You’re moving into a single-family home in one of those ritzy, guarded neighborhoods you’ve always admired from afar. The catch is that it’s part of a homeowners’ association (HOA), so you’ll have to pay dues every month. The constraints of living in an HOA have been the subject of real estate urban legends.
Do you have to join an HOA? The question is difficult to answer as every neighborhood is different. Inquire about the HOA’s governing papers to learn whether membership is voluntary or not, what fees will be assessed, and what the HOA’s responsibilities are when you purchase a home in the area.
What is an HOA?
HOAs are a fantastic concept in principle; they allow neighbors to join together to cover common costs and maintain order in the interest of everyone’s safety and the neighborhood’s overall prosperity. However, HOAs can be a source of contention in a planned community.
Benefits of HOAs
Homes in an area with an HOA often have more luxuries than those in a comparable neighborhood without an HOA. There may be recreational facilities such as a swimming
pool, hot tub, tennis courts, basketball courts, and walking paths nearby.
The HOA may also provide upkeep services like front lawn landscaping to ensure everyone in the area looks their best at all times. If pests are a problem where you live, it may solve that problem. You may use these amenities as a member of the HOA community since your homeowners’ association fees cover the upkeep of community facilities and their operations.
You may learn a lot about your neighbors and work together for the sake of the community by being involved in the HOA, whether via attending meetings, casting votes, or even being an HOA board member. One of the best things about having a home in a neighborhood governed by an HOA is the close-knit community feel it fosters.
You may expect your home’s worth to stay the same or rise, thanks to the HOA. The benefit of an attractive and well-maintained community cannot be overstated. Having a neighbor whose house is bright purple, whose lawn is overgrown with weeds, and who chooses to air dry their clothes in the driveway won’t cause the property values of the rest of the neighborhood to drop.
Downsides of HOAs
With all the horrible tales floating around about HOAs, you may be hesitant to sign on the dotted line. Many meddlers control HOAs and force their own ideals on everyone.
HOAs may impose ridiculous laws and restrictions, complicated contracts, fine you at every turn, and mishandle funds.
Two Types of HOAs
Mandatory HOAs
As a buyer, you are obligated to join a mandatory homeowners’ association in a neighborhood where it already exists.
Do you have to pay HOA fees? When you buy a home in a compulsory HOA, they legally bind you to comply with the specific bylaws and to pay any associated HOA fees, penalties, and assessments.
Common spaces like parks, playgrounds, pools, clubhouses and other amenities are often maintained by a mandated HOA. Furthermore, they have the authority to regulate your household, like what paint colors you can use on your door or how you should park your car.
Still, some think an HOA is a far better option for homeowners in spite of the potential drawbacks.
Voluntary HOAs
Can you refuse to join a homeowners’ association? Not everyone in a community has to be a member of the HOA, but those who choose not to miss out on perks like community pools and social events. In addition to not enforcing rules on the aesthetics of your house or your personal behavior, voluntary homeowners’ associations often do not regulate any other elements of homeownership.
Therefore, if you have the option of joining an HOA, you should do so only if you intend to make frequent use of the wonderful services it provides. It’s important to remember that if most homeowners in a community vote to make their HOA required, the HOA may be transformed from voluntary HOA to mandatory HOA.
Can You Refuse to Join an HOA?
How to opt out of HOA? Present residents are not ordinarily compelled to join a homeowners’ association in an area where none previously existed.
How are HOAs legal? In a similar vein, an obligatory HOA might be established by a vote of the volunteer HOA members and coordination with the county land records office.
New homeowners will need to join even if current owners refuse to join. Homeowners already in the organization often decide to join because of the perks of being a part of an HOA. Usually, the decision to make the change is motivated by a desire to improve the community as a whole by resolving a pressing issue.
Changing HOAs
Distinct homeowners’ associations have specific rules and regulations. Investigate the membership requirements to ensure they fit your way of life early in the home buying process. Find out how the HOA operates, how frequently its board of directors convenes, HOA rules and paying of penalties, and the process for making rule adjustments.
The formality or lack thereof of your HOA may surprise you. One positive aspect of a lax HOA is that you may have more freedom to make improvements and repairs when you do proceed to buy a house. However, it may make it more challenging to deal with noncompliant neighbors.
Participate at HOA meetings and make your voice heard on crucial issues. If you are unable to attend a meeting, you should request a copy of the minutes to review at your convenience.
Dissolving HOAs
It’s possible to attempt to dissolve a homeowners’ association by reviewing your state laws. One thing is for sure; it would be burdensome and costly to do. To even begin, you’ll need the support of at least 80% of your neighbors; doing so will almost definitely cost a small fortune in legal fees.
