Special offer

to Hidden Valley Ranch Owners -- How to Spot a Bad HOA

By
Real Estate Agent with Realty ONE Group Mountain Desert DRE #SA554748000

 This deer seems to have claimed her own space!

Hidden Vallley Ranch, Deer with no trespassing

Here is another photo of the deer. This photo was taken by my friend, Rick Henwood, in Haisley Homestead. It looks like the deer are quite content here.

Deer in a back yard in Haisley Homestead, Prescott, AZ

In hiddenvalleyaz.nextdoor.com a controversy is raging over a special assessment. When I set up this neighborhood, I intended it to be a way for those in the neighborhoods to have a peaceful dialog and to assist in some communication such as garage sales, lost pets, meeting notices, recommendations, and other friendly topics. Several members have dropped out because of the negativism in the posts.

I just found an article by Jill Schweitzer of Scottsdale that could be of interest, especially property owners in Hidden Valley Ranch:

How to Spot a Bad HOA

Here are some excerpts from the article in REALTOR Magazine.

What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. . . . Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise.

Look at the Reserve Study

First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA.

  • What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to 100 percent is low risk.
  • How much does the reserve study recommend the HOA saves each year, and how much is the HOA actually saving?
  • Has the HOA been following the reserve study and making capital improvements?
  • How much money can you foresee being needed compared to what the HOA has saved?

Read the whole article here.  

Jill Schweitzer, author of the article just joined Active Rain. Read my introduction to her here.

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In my view, the Association in Hidden Valley Ranch had very low dues for a really long time. I believe the HOA board made a mistake by suddenly trying to build a reserve at the time when there is a large road improvement project that needs to be done. Another mistake was not communicating with the homeowners and allowing them to participate in the decision.

I believe the petition and the special meeting will be a good thing . Maybe more homeowners will become involved in the decisions involved, therefore making Hidden Valley Ranch an even better community.

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If you want to learn more about Hidden Valley Ranch and Haisley Homestead, check out some other blog posts I made: