HOA is the common abbreviation for “Homeowners' Association.”
Simply put, the Association exists to enforce the community's
governing documents. This means that an HOA can provide services, regulate
activities, and may impose fines — if state law and CC&Rs allow — based on
the Governing Documents that are set in place.
An Association does not strictly or solely apply to communities in
which single-family houses are the only offering to call home. Townhouse and
Condominium communities may also have Associations.
Anyone that buys property in a community with an HOA also buys
a stake in the HOA and has a say in the decisions an HOA makes.
There are two ways in which an HOA will benefit your community.
Conveniently, both work toward the same overall goal: increasing property
value.
These amenities can be tennis and basketball courts, a fitness
center, dog parks, a swimming pool, and many many more. These community perks
ultimately become selling points and work favorably for the residents. Also, no
resident has to worry about the maintenance or upkeep of the community
amenities and spaces.
The rules are in place so that the community can exist in harmony.
If everyone were to do whatever they wanted to their property, it would
infringe upon other community members. This makes the development less
desirable. Imagine
trying to sell a house next door to a flamingo-pink property with a bowling
alley in the front yard. While it may sound cool, it’s going to be quite the
eyesore and a hard-sell to potential homeowners.
Shared amenities and community upkeep are matters the HOA will pay for and
maintain. This means ensuring grass does not become overgrown,
structures are not falling apart, playgrounds are safe for children to
use, pools are being kept clean, and basketball hoops have nets on them. These
things can only be properly maintained if the finances of the HOA are also
properly maintained. This is done through collecting monthly or annual HOA fees
from all members of the community.
As stated earlier, each member of the community buys into the HOA at the
same time they purchase their property. This gives them the right to use the
communal amenities, but at a cost. Each month the members of the community must
pay the agreed upon amount of money in the Governing Documents to help finance
the maintenance and upkeep. It's the HOA's job to manage this money properly to
ensure that the finances are available.
This is done through finding the proper balance in fees. If fees are set as
low as possible, it will be very difficult to ensure there is proper funding
for maintenance and upkeep. At the same time, if fees are set too high,
community members will look to leave and it will also be hard to lure in new
members to the community.
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It might seem like a daunting or difficult road ahead, but rest assured
these are all things we can help you handle to make your life as an HOA board
member easy and stress free.