Find A Home: Homeowners Associations
Homeowners associations set limits but also offer benefits
By Liz Baker TENNESSEAN CUSTOM PUBLICATIONS
When building a new home, there are many things that should be taken into consideration: floor plan, lot size, roofing, landscaping. But individual homeowners aren’t the only ones who have an opinion when it comes to matters to your home. One entity, a homeowners association, could have a say in how an owner constructs and designs a home — all for the good of the entire neighborhood.
“The purpose of HOAs is to protect the homeowner’s investment and maintain and enhance the value of the homes and the community,” says Jim Spangler, managing partner and owner of Marquis Homes.
When a neighborhood is being established, often an HOA is established by the developer. If you are building in a newer neighborhood, you more than likely will fall under an HOA and be required to construct your home under the guidelines of the association. Fortunately, your builder will already be familiar with the rules and guidelines.
“All of our homes that Grande Estate Homes and Marquis Homes build are in communities that are controlled and managed by an HOA management company. We builders must follow the same governing documents as a homeowner would,” says Spangler.
Derek Huggett, a sales counselor with Pulte Homes, says that if a homeowner wants to make a change to the property (such as adding a fence or changing the roof’s shingle color) during or after the construction phase, the HOA might still have to be consulted.
“Our associations typically require that all changes to the exterior go through a modifications review process by the HOA board,” says Huggett. “We do our best to educate our buyers on what to expect with the HOA before they make a commitment to purchase.”
But HOAs have other goals in addition to maintaining a uniform streetscape for the purpose of sustaining home values. Spangler says these groups typically govern and manage the maintenance of common areas and amenities (like pools and playgrounds) and pay for trash removal and parking lot and/or street maintenance — some HOAs even provide security, he says. In addition, the association can even serve as a mediator.
“It allows for a third party to handle and deal with customer complaints that a neighbor might have on another neighbor without the direct confrontation,” says Spangler.
Since there can be many CC & Rs (covenants, conditions and restrictions) that come with HOAs, home buyers should consider carefully whether such an association would fit their lifestyle. Spangler suggests buyers consider the following in order to be prepared:
- Always ask for the governing documents when purchasing a home within a community with an HOA.
“Homebuyers should definitely read through the HOA documents before deciding to purchase,” says Huggett. “The reason being is that no two HOAs are the same. The documents are unique to each community, and, therefore, so are the rules and regulations.”
- Ask about the HOA fees and how they are paid — are they monthly, quarterly, yearly? Remember that many times, these fees can change with little or no notice, so you will want to know the exact process for rising fees.
- Ask for the current year’s HOA budget to see where the money is being spent. This will help you feel more comfortable about paying the fees to begin with, but it can also allow you chances to question why something is or is not being covered.
- Inquire if there are any special assessments within the community you are buying into.
- Look at the budget and make sure there are adequate reserves set aside for that community for repairs that will come up from time to time, eliminating the possibility of having a special assessment for a shortfall of the reserve.
HOAs can be very beneficial, but you should know what the rules are going in. To learn more about requirements in a community that you’re considering, be sure and discuss the matter with your builder.
