A Homeowner Association (HOA) is a legal entity created to manage and maintain the common areas of a community. Generally these"common areas" consist of things like pools, clubhouses, landscaping, parks, streets and roads, but a HOA also governs the CC&Rs, the Declaration of Covenants, Conditions & Restrictions, or set of rules that are typically set up by the developer and updated/changed by the Board of Directors. The CC&Rs are what determines if it is ok for you to leave your garbage can out for more than a day or if you are allowed to leave a car up on blocks in your front yard, or if your neighbors will have recourse if you choose to paint your shutters purple when theirs (and the rest of the neighborhood's) are black.
The HOA will enforce these CC&Rs in the way that is approved by the Board of Directors, often with the assistance of a property management company. These polices are developed to protect the neighborhood, the value of the homes and the quality of life for the residents. However, these policies can be changed if the majority of the voting neighbors would like them to be. So before you buy a home in an HOA, here are some things to consider:
1) You should thoroughly read and examine the CC&Rs that govern the community and make sure you can live with and abide by them. If the regulations state that you cannot have goats on your property, and you are a goat owner... this may be a sticky point! But if you think that 24 hours is plenty of time to leave out your recycling bin and you feel that is a fine policy and want your neighbors to abide by the same....an HOA may be perfect for you.
2) You are perfectly reasonable to ask for a copy of the financial statements of the HOA and have a person such as a lawyer or accountant examine them to make sure there is nothing irregular. Checking to see if the HOA runs its business in a responsible manner will help you determine if the neighborhood will have enough cash on hand to make upgrades and repairs to roads or other common areas such as the pool.
3) Find out what the monthly dues are and make sure you can afford them. Dues can be reasonable... or not depending on where you live, what the HOA does and your tolerance for the price-tag. But not paying them could put you in some serious hot water and potentially get you sued.
4) Find out if the HOA has a strategy for replacing of major items such as heating, cooling, roads, buildings and roofs and how the reserve requirements are funded. (i.e. has money been saved, or would the neighbors each be required to pay an additional amount should the basketball court need to be re-surfaced.)
5) Find out if there is any litigation pending against the HOA. This could be a red flag in a couple of different ways, and certainly something you should know before you sign your contract.
6) Ask about when the last time dues were raised, and how often this happens. For obvious reasons you want to know how much you may be expected to fork over!
An HOA community may be a great fit for you and your family and more an more Carolinians are making this choice. But be educated before entering into any contract, especially one concerning where you live and what you can do with your property.
Property Manager
Kuester Property Management
Showing posts with label Carolina Homeowners Association. Show all posts
Showing posts with label Carolina Homeowners Association. Show all posts
Not happy with your HOA? Get involved.
I myself live in a community - just outside Charlotte - with an HOA. The other day our neighborhood held its annual "neighborhood garage sale." It was a beautiful sunny spring day - the perfect Carolina weather!
As I sat with my neighbor (a good friend) I heard her say, over and over again, what a shame it was that the neighborhood association did not advertise the garage sale properly. She complained to herself, to her husband, to me, to the one or two people who stopped to look at the old children's toys... But fact is, we had hardly any traffic at all and it made for a very long day!
After a while I had to say something. Homeowner's associations work when the neighborhood residents get involved. And since my friend had not been on the garage sale committee, and since she did not make any effort that I could tell to help organize the event, participate, help, or lend her opinion beforehand, I truly felt that she did not have a reasonable complaint.
Many of us in Charlotte live in HOA communities and many are run well. The property management company takes care of things like the park and the pool and common area. The architectural committee approves fences and patios. But too often too much falls on too few.
If you are not happy with how your HOA is run, or how they handle the annual Easter Egg Hunt, or the color of the new playground equipment--then it is ultimately your responsibility to get involved. The folks that have taken the time and effort to step up and make the decisions for the community are not compensated. They do what they can, and sometimes that means there is no one to place an ad in the newspaper or update the neighborhood website.
Every HOA has large jobs and small jobs and if you are able--please consider doing your part. If you can't, that is fine too... but it leaves little room for you to complain when things don't go the way you would like!
Property Manager
Kuester Property Management
As I sat with my neighbor (a good friend) I heard her say, over and over again, what a shame it was that the neighborhood association did not advertise the garage sale properly. She complained to herself, to her husband, to me, to the one or two people who stopped to look at the old children's toys... But fact is, we had hardly any traffic at all and it made for a very long day!
After a while I had to say something. Homeowner's associations work when the neighborhood residents get involved. And since my friend had not been on the garage sale committee, and since she did not make any effort that I could tell to help organize the event, participate, help, or lend her opinion beforehand, I truly felt that she did not have a reasonable complaint.
Many of us in Charlotte live in HOA communities and many are run well. The property management company takes care of things like the park and the pool and common area. The architectural committee approves fences and patios. But too often too much falls on too few.
If you are not happy with how your HOA is run, or how they handle the annual Easter Egg Hunt, or the color of the new playground equipment--then it is ultimately your responsibility to get involved. The folks that have taken the time and effort to step up and make the decisions for the community are not compensated. They do what they can, and sometimes that means there is no one to place an ad in the newspaper or update the neighborhood website.
Every HOA has large jobs and small jobs and if you are able--please consider doing your part. If you can't, that is fine too... but it leaves little room for you to complain when things don't go the way you would like!
Property Manager
Kuester Property Management
HOA Rules and Regulations
Rules are meant to protect people and property, and HOA rules are the same way. While some people may be offended by the notion that they have to request permission to build a swing set, or put up a fence in their own back yard, there is always a good reason--or at least a good intention when an HOA set the rule.
If you do not want to live in a community that has restrictions on the size of shed you can put up, or how long your grass can get in between mowings, than perhaps living in an HOA community is not for you. But if you see the value in a neighborhood which abides by the same guidelines in order to protect the property values and the residents, then an HOA-neighborhood may be a great fit
If you are new to living in a homeowner's association regulated area and do not read the CCRs, it may be a bit of a shock to you the first time you are given a warning letter about a minor violation such as leaving your garbage can outside for several days after garbage day. But rest assured the committee member who noted the violation and the property management company that sent the letter to you are not "out to get you." No one likes to be the bearer of bad news--and if the issue is minor and a first-time problem, they will likely wave any fee if you take care of the issue quickly.
It is an adjustment if you have never had to follow the policies of an HOA, but in the end they rules are meant for you. After all, if there weren't a rule about keeping a rusted-out car in one's front yard, there would be little recourse for you if your next-door neighbor were to choose a '79 Buick as a lawn decoration!
Also, you should remember, if you feel that a policy of the HOA, or neighborhood covenant is unfair or ill conceived, you have the ability to have it put up for a vote if you are an active committee member. The HOA is there for you -- so participate and enjoy the benefits of having a community interested in protecting you, your family, and your home.
If you do not want to live in a community that has restrictions on the size of shed you can put up, or how long your grass can get in between mowings, than perhaps living in an HOA community is not for you. But if you see the value in a neighborhood which abides by the same guidelines in order to protect the property values and the residents, then an HOA-neighborhood may be a great fit
If you are new to living in a homeowner's association regulated area and do not read the CCRs, it may be a bit of a shock to you the first time you are given a warning letter about a minor violation such as leaving your garbage can outside for several days after garbage day. But rest assured the committee member who noted the violation and the property management company that sent the letter to you are not "out to get you." No one likes to be the bearer of bad news--and if the issue is minor and a first-time problem, they will likely wave any fee if you take care of the issue quickly.
It is an adjustment if you have never had to follow the policies of an HOA, but in the end they rules are meant for you. After all, if there weren't a rule about keeping a rusted-out car in one's front yard, there would be little recourse for you if your next-door neighbor were to choose a '79 Buick as a lawn decoration!
Also, you should remember, if you feel that a policy of the HOA, or neighborhood covenant is unfair or ill conceived, you have the ability to have it put up for a vote if you are an active committee member. The HOA is there for you -- so participate and enjoy the benefits of having a community interested in protecting you, your family, and your home.
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