I read an article today that focused on Homeowners Associations (HOAs) - the article cited a survey conducted in Colorado where 3,000 homeowners were asked questions about their HOA. Of the 3,000 respondents, nearly 70 percent said homeowners associations are either a “major headache” or a “minor annoyance,” although 25 percent hadn’t lived under the rules of an association.
Simple math shows that almost 95 percent of people that own a home within a community overseen by an HOA, are dissatisfied with their HOA. There are almost 32,000 parcels out of over 41,000 parcels in Puyallup that reside in formal subdivisions. I can’t imagine life in Puyallup is much different than in Colorado - that’s a lot of unhappy people.
So what is a home owner to do? Well, the obvious response is to get involved with your HOA - either by running for open positions on the board, helping out with a committee if they exist, or filling a need you see by your griping neighbors. I’ve tried to affect positive change in Silver Creek where my wife and I live, by volunteering for a committee.
There’s another thing you can do that might affect positive change - don’t move into a neighborhood with a rogue HOA. It’s a little far-fetched, but people start to get the message when they can’t sell their home because their HOA has a poor reputation. And while home buyers have had the opportunity to review an HOA as part of the Inspection period, a change in new state-wide Purchase & Sale forms makes that opportunity more clear and defined.
The addition of a Homeowners’ Association Review Period on the Option Clauses Addendum (Form 22D) affords a potential Buyer to review 1) Association rules and regulations (or CC&Rs), 2) Association meeting minutes from the prior two years, 3) Association Board of Directors meeting minutes from the prior six months, and 4) Association financial statements from the prior two years. This is a Buyer’s opportunity to satisfy their curiosity about an HOA, before they go forward with their purchase.
Any good Buyer’s Agent will add this section to their Purchase & Sale agreement with a Seller, but a good Buyer will actually take the time to read all the information, and make an informed decision about their future neighborhood. Dissatisfied Buyers leads to dissatisfied Sellers, which may lead to more involvement in HOAs, thereby improving the overall quality of the neighborhoods most of us live in.
Like I said, it’s a long shot - but I’m a dreamer. They’re not making land like they used to, and the land that’s out there is getting bought up by investors that develop land into subdivisions with HOAs. So you can do like my dad taught me - sit down, shut up and hang on, or you can get out of your seat and do something about it.
So what do you hate about your HOA? What do you think they’re doing right? Let us know.
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