{"id":52492,"date":"2016-04-19T12:50:48","date_gmt":"2016-04-19T12:50:48","guid":{"rendered":"https:\/\/www.movoto.com\/foundation\/?p=3194"},"modified":"2016-04-19T12:50:48","modified_gmt":"2016-04-19T12:50:48","slug":"what-is-a-hoa","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/what-is-a-hoa\/","title":{"rendered":"What is A HOA?"},"content":{"rendered":"

A Homeowners Association, HOA, manages properties that include condominiums, townhomes, Villa\u2019s, planned single-family developments and mobile home <\/a>parks. Usually a non-profit corporation an HOA offers a vehicle to manage property after the developer finishes building and selling units in the development. An HOA leaves a management infrastructure in place to see to the common areas, buildings and amenities of the property.<\/p>\n

What is a HOA and what does it do?<\/b><\/p>\n

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Source:wikimedia.org<\/p>\n

If you buy a home in a community with an HOA, you will be required to pay a fee that is for the maintenance of buildings, in some cases, upkeep of common areas, and facilities, such as pools, tennis courts and other community amenities.\u00a0 If you are purchasing a home that requires you to be a member of an HOA, then you should be aware of what a HOA is and is not.<\/p>\n

Homeowners, who are members of the association and have been elected by other homeowners to sit on the HOA board, often run HOA\u2019s. Some properties have both and HOA and property manager, hired by them to take care of day-to-day maintenance of the property.<\/p>\n

When you buy, a property that has an HOA the monthly fee that you pay to this association can be from $200 and $400 per month, or more depending on how upscale the property is. The more amenities the higher the HOA fees are likely to be for homeowners. If there is a major repair on the property, like an elevator or new roof and the HOA doesn\u2019t have funds for the repair, they can assess homeowners for an equal portion of the cost of the repair. Hidden assessments can be costly and a financial hit to some homeowners.<\/p>\n

Make sure you know the Rules<\/b><\/p>\n

Called covenants, conditions and restrictions (CC&R\u2019s) the rules of an HOA are for you and your home. They can be so refined to cover the architecture and color of your home, the plants used in your landscaping, whether you can have a pet, or sublet your property and may other restrictions that can impede your enjoyment of life if you\u2019re the sort that doesn\u2019t like be subject to a bevy of rules and regulations. On the other hand, the rules of an HOA and the CC&R\u2019s that homeowners are subject to can add value to your property if the HOA is operated properly.<\/p>\n

Check for Compliance<\/b><\/p>\n

If you are buying a home with an HOA check the home to make sure that it is in compliance with the CC&R\u2019s for the community. If the property is not, you may be required to spend thousands of dollars after purchase for it to comply.<\/p>\n

Is an HOA for You?<\/b><\/p>\n

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Source: wikimedia.org<\/p>\n

If you are considering the purchase of a home with an HOA, carefully consider if one is for you. Being a member of an HOA can be a frustrating, sometimes fruitless endeavor but a well-run HOA can add to the quality of life of a community and maintain property values. Ask the neighbors before you buy about the community HOA, if possible. They will be a good barometer on how it is run. The person selling to you will tell you that all is well in HOA land, even if it\u2019s not.<\/p>\n

Not for everyone, an HOA may not suit you if you don\u2019t want a committee of neighbors telling you that you can\u2019t paint your front door red, or fly the flag of your choosing. If you don\u2019t like being told what to do an HOA is not for you.<\/p>\n

Due Diligence required when an HOA is Involved<\/b><\/p>\n

Although a seller is required to disclose knowledge of changes regarding HOA\u2019s, in some states, other states have no requirements. If that is the case it is better to be safe than sorry and gather all of the information about the property you wish to buy, including the HOA in order to make an informed decision.<\/p>\n

Check the Fees<\/b><\/p>\n

HOA fees will vary from one community to the next so if you are looking at properties make sure you know the fee before you purchase. Because it will be a monthly cost, over and above your mortgage, taxes and insurance for which you will be responsible. Check the following, too, so that you know how the HOA can affect you.<\/p>\n