By definition an HOA (Home Owner's Association) is a non-profit organization created by a developer to oversee the CCR's (Covenant Codes and Restrictions) of a condo, co-op or CID (Common Interest Development). Most communities built since the 1990's have HOA's, and usually any community with common property such as a pool, club house, open space, tennis courts or club house, will have some sort of HOA. All homeowners in the development are required to pay dues, and the average across the nation is $300/month. Once the developer sells all the units, the HOA is governed by a board of directors, elected by the homeowners, and the development is usually managed by a professional property management company. Much of Walnut Creek Real Estate is subject to CCR's and HOA's.
The purpose of the HOA is to make sure that the CCR's are being followed by the homeowners, and to provide at least one annual meeting for all the homeowners. When a home in the complex is purchased, the buyer is required to sign off on the CCR's, the Articles of Incorporation, the Budget and the minutes of the all the Board of Director's and homeowner's meetings. If a buyer is uncomfortable with the regulations, they should reconsider the purchase, because they are agreeing to the regulations when they buy the home, and can be fined heavily for violating the rules.
Depending upon the personalities of the homeowners and the members of the board, some HOA's can be very casual and other extremely strict. Either style, if taken to the extreme, can have a detrimental effect upon the values of the homes in the complex. Most CCR's require that the homes and landscaping be maintained. Some allow only certain paint colors to be used, and only specific plants be used in the common areas. Most condo developments will not allow the homeowner to paint the exterior of their unit a different color than the rest, including the trim and front doors.
If the board of directors is lax, then it leaves the way for the homeowner to allow their landscaping to die, their paint to peel and their abandoned cars and appliances take residence in the front lawn, and it is obvious how this can cause a decrease in property values. On the other hand, a too strict HOA can result in overzealous regulation enforcement, resulting in lawsuits, unhappy homeowners and a bad reputation for the complex. Most lenders will not offer mortgages in communities where the HOA is in litigation with a homeowner, so it can become impossible to sell a home in the complex. Also, bad reputations tend to stick with a community, and homeowners can be scared away for many years.
So, if you decide to live in a community with an HOA, your vote counts! Make sure you elect a board of directors that is going to be fair, vigilant and understands that the underlying purpose of their position is to maintain property values, not destroy them.
To learn more about Walnut Creek Real Estate and Home Owner Associations please click here or call Suzanne at 925-788-5693 or email Suzanne at Homes@SuzanneMasella.com.
Comments(0)