide if you're the kind of person who wants to paint your house an unusual color, or the kind of person who wants to make sure your neighbor is NOT the kind of person who wants to paint their house an unusual color.
The purpose is usually stated to protect property values in the neighborhood. Prevent one neighbor from driving values down with junk cars and unkept yard. It's all in the details of the particular HOA. Read them before signing an offer! See if it's the kind of neighborhood you want. I would not plan on being able to change it.
Great question. The purpose of an HOA is to protect the home values for the community by enforcing the Covenants, Conditions, and Restrictions (or CCR's) set forth by the real estate developer. If the association was created prior to 1977, it probably doesn't have as much power as a newer community. You can usually obtain a copy of the deed restrictions to review in advance of making an offer from a title company or real estate attorney.
Great question. The purpose of an HOA is to protect the home values for the community by enforcing the Covenants, Conditions, and Restrictions (or CCR's) set forth by the real estate developer. If the association was created prior to 1977, it probably doesn't have as much power as a newer community. You can usually obtain a copy of the deed restrictions to review in advance of making an offer from a title company or real estate attorney.
That's the stock answer. The REAL answer is that it helps to defray costs of road maintenance from a municipality and thus helps developers get their projects approved by town councils, etc. Since this adds additional tax revenue vis-a-vis residential property taxes but adds little in burden to the town, towns are all too happy to have HOA developments built in their municipalities.
They sell the idea of HOAs to potential homeowners by telling them it will help their real estate value, blah, blah, blah. As you will see with responses on this thread, many, many people truly and genuinely believe their HOA helps their home values. I, on the other hand, am a skeptic. A nice neighborhood is a nice neighborhood with good market value no matter if an HOA is in place or not. I've lived in both - no impact up or down on the market value of my home but living in an HOA is a lot more of a pain in the rear.
That's the stock answer. The REAL answer is that it helps to defray costs of road maintenance from a municipality and thus helps developers get their projects approved by town councils, etc. Since this adds additional tax revenue vis-a-vis residential property taxes but adds little in burden to the town, towns are all too happy to have HOA developments built in their municipalities.
HOAs are put in place to appeal to those who agree with the rules of the HOA and are happy to live within the rules. If it isn't something that sounds like what you are looking for, then don't buy a property in the HOA, simple. HOAs aren't for everyone.
I'm researching buying my next home. I'm pretty sure I want a condominium, but I'm not completely ruling out houses, either. Over time, I learned that tract home subdivisions almost always have a home owner's association (hereafter: HOA). Houses on traditional gridded streets usually don't have one. So far, I'd prefer not to have one. It's easier to deal with just one set of cops (city) than two (city + HOA).
In the research process, I've read plenty of horror stories about HOA's. The horror stories were plentiful, ranging from having to fix a broken window (reasonable, even good) to paying a $50 fine for a newspaper left out in the yard (stupid). In that light, it seems like HOA's are just a nuisance, run by people with too much time on their hands, who were bullied in school, and are now delighted to make other people's lives more difficult, not to mention play favorites with certain residents. Plus, charge X dollars per month for the privilege of that. True or not, don't shoot the messenger; I'm just posting what I read in other sources.
But there has to be some tangible purpose to HOA's. Otherwise, they'd be disbanded long time ago. So what do HOA's actually do? What benefit do they provide for residents, outside of enforcing rules? Either way, if I were to buy a house and not a condo, I'd buy one that doesn't have an HOA. But I'm still interested in finding out about its role.
What you are describing are less than 1% of HOAs. I see that you think you are able to judge the people that run an HOA when you don't know anything about them.
The people that complain about HOAs are usually fools. They buy without reading. They sign without reading. Then they blame others for their own stupidity.
Good answers so far. But like with cops abusing their power in the name of safety, it's not too difficult for HOA's to abuse their power in the name of property values. Those HOA's are the ones that people complain about, which includes posting on the internet. "Seinfeld" even had an episode or two about Jerry's parents' having trouble with their HOA. Honest HOA's that diligently do their jobs get talked about far less often.
That's why I started this thread; its tone was meant to be neutral. That said, I prefer not to have one. But since I'm planning to buy a condo, I'm sure there will be an HOA there. So I want to learn about them, so I know how to avoid the bad ones, as well as understand their role.
Last edited by MillennialUrbanist; 01-02-2016 at 04:44 PM..
Like anything else there is good and bad.
A HOA forces conforming to a set of rules which apply to everyone. Some dont like it and feel they should do as they please because they own/bought the house or rules just flat out don't apply to them. To those I say don't buy in a HOA. Some see HOAs as the worse thing in the world. Others don't. And that's fine. Nobody is forced to purchase a HOA property.
Buy in a properly ran HOA If you like a clean neighborhood, rules set and don't want to deal with most/all exterior repairs and maintenance buy a HOA. If you like having complete freedom to do as you please take care of your own house exterior buy a non HOA house. What do you want?
When you have a neighbor painting his house lime green with pink trim, playing music at all hours of the night, parking like a jerk, has a filthy exterior or crap and junk cars everywhere, you have to go through the city to get them to do some things. And there is nothing forcing him to paint or do most things. So the city can only enforce so much. Now try selling your house and the guy lives across the street from you. Buyers aren't gonna like that. You will sell. But how long and how much remains to be seen. I can tell you that your neighbors eyesore house will have a impact in weather I bid or even want to bid on your house, anyone who thinks otherwise is a fool. Nobody wants to stare at a bunch of crap across the street every day. And a nice neighborhood is only nice until a Ahole moves in next door. Think it doesn't happen?
There is a reason moving should be called neighbor lottery.
As far as who runs the HOA it's the homeowners. My wife belongs to a HOA. She's none of the things you claim people in HOAs are. Sure do some people get fines? Absolutely. They violate the rules they get warnings then ultimately fines.
I remember one place that was a rental. The renters were a bunch of college kids, parties all the time, trashing common pool and clubhouse areas, set fire to a trash dumpster, people's properties and common areas were getting vandalized. The homeowners were screaming. The HOA got proof soaked that landlord in vandalism and CCR rules fines and rightfully so. The guy was a absentee never stepped foot on the property. The tenants moved the guy ended up selling. They caused damage and the LL is responsible.
That's not to say that there aren't douchebags who think because they are president or on the board, don't go nuts with making up rules as they please. But those are manageable if you know how. They can fine you all they want. If the rule isn't in the CCR it's not a rule. You can go to meetings argue your case and ultimately court and sue the HOA. You can file complaints with your states ruling body over HOAs. You can also run for a position if it opens up. So there are ways to combat a abusive HOA. Most people that complain about a HOA have never served on one.
Everyone who moves in a HOA is given a book with all the rules. I doubt if most read them. Then they get mad because they violate the rules and get fined. HOAs aren't for everyone. If you think that you cannot handle living in a HOA don't buy in one. It would have a disastrous beginning and end.
Great question. The purpose of an HOA is to protect the home values for the community by enforcing the Covenants, Conditions, and Restrictions (or CCR's) set forth by the real estate developer. If the association was created prior to 1977, it probably doesn't have as much power as a newer community. You can usually obtain a copy of the deed restrictions to review in advance of making an offer from a title company or real estate attorney.
A HOA can add and adopt rules to the existing CCRs.
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