In the United States, more and more homes are becoming members of homeowner associations (HOAs). HOAs ensure the maintenance of shared spaces in neighborhoods, as well as provide amenities such as health clubs, parks, swimming pools, child playrooms, and more.
As not everyone understands what an HOA is, however, we’ll be answering 7 of the most frequently asked questions about HOAs in today’s article.
1. What is an HOA?
In real estate development, the property developer sets up a non-profit organization known as an HOA for marketing and selling homes in a residential area, as well as developing and managing the community. The homeowners vote in the HOA’s board of directors, which makes sure the association abides by the non-profit or corporation laws of its state.
2. How much will be being part of an HOA cost?
On average, HOAs charge a monthly fee of around $125. However, dues vary depending on your community’s location and what niceties your HOA provides. HOAs of townhomes or condominiums may charge more as fees will likely incorporate insurance and the maintenance of the building’s communal spaces.
3. Is it necessary to pay HOA fees?
Yes; even if you don’t avail of the community’s shared amenities, you are obliged to pay fees from the moment you occupy a home belonging to an HOA.
4. What kind of rules must I follow in a community belonging to an HOA?
HOAs create rules designed to encourage homeowners to take good care of their homes and communal spaces. Others help maintain the consistency of the neighborhood’s appearance and ambience. Examples of rules include prohibitions against littering, excess noise, unkempt lawns, and the keeping of dangerous animals.
5. What if I break the rules or fail to pay HOA fees?
Late payments or other infractions are often handled quietly, usually via courteous notices that are issued by mail or in person to the homeowner. Continued violations will incur additional warnings before the HOA decides to take more drastic measures.
6. How are rules enforced by HOA boards?
The association will work with you to settle any contentious issue but may be forced to pursue legal action in extreme cases. Until issues are amicably sorted out, an HOA may put a lien on your home.
7. Will HOA charges influence how much money a bank will lend me?
Yes, lenders take into account considerations such as insurance, taxes, and HOA fees, which will determine the amount of money a bank will loan you.
If you have any questions about HOAs or HOA regulations, please feel free to contact So Cal Property Enterprises, Inc. through its corporate website, or give us a call at (888) 828-9444. We’d be glad to hear from you!