Evaluating the Efficiency of an HOA
When you decide you want to buy a condo in the Jersey City or Hoboken area, you will want to look into the policies of the Homeowners Association (HOA) in the building or complex you are considering. There are several qualities that good HOA’s have in common.
One of the most important functions of the HOA is to oversee the general order and peaceful functioning of the “community” that resides in a particular condominium complex. The maintenance of common areas and the ambience of a place should give you a clue as to the efficiency of the HOA. If it isn’t tidy and well-maintained, you may want to keep looking.
Another sign of a well-functioning HOA is the clear and concise documents you should receive when considering a purchase of a condominium. Are the rules self-explanatory? Are the fees and obligations of ownership clearly explained? How are the officers and board members chosen? Are you expected to take an active role in the meetings of the board? What does the current budget of the HOA reveal? If you don’t understand the budget, ask an accountant to help you interpret it.
Does the HOA have contingency funds in reserve, or do they operate in crisis mode, assessing fees as needed for things like emergency repairs? Are preventive maintenance inspections and up-dates scheduled, or do they just wait for something to actually break before addressing it? Try to see if the HOA has an Annual Planning Calendar. This can give you real insight into its efficiency (or lack thereof). It can also show a concern for economic prudence. Certain projects can be planned with an eye toward off-season pricing.
If you really like a place, and the HOA doesn’t seem to be as efficient as you would like, perhaps you can still buy and be happy. You may want to take a leadership role in the HOA. You can step in and show that the implementation of certain practices will save the members time, money and aggravation. After all, that’s the beauty of The American Way, right?
How efficient is the HOA for your condo?
Edward
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