HOA's and Hero's
What You Might Want To Know About Your HOA!
It might surprise you to know that if you are living in an HOA community in the United States, you are in the company of over 60 Million people who live in over 400,000 different communities. Why, you ask are there so many HOA Communities?
In the early eighties, real estate developers were hearing that families wanted more from their neighborhoods than just housing. They wanted amenities like swimming pools, club houses, workout facilities and other family-oriented things to do. In order for the developers to be able to attract builders, and for Cities to not have to accommodate additional costs in tax collections, building and maintenance of additional roads and the amenities, the developers took over that responsibility. The Cities were delighted.
The developers create the amenities, then form a civic quasi-government (the HOA) that manages those communities. The developer also creates the covenants (laws) for the community that help to protect the value of the homes that are built. During the time the developer is selling to builders or building on their own, they operate as the Board of Directors for the community. However, developers are not in the business of managing individual homeowners and their needs for their property. They are in the business of buying and developing land and selling to builders. Frequently during the build time, that developer will hire an HOA Management Company to handle the assessments, the accounting, and the other common needs of the homeowners. At the time the community is built out, there is a Turnover Meeting between the developer and the homeowners. During this meeting, a Board of Directors is elected from the homeowner body.
Interestingly enough, and opposite of common belief, the HOA Management Company does not make decisions. All decisions are made by the Board of Directors and follow the guidelines of the original covenants.
It’s really important that homeowners attend HOA meetings to understand what’s happening in their community and who is making the decisions that affect their largest single investment, their home.
Until next time………..Go and support your HOA!
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