Have some Homeowner Associations gotten out of Control?

Reblogger Dale Taylor
Real Estate Agent with Re/Max 10 New Lenox Illinois

Homeowner Associations can be of value to both the Homeowners and the Villages serving the Residents.


Villages not large enough in population to create “Home-Rule” governing through the election process, find themselves dependent upon the enforced governing Articles in Homeowner Association Bylaws to help them to lawfully protect Residents.


A Homeowner Association (HOA) I am currently serving is having a disturbing issue with a Tenant hosting lascivious parties all the time. Imagine having to shield your Children from looking out their bedroom windows to get a most unusual sex education lesson, as they observe Neighbors in their back yard boldly out in the open doing just what you never want your Children to see grown folks doing with unobstructed view.  Have Mercy!


I’ve had to guide this HOA Leadership to come together in unity to review their Bylaws, to first find any provision to stop the parties, and to create a new article governing rentals.


In uniting with the Police to address all the illegal activities going on at the parties, the Police have partnered with the HOA to stop the parties using the Nuisance Article. The HOA has partnered with the Police through Residents on the block filing complaints, so the legal process can take its course in hopefully permanently putting an end to this insubordinate un-neighborly like behavior.


It is only fair to you I give a little insight to how all of this could have come about.  


Another side effect to all the distress property sadly affecting nice Neighborhoods is some savvy homeowners with advance notice of losing an income have refinanced their homes to the maximum. They have taken the money and purchased another home for cash in a more affordable neighborhood, moved out of their current home, allowed them to go into foreclosure, while they’ve rented them out at less than market rate, resulting in them selfishly making a profit from their home destined for foreclosure, and demoralizing the neighborhood their leaving by renting to Tenants who don’t care about the rules of conduct as listed in the Articles of Bylaws.


Proactive HOAs can be a great asset to the Neighborhood when they immediately take action to correct bad behavior of Residents. I am so glad I possessed the expertise to help this particular HOA with their problem.  You can imagine how irritated are the Neighbors on the block and the block behind the subject property,  at the point of not wanting to wait on due process of the law and enforcement of Bylaw rules to evolve into a resolution of the problem, they’d much prefer to become a force of Vigilantes.


My Colleague below also shares the unfortunate side of how HOAs can unfairly create profits when Residents are relocating. If I were in their shoes I’d encourage my Seller to compose an informative letter sent to every Resident, and presented at the next HOA meeting to create a positive change.


Fortunately for the HOA I’m referencing the foreclosing process on the home has moved forward to the point of it being assigned to a Colleague who is actively working through his Bank Owner Client (REO) to evict the Tenants, and there is a very soon pending court date on the charges filed against the Tenant, who really needs to get smart quick and just move quietly in the night.

Original content by Joan Cox DRE# ER40011786



Have some Homeowner Associations gotten out of control?    Most communities only have one association, but what happens when there are two or three?   When there are three associations for one community, is it fair to collect over $400.00 for each status letter?     This is pretty difficult to explain to Sellers when you call and find out what these transfer fees will be.    This HOA also collects $450.00 for working capital that is never returned from the buyer.


On top of that --- some HOAs require 10 business days to produce the status letters.   If the title company orders them too early, the payments made for the first of the month are not recorded, and too much was collected.   If the title company waits to order until after the 8th of the month, and you have to do a mail-out, the status letter will be late.    Recently this same HOA had another $350.00 RUSH FEE.


This homeowner paid $1,619.80 to the HOAs just to transfer the property.     There are other HOAs in Denver that only charge $150.00 to transfer and no rush fees.    This is highway robbery, and will see what can be done to reduce these fees.     There should be regulations on the fees they can charge our homeowners!





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Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, ABR, CNE, CRS, ePro, PSA, SRS

This is a very informative post. Thank you for sharing and best of luck!

Nov 21, 2016 02:28 AM #1
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Hello Dale, This is important information. Just so you know reblogged posts do not qualify for the bonus points. Writing your own post would work though.


Nov 21, 2016 11:35 AM #2
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dale, thank you for the re-blog, and luckily we have not seen the outrageous parties yet.

Nov 21, 2016 09:42 PM #3
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Dale Taylor

Realtor = Chicago Illinois Homes Townhomes Condos
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