I received an email from a client who posed the following question: "There's talk around here about the HOA changing the CCR's to prohibit rentals. Can they do that?" She also asked, "We have so many properties in foreclosure, where they're not paying HOA fees, that they want to charge all the rest of us [homeowners] an additional $600 fee. Do we have to pay that?"
Over the years, I've heard many comments from homeowners about their Homeowners Association ( HOA ). Often times, those comments were quite harsh. Others were quite complimentary. Many of my clients absolutely LOVE their HOA's, and appreciate the fact that an HOA can help prevent neighbors from painting their houses pink & purple polka-dots, and can do something to help prevent the neighborhood from becoming a scene out of Sanford and Son, a junk yard.
But then again, I've had more than one client refer to their HOA's as being like a Gestapo ~ a comparison that is arguably exaggerated and perhaps not the most 'politically correct' term ~ but it nonetheless summarizes what they perceive as heavy-handed and irrational operations by HOA's.
Homeowners, under the umbrella of an HOA, need to be aware that "they" are "we"! Most HOA's are managed on a representative democratic model (similar to our US government model). The homeowners elect a Board of Directors (from homeowners), and then the Board oversees/manages the funds, CC&R's, budget, expenditures, fees, special assessments, etc. The Board may contract with an outside Property Management firm to administrate and enforce the Board's decisions, but ultimately, it's the Board that calls the shots.
Back to my client's questions ~ Can the HOA can restrict rentals in the subdivision? Yes! And, can the HOA levy a special assessment against all homeowners and demand payment? Absolutely!
So, what's a homeowner do? Are there any solutions or protection from mismanaged HOA's? Do we need new legislation to curb the powers (or abuses) of HOA's? The tricky part is, "they are we," and "we are they!" Whatever anybody does for or against an HOA is actually being done for or against the individual homeowners. What a dilemma!
Arizona Homes - Chandler Homes - Gilbert Homes - Mesa Homes - Queen Creek Homes
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