HOA Fee (Homeowners Association Fee) (Seattle: cul-de-sac, HOA fees, insurance)

[gchanel5]

(1) What does HOA fee for single family residence cover?

(2) Why is there HOA fee for single family residence in Seattle? In other states, HOA is only for condos or townhomes....

Your input will be greatly appreciated.

[fnh]

HOA's also commonly apply to neighborhoods of SFRs, at least in TX where we live much of the year. Depending on the amenities, HOA fees cover landscaping of common areas, pools and tennis court maintenance, services like garbage collection. Neighborhoods with HOAs typically have tighter deed restrictions which help maintain property values by enforcing a certain look, but some may chafe at restrictions on paint choice, yard decor, etc. (To whom I say, don't buy a home in an HOA neighborhood. Personally I like an HOA.)

[Ira500]

Most single family neighborhoods don't have HOA dues. But those that are in a development often do. In those places, some of the park land is private and owned by the development, so the home owners share the cost of maintaining it. And like fnh said, things like club houses, tennis courts, etc.

[SouthSeasLifestyler]

Yes, I saw one at the Sahalee Country Club ... anyone know what that covers, they just give you a price, but don't tell you what you are getting.

SSLifestyler

[kyled]

Originally Posted by gchanel5

(2) Why is there HOA fee for single family residence in Seattle? In other states, HOA is only for condos or townhomes....

That you've noticed. I currently live in California and while most HOA fees are for condos or townhomes there are also gated communities or semi-gated communities (have walls and communal areas but no actual gates blocking entrances) that also come with HOA fees. I'm sure this is the case where you live as well. It's not uncommon and definitely not a Seattle oddity.

...Your first question was already adequately answered so I wont bother repeating what others have said. Though I will add one thing that an HOA can cover, man-made lakes. There's one neighborhood near me that was built around a small man-made lake. It has to be taken care of and I'm sure HOA fees are pretty steep to cover those costs.

[Hemlock140]

Most of the newer single developments of the last 10-20 years have an HOA to pay for common area maintenance, such as already mentioned parks/pools/tennis courts, but also items not covered by the city/county under terms of approval. Those can include street trees and other landscaping, and even snow removal. In most cases it's more for rules and regulations on paint color, building additions, parking of cars/boats/RVs, and view blocking. It's definitely not limited to Seattle or WA, there was a lot more of it going on even back in the 1980s in California. We are lucky that in our area when built in 1978-80 no one wanted to be on the board so they never formed an HOA but we are surrounded by them.

[IC_deLight]

Originally Posted by gchanel5

(1) What does HOA fee for single family residence cover?

(2) Why is there HOA fee for single family residence in Seattle? In other states, HOA is only for condos or townhomes....

Your input will be greatly appreciated.

Condominiums are a statutory form of ownership and condominium corporations should not be confused with HOA corporations.

HOAs are found with condos and SFH developments. Condo corporations are only for condos.

These are involuntary membership corporations and exactly what the HOA fees are going to is a common question. Unfortunately those controlling the HOA typically do not wish to divulge that information and you will find much litigation over access to records throughout the country.

The HOA fees cover the HOA board's litigation costs, D&O policies for the directors and officers of the HOA board, CG&L insurance for the HOA corporation, and Property insurance for the HOA corporation. The management companies and HOA attorneys are also known to be fairly rapacious in terms of monies extracted from the HOAs and the homeowners individually. There is always a certain amount that goes to paying utilities. Many HOAs are borrowing money so some of the assessment is probably going to debt payments. Of course, embezzlement is rampant with HOAs.

HOAs are not imposed due to buyer demand but rather largely due to local government mandate. In many jurisdictions, the local government directly or indirectly mandates involuntary membership corporations as a condition of approving a subdivision plat. The reason is for control and liability shifting purposes. The HOA corporations serve only to disenfranchise the owners. Although the HOA corporation is typically organized as a non-profit, it is "non-profit" only for the non-board-member homeowner. The HOA corporation is always operated to benefit the board members and the vendors.

[cully]

I have lived in many many single family areas with an HOA. In fact, sometimes a large HOA and then the sub HOAs. The fee basically covers whatever is common...that is common areas. Common grass, meadow, replacing dying landscape, walkways/trails, lake, pond, pool/pools, tennis court(s), guest parking, roads, security, any security gate/gatehouse, clubhouse fancy or simple, clubhouse parking, pool parking, tennis parking, any specially designed and cared for nature areas, sometimes even one's own lawn if the mowing and weed eating and fertilizing of it is in the deal, lighting, trash, vehicles for such maintenance, the staff, the staff's insurance, the staff's payroll taxes, matching SS, etc. etc.. AND building up reserves to replace whatever they do for you...pool lining, parking seal and lines, new top on courts, if there's a lake there's got to be a dam, etc. etc. I'm sure I'm missing something.

[cocaseco]

Originally Posted by gchanel5

(1) What does HOA fee for single family residence cover?

(2) Why is there HOA fee for single family residence in Seattle? In other states, HOA is only for condos or townhomes....

Your input will be greatly appreciated.

1) Totally depends. Usually in a SFR neighborhood, maintenance of common areas, including fence repair, lawn maintenance, watering and snow removal where warranted. But others might have pools, improvement funds, reserves, playground, parks etc.

2) Many other states have HOA fees for SFR, its not a law, its just what the developer chooses. There are plenty of neighborhoods without HOAs, though most new developments anywhere in the US have HOAs. Usually the HOA fee in a townhome is much larger as there are a lot more shared issues such as roofs.

[Andy]

Originally Posted by gchanel5

(1) What does HOA fee for single family residence cover?

Depends on the development/neighborhood. In some neighborhoods it is a small fee to keep the cul-de-sacs looking spiffy. In other neighborhoods it is large dues that could go for paint on the front exterior of houses, private park maintenance, public pool, cable TV, lawn mowing service... And everything in between of course. My neighborhood has a few private parks it has to maintain and a security officer, so that is what most of my HOA dues pay for.

(2) Why is there HOA fee for single family residence in Seattle?

....only in certain neighborhoods.