A Homeowner’s Association’s (HOA) main purpose is to maintain a well-kept, secure, and harmonious living environment for their development or neighborhood. This responsibility comes with authority, but only up to a certain point. If you’re considering investing in a property managed by an HOA, here’s what you need to know:
HOAs can manage common areas and regulate activities
HOAs enforce rules through documents called covenants, conditions, and restrictions (CC&Rs). These legally binding documents cover everything from yard signs and landscaping choices to limits on dog size.
It also outlines homeowners’ financial responsibilities, including monthly dues, special assessments, and penalties for non-payment. HOAs manage a reserve fund using these fees, which covers maintenance for shared areas like pools, gyms, and clubhouses. They might also charge additional fees if major repairs or renovations are needed.
HOAs cannot bypass state and federal rules
HOA rules must comply with laws like the Fair Housing Act and the Americans with Disabilities Act (ADA). They must provide reasonable accommodations if needed and cannot discriminate based on disability, race, color, religion, or sex.
HOAs also cannot infringe on your basic human rights. They cannot prohibit you from exercising your freedom of speech or practicing your faith. HOAs don’t have the authority to enter your home for any reason, even if you have violated certain restrictions.
HOAs can enforce rules and fines
HOAs usually start by warning homeowners about the rules. If violations continue, fines are issued based on their severity. They can even limit access to community amenities for non-compliance. Residents who don’t pay the required fees may also face foreclosure. In severe cases, HOAs can take legal action against homeowners who repeatedly break the rules.
HOAs cannot impose unreasonable penalties
HOAs can set rules, but they must be fair in enforcing them. They can’t impose fines without proof of a rule violation or random fees without good reason. Before taking legal action, they must give notice and hold a hearing. HOAs are also required to consider special requests or variances, especially if enforcing a rule would cause undue hardship.
Disputes can be resolved
HOAs play a vital role in maintaining safe and peaceful communities. However, miscommunications between board members and homeowners can happen when fulfilling this role. While some issues can be quickly addressed through emails, phone calls, or formal meetings, more complex disputes may require mediation or litigation.