Homeowners' associations (HOAs) are legal entities created to maintain common areas of various forms of real estate developments, such as condominiums or other residential developments. They are made up of people who own homes in the same development. HOAs have the authority to enforce deed restrictions. Many condominium and town home developments as well as newer single-family subdivisions have HOAs.

HOAs are usually created when the development is built. They are established to ensure that the covenants, conditions and restrictions (CC&R's), which are limitations on how property can be used, are adhered to in order to maintain the quality and value of the properties in the development.

Membership in the homeowners' association is mandatory for all property owners within the development and members are usually charged mandatory fees. Homeowners associations have the authority to enact and enforce maintenance and design standards in addition to those established by city ordinances.

The homeowners' association is responsible for managing and maintaining the improvements in common areas, which are the areas that are used by all owners, as well as making and enforcing assessments of owners for maintenance and improvement expenses.

HOA Responsibilities

It is common for a homeowners' association to handle all or some of the following:

• Establish and collect maintenance fees needed to run neighborhood operations
• Maintain community landscaping
• Maintain recreational facilities
• Provide space for events or neighborhood functions
• Provide security
• Arrange for street maintenance
• Enforce deed restrictions including exterior home maintenance, commercial use of properties and control of trash

Common Areas

Generally, the association is responsible for repairing, replacing or maintaining the common area. Common areas may include streets, roadways, sidewalks, parking areas, swimming pools, tennis courts and playgrounds as well as all trees, shrubbery, other plants, landscaping and any items of personal property located in those areas. This includes repair and maintenance made necessary due to the presence of wood-destroying pests.

Architectural Controls

Architectural controls are generally part of the CC&Rs. The nature of the architectural controls depends on the type of development. If the development consists of undeveloped lots, the controls will govern the design of the houses that can be built on the lots. If the development consists of single-family houses, the controls will govern the yards and fences as well as changes in the houses. If the development consists of townhouses or condominiums, the controls will govern the external appearance of the units and certain internal conditions that may affect neighboring units.

Initially, the developer has control over architectural standards. However, once the developer has sold all of his or her interest in a development, the developer loses that control. Then the responsibility of enforcing the architectural controls falls to the homeowners' association or sometimes to an architectural control committee set up by the association and composed of association members.

Maintenance Fees

Homeowners' associations can usually require members to pay fees for common property maintenance and expenses like insurance. Fees vary depending on the community amenities, such as a swimming pool, community club house, park or golf course. Fees can be raised each year but there is usually a yearly cap stated in the CC&Rs. In addition to maintenance fees, homeowners' associations can collect special assessments for capital improvements, such as a new roof for the community clubhouse. Typically two-thirds of the homeowners must approve a special assessment.

Reserves

Generally, an association is not permitted to spend reserve funds for any purpose other than the repair, restoration, replacement or maintenance of, or litigation involving the repair, restoration, replacement, or maintenance of, major components that the association is obligated to repair, restore, replace or maintain and for which the reserve fund was established.

Questions for the Attorneys at Halpern Rodriguez, LLP

• How do I find out whether my homeowners' association has sufficient reserves for future repairs and maintenance so special assessments won't be needed?
• My condominium complex is having major projects like roofing and painting done, but my building seems to always be last on the list, and it doesn't seem fair. Can I do anything?
• I can't afford to have repairs made to my home's exterior right now; can my homeowners' association force me have the work done based on the terms in the CC&Rs?

 

Source: Lawyers.com^sm