Is a Homeowner’s Association Right for You?

Many newer developments come with the amenities that homebuyers indicate they want: gated security, community pool, club house, and nicely landscaped common grounds. By necessity, all of these goodies come with something else – a Homeowner’s Association. After all, once the developer has sold all of the houses or lots and heads on to his next project, someone has to stay behind to hire the gardener, make sure the pool doesn’t turn green, and see that the gates are working.

But usually, the bylaws of the HOA do not stop at the boundaries of the common areas. Along with the caretaking of the commonly owned property, most HOA’s have rules and regulations that effect every homeowner in the development. So, when you buy a home in a new subdivision, common interest development (CID), planned unit development (PUD), or co-op, chances are good that you are now a member of an HOA, which will probably exercise a lot of control over how you use your property.

First off, Homeowner Associations have dues that become one more monthly expense that you must consider in your personal affordability factor, along with the mortgage, property taxes and homeowner’s insurance. The dues in some HOAs have stayed relatively level for years; in others you can expect a 10% or more increase each and every year. Make sure you pay those dues on time – there is almost always a penalty if you don’t and some HOAs can be ruthless when it comes to putting liens on property for unpaid dues and some even have a reputation for foreclosing on homes.

But no two homeowner associations are alike. Some are almost exclusively focused on dealing with the community-owned areas and will impose few, if any, restrictions on property owners. Others have been described as having the attitude that the HOA and its board own each and every home in the association, and are the final authority on everything! The trouble is, you often don’t know what you are moving into, until it is too late.

First off, examine your own personality and what you and your family want and need in your next home. Here’s one easy test: if you own an RV or boat that is too large to fit in the garage, you might want to think twice about settling into an HOA neighborhood. Many associations have restrictions on parking such large vehicles, and some do not allow on-street parking of any kind, so you might have to factor in storage for that monster pick-up truck into your monthly housing budget.

If your idea of a wonderful weekend is to head off to the nursery or garden center, buy some plants that strike your fancy and take them home and plant them in the front yard, well, the “association lifestyle” may not be for you, either. You might be surprised when you get a violation letter, or even a fine for not having had your pansies approved by the HOA’s Architectural Committee. Have kids? Again, don’t be surprised if you get reprimanded if a skateboard is left out on the front driveway! If you fit into any of these categories, you may want to pass over the planned communities in your house hunting.

But you’ve found your dream house in a gated community, the association dues are reasonable, and the neighborhood looks great. How do you decide if this is a good step? First, there are three important documents that govern HOA’s: The CC&R’s, the Association Bylaws and the current Association Rules and Regulations. Get copies of all of these and read them, prior to your purchase.

The CC&R’s, (Covenants, Conditions and Restrictions) as part of the deed indicate the basic restrictions placed on you as a homeowner. The HOA Bylaws will tell you how your association is run (for instance, can the same person serve as president forever, or are there term limits as well as how many homeowners sit on the HOA Board) and the Rules and Regulations should outline parking restrictions, the procedure you have to go through to paint your home, is it even possible to do a room addition, and do you need approval to replace your marigolds with agapanthus? The CC&R’s should be a part of the disclosure information your Realtor® must provide; to obtain the bylaws and rules, you may have to go direct to the HOA Board, or its property management company. If there is any reluctance in allowing you to see these documents, that should raise a red flag.

What Homeowners' Associations May Regulate (a partial list)

• Exterior paint colors
• Fences and hedges
• Trees, lawns, and weeds
• Solar energy installations
• Swing sets, basketball hoops, and other play equipment
• Garages, sheds and backyard storage
• Parking
• Clotheslines and garbage cans
• Outdoor lights and TV antennas and dishes
• Window coverings and wreaths
• Home businesses
• Pets (size, types, total number)
• Noises and obstructions of views

Reading these documents will give you some idea of the overall powers of the HOA and the corresponding responsibilities of each homeowner, but they may not tell the whole story. Some HOA’s are extremely fastidious when it comes to front yards, but allow a lot more liberty with respect to your back yard – others will send a committee to your door the minute a neighbor hears you digging! Some will insist you cannot install a satellite dish anywhere on your property (even though a federal law protects your rights to put one in). And some HOA’s just make sure that the streetlights and the front gate work, and don’t concern themselves with what individual homeowners do. Your best bet is to ask around the neighborhood to find out how the HOA affects life in the neighborhood.

After all of this, you still find out that you have moved into a planned community that wants to plan YOUR life a little too much to your liking – well, you can always run for the Board!