Homeowners Association: Basics Of HOA

Homeowners associations started its birth back in the early 1960’s.  Some 200 homeowner association were in existence in the 1960’s and every year since then, it has become increasingly more popular.  There is around 350,000 homeowner associations in the United States today where almost 79 million homeowners are members of.  If you are a home buyer and the property you are interested in has a homeowner association, you have no choice but to belong to the homeowner association and pay its annual dues.  Homeowner association dues are part of your mortgage payments and is figured into the debt to income ratios of your housing expenses.  Homeowners association dues is somewhat of a tax and it is mandatory that you pay it or the homeowner association can lien your property.

Objective And Goal Of Homeowner Association

Homeowner association is an entity that is made up of homeowners in the subdivision or condominium project where the officers of the homeowner association is elected by the residents of the housing subdivision or the condominium complex.  The homeowner association elected officers are responsible in creating rules and laws pertaining to the standards of the neighborhood and what each residents need to do.  A homeowner belonging to a homeowner association cannot make major changes to the ecstatics of their home without approval from the board of directors of the homeowner association.  A homeowner association may have rules against painting, roofing, landscaping, and other property restrictions.  For example, some homeowner associations do not allow a boat parked in the property owner’s driveway while others do not allow commercial vehicles parked in their driveways.  Although it is parked on a private driveway, the homeowner association can implement such rules because the majority of the residents have voted on such rules and regulations.

Homeowners Association: Advantages And Disadvantages

Being part of a homeowners association has its advantages.  Homeowner associations can restrict in a neighbor painting their home a certain color or having multiple commercial vehicles on their driveway.  To many homeowners, someone painting their home orange and purple may seem it as an eyesore and probably will be worried about degrading the neighborhood.  Another example, say you have a neighbor who is a plummer and you see several plumbing vehicles and plumbing equipment on the front yard.  You as a neighbor cannot demand that he or she remove the eye sore items but a homeowner association can enforces its rules and ordinances.

Disadvantages Of Homeowners Associations

Disadvantages of being part of a homeowner association is that you cannot do everything you want on your property without the permission from the board of directors.  For example, if you want to change your existing tile roof to asphalt shingles because asphalt is cheaper, you need to get approval from the board of directors of the homeowners association.  If you go ahead and do as you please because it is your property, the board of directors of your homeowners association can take legal action against you and possibly lien your property.

Other Roles Of Homeowner Association

This can be an advantage or disadvantage to homeowners but homeowner associations can provide ammenities to the community by installing gyms, pools, tennis courts, club houses, ponds, waterfalls, and offering maintenance such as security and landscaping and plowing services whether the homeowner likes it or not.  The disadvantage of adding such ammenities to the community is that it is not free and every homeowner needs to chip in.  Having luxuries such as a pool and tennis courts will increase the homeowner association dues to every member of the homeowner association.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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