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[H621]Homeowners Association Property Management

by Mar, Mar

Some of the developments that real estate developers build are common interest developments, a category that includes planned?unit developments of single?family houses, condominiums, and cooperative apartments. Before the first unit is sold of one of these developments, the developer records restrictive covenants ? on all of the properties ? that "run with the land," meaning that all successive buyers are bound by the same covenants as the original purchaser. These covenants, among other agreements, form the basis for the homeowners association.

Homeowners associations collect fees, fines, and assessments from homeowners, maintain the common areas of the development, and enforce the association's governing documents. These may include detailed rules regarding construction and maintenance of individual homes. The common areas maintained and governed may include landscaping, common buildings (e.g., clubhouses) and recreational facilities, common walls in attached housing developments, and infrastructure such as streets, mailboxes, sidewalks, and parking lots.

Often, a homeowners association collects special assessments from all its members in addition to set fees. Assessments can be made to cover legal expenses for a judgement against the homeowners association, to repair damage from a natural disaster, or to make improvements.

In some states, California or Texas for instance, a homeowners association can sell a member's house without any judicial procedure in order to collect a fine. Other states, like Florida, require a judicial hearing.

Some of the responsibilities that the covenants delegate to homeowners association boards would otherwise be performed by local governments or require private legal (civil) action.

Nevertheless, only owners -- who need not be residents -- are allowed to vote in elections to choose the board. Residents of the community who are not owners (e.g., renters) do not typically receive a vote.

Some of the first homeowners associations in the United States were the private places, or private streets, of St. Louis, Missouri. The earliest, Benton Place, opened in 1867. In the next five decades, over one hundred of these streets were laid out in St. Louis. Many more appeared in nearby suburbs, such as University City, Missouri. Under the covenants of these private places, the residents not only owned the street but the utility easements and sewer and water mains as well. After years of decline, the places underwent a revival in the 1960s. Most are in the prosperous Central West End, but a few homeowners associations were all-black, such as nearby Lewis Place, and were prosperous enclaves surrounding by blighted neighborhoods. Studies by urban planners, such as Oscar Newman, found that these private places were less likely to suffer from crime and other aspects of urban decay than the nearby public streets.

In recent decades, homeowners associations have become increasingly common in the United States, exercising control over 22.1 million American homes in 2005, according to the [Community Associations Institute].

There are many benefits to living in a HOA though. The biggest advantage is constant rising property values. This isn't always the case, but homes that reside within a HOA have a much better chance for property appreciation than do homes outside of the HOA.

The reason is because the president of the HOA is constantly trying to find a standard of home styles and construction that will improve the prices of the homes inside the association. There are many homebuyers that are completely willing to buy into the HOA just to have the confidence of knowing that the property values will continue to rise.

People that join the HOA are usually the type of people that keep the home and lawn well kept. They enjoy living in a beautiful community where they know the neighbors and they enjoy the feeling of living around people just like themselves.

It's very important to understand the local economy before buying into any HOA though. This is because home and property values depend on the local economy. Without a stable local economy, home values within any HOA will usually stagnate or decline. Nobody wants to go through the hassle of being at the beck-and-call of the HOA president if his or her home won't appreciate in value.

Remember, no home will appreciate in value very long if there aren't good jobs constantly available in the community. Usually, a HOA will exist where the local economy has promise. Still, I've seen many that exist in drying-up communities in terms of the job market. If you see a good deal on any home where the labor market is questionable, you need to ask yourself if it's a good idea to buy that home.

Also, we need to remember one thing; just because we have a stable job doesn't mean the local economy is thriving. Our hard-earned mortgage payments might have diminishing returns if our neighbors are struggling financially. The value of our homes could plummet without warning. That's why it's a good idea to consider living where the jobs are and the job future has promise.

Now let's talk about the downside of living in a HOA. If we are the type of person that has trouble taking constructive criticism or we don't like being ordered around, the HOA is definitely not for us. The experience will be one of fights and losses.

There might be times when you don't have a dime to your name, but you'll have to fix a part of your house or a fence or driveway. You will have to find the money from somewhere to do the repairs.

Also, your neighbors will most likely act like they did in 3rd grade when they notice that their neighbor isn't complying. People in these homeowners associations feel empowered as long as they comply with the rules. They feel as if the actions of their neighbors directly affect the value of their homes. That is actually the truth though and some people get really childish as they run to tell on their neighbors.

People that have difficulty living within these conditions should probably choose to live on their own private property with all the rights that go with it.

I hope this sheds a little more light on a very popular means of homeownership.

Larry Angell

Article Source : How To Make Money Selling

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Both Mar & Larry Angell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Mar has sinced written about articles on various topics from Food and Drink, History and Software. Related pages: ,. Mar's top article generates over 673000 views. to your Favourites.

Larry Angell has sinced written about articles on various topics from Home Management, Buying and Selling Home and Home Management. Larry Angell is the author of Sweat Equity, building a house at half cost. He runs an instructional website about how to build homes that are strong financial tools, not financial burdens. He counsels low-income families how to obtain affordable housing a. Larry Angell's top article generates over 8100 views. to your Favourites.