Top 5 New Years Resolutions for the HOA Community

Top 5 Easy-to-Achieve New Year Resolutions for the HOA

2023 is nearly upon us and at PDS, we know that HOA Board members and residents can work together to develop productive resolutions. So, we’ve put together some ideas on how to build effective New Year’s Resolutions for you HOA!

It’s true that New Year’s resolutions have a certain stigma to them of never sticking and being forgotten by mid-February. However, developing a few New Year’s resolutions that foster positive relationships between HOA Boards and residents are simple to achieve and can provide long-lasting impacts with little effort. We want you and your HOA to be ready for the best year yet! So, let’s go!

2023: No Egos Allowed

Bye-bye 2022! And bye-bye egos. Anyone who has been involved with an HOA for any length of time has undoubtedly heard of disputes between homeowners and the HOA Board, they may even have been involved in one. In many cases, HOA disputes can be settled easily. But when puffed up egos are involved (on either side of a dispute), simple matters can quickly escalate into huge conflicts. Let’s make 2023 the year where all of us leave our egos at the door when dealing with the issues that affect our communities. Or, at the very least, agree to step aside in situations where we know we are too personally invested to be impartial, fair, or helpful.

Review Governing Documents.

One of the biggest reasons for conflict in an HOA community is misinformation or misunderstanding. Board members, and residents alike, need to read and understand the documents that govern the HOA. If there isn’t clear understanding, then the HOA rules cannot be enforced or complied with properly. Clear understanding definitely equals fewer headaches for everyone involved. If you are a board member, make sure you know about ALL documents. For help in understanding what documents could be involved, check out HOA Docs and Priority: What’s Most Important?

Get Organized!

We are talking about filing reports, reviewing insurance requirements, having easily accessible Board minutes, and the like. It can sound like a huge task, but, with a simple checklist like, The Ultimate HOA Board Organization Checklist, it can be quite simple to get and keep your HOA Board organized.

Delegate and Seek Help

HOA Board members, residents, and volunteers are all juggling jobs, families, and, let’s face it, life, which leaves little time for the HOA itself. But, there are ways to lighten the burden for everyone. Can committees be utilized to investigate initiatives? How can big projects be broken up into manageable tasks? Ask for help, use your social media tools, go door-to-door, have functions, and see if small groups can form to address some of the needs.

Stay Informed

For residents, the benefits of getting to know your HOA Board are outstanding. For the HOA Board, commit to continually educating and improving your knowledge about HOA management and your community! If you’re reading this, you already know about our PDS blog, which can be a wonderful resource for staying informed about your HOA and ways to keep your community healthy, safe, and thriving. In addition to the blogposts linked previously, we’d like to offer up our Top Blogs of 2022 as a great place to start:

Top Ten HOA Homeowner Rights
Community Awareness = Safety for You and Your Neighbors
What You Need to Know: HOAs and Legal Obligations
6 Helpful Ideas to Increase Participation in Your HOA
HOA Best Practices for Board Members and Managers

Goodness…that’s a lot of resolutions…but adopting and sticking with them will be something to celebrate for years to come! In fact, let’s start the celebration now, shall we? Cheers to 2023!

 

by /Building Community, HOA for the Holidays

Changing HOA Governing Documents

Every homeowners association has governing documents including the HOA bylaws and documents outlining rules and restrictions. These documents, however, are not etched in stone and there may come a time when they will need to be amended because they are outdated, the needs of the community have changed, or the association has discerned that a new restriction would be beneficial.

Is It Possible to Change HOA Bylaws and CC&Rs (Covenants, Conditions, and Restrictions)?

The bylaws of an HOA determine how the association functions and operates. The bylaws stipulate how many HOA Board members the association will have, when elections are held, responsibilities of Board members, and what is required for community meetings.

Covenants, Conditions, and Restrictions (CC&Rs), lay out the rights, duties, responsibilities, and obligations of both of homeowners and the HOA including any restrictions, consequences of community violations, and insurance requirements.

Both the bylaws and CC&R are usually created during the development of a community. Because they are meant to provide a foundation for the functioning of a healthy and thriving community, the process for changing them is usually lengthy and detailed, but it is not impossible. Both bylaws and CC&Rs can be altered.

6 Common Steps to Amending HOA Documents

Obviously, before starting the process of amending such foundational documents, the HOA Board will want to be certain that there is an actual need to do so. Amending HOA covenants and bylaws can be a lengthy and costly process, so it should only be pursued when there is a definitive need.

Once the HOA Board has decided that a change is necessary, the amendment process can be initiated. Please note that particulars can vary depending on your governing documents, but in general, here is how such a process will normally progress:

  • Amendment Proposal

This is a description of the changes wanted to a bylaw or covenant. The HOA Board receives this proposed amendment and then submits it for review.

  • Discussion Meeting

The Board will hold a meeting to discuss the proposed amendment. The HOA Board must allow homeowners to provide their input on the proposal at this meeting. In some instances, the Board will call a special meeting in order to confer.

  • The Vote

Following the review/discussion meeting, the entire membership of the HOA will then vote for or against the amendment. Depending upon the governing documents, such a vote may need to be done by secret ballot, and/or have a specified extended voting period.

  • Counting the Votes

After voting has concluded, the votes will be tallied, usually at an open meeting of the HOA so that homeowners have an assurance of transparency as they watch their votes counted.

  • Amendment Approval

A majority vote from the membership is required to approve the amendment. What constitutes a majority will depend on your governing documents. It is common, however, for HOAs to require either two-thirds or three-fourths of the membership to approve the change.

  • Proper Recording and the Effective Date

Once an amendment to the CC&Rs has been approved, the amendment and effective date must be recorded with the county recorder’s office. Changes to the bylaws do not need to be recorded in such a fashion, but become effective once the HOA membership is given official notice of the change. when notice is given to the membership of the change.

Know the Proper Procedures to Avoid Liability

Every HOA Board should know the procedure for amending HOA bylaws and CC&Rs. If your HOA Board is approached about amending any governing documents or wishes to initiate such a change itself, please feel free to reach out to PDS for assistance as you begin the process. Following proper procedures will help to protect the HOA Board from any legal difficulties.

 

by /Certified Association Managers, Rights and Responsibilities
Top 10 HOA Homeowner Rights

Top Ten HOA Homeowner Rights

Top Ten HOA Homeowner Rights

Homeowners Associations are legal entities. Consequently, an HOA, its Board members, and homeowners all have certain legal rights — all of which should be clearly outlined in your community’s governing documents. 

So that HOA Boards and residents within the community can understand what rights are afforded to homeowners, PDS has put together a list of the top 10 rights that homeowners have within their HOA.

  1. Property Owners Have Specific Rights Under the Law

Anyone who purchases property is afforded a plethora of legal rights. These include:

  • The Right of Possession: Whoever holds the title of the property is the legal owner.
  • The Right of Control: The homeowner has the right to use their own property however they please — so long as it is legal. In an HOA, however, homeowners still have to follow the community’s rules and regulations.
  • The Right of Exclusion: A property owner can control who enters their home — a warrant or court order being a notable exception. There can also be utility easements for workers who might need to access the property.
  • The Right of Enjoyment: A homeowner has the right to participate in any activity they deem pleasurable — again, so long as it is legal.
  • The Right of Disposition: A homeowner can transfer ownership of their property to another person. However, if there is a lien on the property, the new owner will have to pay it off.
  1. Homeowners Can Change HOA Rules and Regulations

It is within homeowners legal rights to change rules and regulations of the HOA. Homeowners can choose to take action if they deem certain rules are unfair, outdated, or discriminatory.

  1. Homeowners Can Question HOA Fees and Assessments

Homeowners are required to pay assessment fees each month, however, that doesn’t mean that the HOA can simply raise fees indiscriminately. Depending on your governing documents, HOAs usually need to give adequate notice to homeowners about increases in fees or special assessments via certified mail. There may also be a limit on how much fees can be raised each year.

Homeowners can take formal action if they believe that fees are unnecessary or unjust, but they are still advised to continue paying their assessments. The HOA board does have the right to place a lien on a delinquent homeowner’s property or even file for a foreclosure to collect unpaid assessments.

  1. Homeowners Have a Right to Access Financial Reports and Other HOA Documents

HOA Board members cannot prohibit homeowners from requesting documents including:

  • Financial Reports
  • Annual Budget Report
  • Reserves Summary
  • Vendor Contracts
  • Board Meeting Agendas and Minutes
  • HOA Membership Lists
  • HOA Tax Returns
  • Governing Documents
  • HOA Rule Changes or Amendments
  • Plans for Capital Improvement Projects

Homeowners have a right to request and review such documents to see how the community’s finances and assets are being managed. 

It may be the case that the homeowner must request the documents in writing, as well as paying for copying and mailing costs. The HOA may also prohibit access to any documents that are involved in pending litigation as well as those that are bound by attorney/client privilege. 

  1. Homeowners Have the Right to Disciplinary Hearings

Before an HOA can take disciplinary action (i.e. suspending privileges or imposing fines), the HOA Board must hold a hearing and send written notice to the homeowner in advance. Homeowners are entitled to the hearing even if they are, in fact, in violation of any of the HOA rules or regulations.

  1. Homeowners Can File Suit Against HOA Board Members

If a homeowner believes that an HOA Board member or members have selectively enforced certain rules, has made negligent decisions, or has committed other wrongdoings, they can file a lawsuit.

It is worth noting that HOA Board members are protected from personal liability provided that their actions were in the best interest of the community. In addition, The HOA’s D&O insurance will cover the legal expenses involved. However, to avoid legal costs for both homeowners, the HOA, and Board members, the Board can recommend mediation as an alternative.

  1. Homeowners Have the Right to Display the Flag of the United States

The Freedom to Display the American Flag Act (enacted in 2005) ensures that an HOA cannot prohibit homeowners from displaying the American flag — even if the HOA cites architectural control reasons. That having been said, the HOAs can have limits on locations and heights of the flagpoles, as well as requiring residents to submit a written request before installing the flagpole on their property.

  1. Homeowners Have the Right to Display Political Signs

In Arizona, homeowners have the right to display political signs on their property. However, the HOA can set regulations regarding placement and size of the signs as well as how long before or after an election the signs can be visible.

  1. Homeowners with Disabilities Have the Right to Reasonable Accommodations

The Fair Housing Act enables homeowners with disabilities to have reasonable accommodations, such as ramps for access to common areas of the community and service animals being allowed in pet-restricted areas. HOAs can only deny such accommodations if other equally viable options are available. The HOA may also require the homeowner to provide documentation of the disability or that the animal in question is a certified service animal.

  1. Homeowners Cannot Be Discriminated Against

HOAs are prohibited by the Fair Housing Act from discriminating agains homeowners or potential homeowners based on race, color, sex, religion, nationality, family status, or disability. No rules can be enforced selectively nor any action taken that is rooted in discrimination.

Though these are the ten most important rights that homeowners have with regard to living in a community governed by an association, there are, of course, others that will apply in particular situations. If you have any questions regarding your rights, PDS encourages you to inquire with your community manager on the details or to reach out to us directly for any clarification that you might need.

 

by /Uncategorized

Stay Safe this Halloween!

Halloween is an anticipated and fun holiday for those who choose to celebrate it, but, unfortunately, it can also be deadly. According to the National Highway Traffic Safety Administration, on Halloween more than twice the number of children die in pedestrian-car accidents between 4:00 and 10:00pm than on any other day of the year.

At PDS we know that Halloween can be a lot of fun for you and your family, but we also know that when candy is the reward, children often run off ahead of their caretakers, undeterred by warnings, barking dogs, older kids, or, sadly, on coming cars. So we have put together a list of tips so that you can enjoy Halloween safely… this year… and in the years to come. Below are some ways that you can keep yourself and others safe, whether you are a pedestrian or a driver.

  • Try to wear brightly colored clothing. If your costume is dark, be sure to carry a flashlight or lantern (with fresh batteries that will last through the evening). Put reflectors on every possible surface, including your shoes.

  • Be sure to hold on to kids’ hands. Even if they think they are too big for that sort of thing. When children get excited about seeing their friends or an awesomely decorated house, they can forget about checking for oncoming cars. Hold on to them so that they cannot absentmindedly run into the street.

  • Use crosswalks to cross the street. Or, if crosswalks are not available, be sure to cross at corners. Even if you are in a crosswalk, be sure to remain alert. Drivers can be distracted by the same things as your children: decorations, costumes, etc., and may not be attentive to someone crossing the street right in front of them. Do not jaywalk under any circumstances.

  • If you see an oncoming car when you are attempting to cross the street, let it pass and then cross. Do not try to make it across by running. Use your flashlight to let the driver know of your presence.

  • If you are driving on Halloween evening, stay off of your cell phone, watch intersections, especially, but also be aware that children could dart out in front of you at any time, so be alert and drive extra slowly through neighborhoods.

  • Do not drink and drive! If you are at a party, either stay sober or make sure that you have a way home that does not involve getting behind the wheel of a vehicle.

  • If a car is stopped in the middle of or on the side of the road, do not attempt to go around. The driver may be dropping children off or waiting for children to cross in front of them.

Following these tips can help you and others to stay safe and to celebrate a truly happy Halloween. Enjoy!

 

by /HOA for the Holidays, HOA Neighborhood Watch Group

Community Awareness = Safety for You and Your Neighbors

Community Awareness Can Mean Safety for You and Your Neighbors!

None of us wants to be perceived as a “nosey neighbor.” But, do you know the daily habits of others in your HOA? How much would you notice if people in your Arizona neighborhood weren’t following their normal routines? 

The fact is, there is a difference between a nosey busybody and a conscientious neighbor! Being aware of the routines that your neighbors regularly follow, means that you can readily notice when something isn’t right. Such awareness can be essential to keeping everyone in your homeowners association safe.

Awareness Can Save a Life

If a member of your HOA goes out to get her paper every morning and you suddenly notice an accumulation of newspapers on her driveway, it could just be that she’s away for a few days, but it could also indicate that something is awry. For residents who live alone, having someone check on them when things don’t seem quite right can literally make a life-saving difference.

Be on the Lookout

If you’re friends with neighbors in your association, it’s likely that you’ll share with each other when you’ll be out of town or if there will be a major change in your normal routine. However, even if you and your neighbors aren’t close friends, it’s easy to watch for signs that something isn’t as it should be:

  • Accumulated newspapers
  • Mail that is overflowing out of the box
  • Nobody leaving or entering the house for days at a time
  • People not walking the dog or taking their normal daily walk.

If you notice any of these tell-tale signs, check on your neighbor. Or, if you don’t feel comfortable doing so, notify your HOA manager that there could be a problem.

Neighbors Watching Out for Neighbors

In addition to helping to keep individual members of your HOA safe, community awareness is also helpful in deterring vandalism and other crimes. Many communities form Neighborhood Watch programs in an effort to work together to keep an eye on the neighborhood and to let authorities know of any irregular or suspicious activities. Neighborhood Watch is recognized nationally for helping communities come together to help combat crime and to be better neighbors to one another. When a community is united in its vigilance against crime, neighbors can help to take away the easy opportunities that many criminals are looking for. If your neighborhood doesn’t already have a Watch in place, your local police department can help you to get one started.

More Than an Association

By virtue of owning a home in an HOA, you’re automatically a member of the association. But, being a good neighbor in a thriving community means more than just being a part of the homeowners association, it means that you and your neighbors care about each other, about the community, and the safety of everyone who calls it home.

by /Building Community, HOA Neighborhood Watch Group

Neighbors and Neighborhoods…They Matter!

Neighbors and neighborhoods help to provide us with a sense of community and offer us a safe harbor in an often chaotic world. Because of our neighbors, we are able to garner information and experiences that we would have otherwise missed. COVID made apparent what many of us may have temporarily forgotten: connection with others is essential to our health, both physical and emotional, as individuals… and to the health of our society overall.

Next to our familial relationships, neighborhood relationships are the lynchpin of connection with society. We live, learn, work, and play among the folks that make up our neighborhoods. It is where we share community with others.

To some extent, our own personal actions determine how well and how long we live, but our communal relationships and our physical surroundings play a role as well. Our neighbors can have an incredible impact on our lives by creating spaces where we feel comfortable and safe and in which we can have a sense of pride and belonging.

Good neighborhoods can actually help to shape our overall well-being. Recent studies have shown a strong correlation between strong, healthy communities and their residents’ physical and mental health. When neighborhoods are strong, residents tend to be more willing to work towards common goals together, to share information, and to work together to deter vandalism and other types of crime.

Good neighbors and strong neighborhoods also help to keep us engaged, active, and feeling needed. Healthy communities give us a chance to be of service to others, just as others do the same for us.

Because homeowners who live in healthy communities provide support to each other, our neighbors can help us in myriad ways, including:

  1. Increased confidence and self-esteem from a sense of belonging.
  2. A greater sense of purpose because we feel useful and needed.
  3. Greater resiliency from socializing with neighbors who can help us develop skills that enable us to recover from disappointments and crises.
  4. Living longer. Research has shown that loneliness is a risk factor of functional decline, particularly among those who are older. Staying social and connected with others can help to extend the length and quality of our life.

One of our goals at PDS is to make it easier for all of our community members to be great neighbors. Please feel free to reach out if you have any ideas or suggestions that you think would help to make your neighborhood an even better place. In the meantime, you might get some inspiration from our blog which includes articles on ways to show appreciation to community volunteers, how your community can work to discourage vandalism, and ideas for increasing participation in your HOA.

 

by /Building Community, HOA Neighborhood Watch Group

HOA Docs and Priority: What’s Most Important?

The sheer number of documents, rules, and regulations that govern HOAs can be downright overwhelming and confusing for HOA Board members and community homeowners alike! In order to avoid misunderstandings at to which rules or standards apply when, it is important to understand which governing documents take priority for your HOA.

HOA Documents: The Chain of Command

There are a lot of rules and regulations that apply to your HOA. But they all come from different documents that were written at different times by different groups of people. As a result, community homeowners and Board members alike may find discrepancies between some of these documents, so it is important to know and understand which documents take precedence.

  1. Government Laws

State and federal laws will always prevail over any other governing documents for your HOA. Federal laws will always rank highest over anything else, with state and then local laws following closely behind. The bottom line is that no bylaws or other rules and regulations of your HOA can supercede federal, state, or local laws. Any provision in your community rules that is in conflict with already enacted laws is not enforceable in any way. 

  1. County Plat Records

When your subdivision or community was created, a plan or map was recorded with the county. This plat provides information regarding the area of each unit of property, any easements or setback requirements, and the maintenance responsibilities for each property location. The county records may also give information regarding trash enclosures, restrictions on access for certain types of vehicles, and lighting requirements.

  1. Covenants, Conditions, and Restrictions (CC&Rs)

Coming in third in terms of document hierarchy, is CC&R. This is the Declaration of Covenants, Conditions and Restrictions that delineates the responsibilities and rights of both homeowners and HOA Board members. The CC&R also details maintenance responsibilities, assessment procedures, and the enforcement authority for the community. It also provides the process for handling any issues that may arise in terms of community disputes and violations.

  1. HOA Bylaws

Your community’s bylaws provide the information about how your specific HOA functions. The bylaws contain the particulars of how your association is run, such as when and how meetings are held, who has voting rights, and who can serve on the HOA Board. You can always request a copy of the bylaws from your HOA Board or your HOA Community Manager.

  1. The Three Rs: Rules, Regulations, and Resolutions

Whereas the CC&Rs govern the overall procedures and responsibilities of the community and the HOA Board, rules and regulations have to do with daily types of issues such as pool and clubhouse use, pet restrictions and responsibilities, what colors of paint can be used on homes, and what sort of landscaping is or isn’t permitted.

For further assistance in understanding HOA documents and how they impact you, feel free to check with your Community Manager or reach out to us at PDS with any questions you may have.

 

by /Common and Exclusive Areas, HOA Law, Rights and Responsibilities
HOAs and Legal Obligations: What You Need to Know

What You Need to Know: HOAs and Legal Obligations

There are over 70 million people in nearly 350,000 communities in the United States who are members of HOAs and remarkably, their daily lives may be impacted by their HOA Boards far more than by their local, county, state, or even federal governments!

Because HOAs and their Boards can exert such an influence over community members’ lives, it is important to understand what they are legally required to do and what they are prohibited from doing. And that requires understanding what HOAs even are in the first place.

What Exactly Is an HOA?

If you buy a home, condo, or townhouse, you may find that it exists within a homeowners association… which is most often (but not always) a nonprofit organization. The homeowners association or HOA is overseen by a Board whose members belong to the community and who are elected by the property owners within that community.

The Board exists to make and enforce rules that ensure a safe and orderly community for the residents. These standards usually involve things such as how many vehicles can be parked at each residence, pet ownership and responsibilities, what types of changes can be made to the exterior of homes (including restrictions on paint colors), and how long visitors may remain in the community for any given time.

The HOA is also responsible for maintaining the common areas of the community like parks, pools, and playgrounds; and, for keeping up the roads, lighting, and sidewalks within the community. All of these responsibilities are funded by the HOA fees and dues paid by the community’s property owners. The HOA may also collect fines from community members who violate any of the community rules.

What Legalities Are Involved When It Comes to HOAs and Their Boards?

Although the most states have similar laws for HOAs and HOA Board members, if you have a specific question regarding Arizona laws governing HOAs, you can contact a practicing real estate attorney for specific information. Although we cannot provide legal advice, PDS is also always available to provide any information you may need.

That having been said, in general, even though most HOA Board members serve on a voluntary basis and do not receive any sort of compensation for their services, Board members can be held legally responsible if they violate any of their fiduciary obligations. Such duties include, but are not limited to the following:

  • Authority: HOA bylaws and state law define the scope and limits of a Board member’s authority. It is never appropriate for a Board as a whole or an individual Board member to try to bypass the restrictions or the rights of individual homeowners within the association.
  • Care: Duty of care means that a Board member must be reasonable and prudent in carrying out their responsibilities. They must be knowledgeable about the rules and governing documents of the HOA and must avoid making decisions or taking actions that are impulsive, erratic, or arbitrary.
  • Loyalty: Duty of loyalty requires that a Board member act in the best interest of the community as a whole and never for their own benefit alone. When a Board member has a conflict of interest, they have an obligation to recuse themselves from voting or acting on that particular issue.

What If Laws Are Broken?

If an HOA or its Board has broken the law or failed to meet their legal obligations, they can be held liable. That legal action can come from members of the HOA or from any applicable government agencies.

In addition, if an individual HOA Board member has violated their fiduciary responsibilities in any way, they can face prosecution under criminal laws or find themselves in a civil lawsuit brought on behalf of the HOA and its members.

Obviously, understanding their legal responsibilities and being aware of the bylaws and state regulations governing any individual HOA is the best way for homeowners associations and their Board members to avoid any sort of legal entanglements or lawsuits. Again, PDS is here to provide any information you may need in terms of governing documents and state laws or to point you in the right direction should you need further clarification.

 

by /Common and Exclusive Areas, HOA Directory and Officer Liability, HOA Law
6 Helpful Ideas to Increase Participation in your HOA

6 Helpful Ideas to Increase Participation in Your HOA

Strong, healthy communities require participation and cooperation from HOA Board members, homeowners, volunteers, and HOA managers. But it seems that most people are busier than ever and being available for HOA meetings or events doesn’t always make it to the top of their to-do list!

If you’re looking for ways to increase community involvement and engagement, we’ve put together some ideas to help!

Publicize, Publicize, Publicize!
Make sure that you utilize all available forms of communication to let your community know about meetings, events, and volunteer opportunities. Use your community’s HOA website, newsletter, social media platforms, and email blasts (with community members bcc-ed, of course) to get the word out. Most people will participate in things that they feel good about, so always be positive and upbeat in your messaging.

Foster a Sense of Cohesion and Unity
We all know that no community or Board will agree on everything 100% of the time. However, people tend to stay away from events where they sense that there will be conflict or stress, so help your Board to present themselves as a unified body that can disagree respectfully, rather than as a contentious group always at odds with one another.

Prepare in Advance and Keep Meetings Brief
None of us wants to come home from a long workday and then sit through a meeting that is longer than it needs to be. Make sure that meetings don’t run long due to disorganization or being ill-prepared. Also, consider having childcare available or having some meetings online rather than in-person.

Reach Out Regularly
Sure, having a sign-up sheet is great, but many people won’t sign up for anything unless they’ve been asked to first. Utilize the volunteers who are already active in your community to personally extend an invitation to folks who have come to the Board with concerns or residents who have asked about having certain activities available. Volunteers are the best advocates for volunteering!

Use Short-Term Projects to Develop Long-Term Relationships
Many residents of your community may not feel comfortable making a long-term time commitment to a project or opportunity, but you may be able to involve them in short-term activities that will then lead to long-term commitment. Remember, slow and steady often wins the race!

Warmly Welcome and Openly Thank
It can be hard for a new volunteer to feel like a part of the group when they suddenly find themselves among a cohort of seasoned HOA volunteers or Board members. Make sure to help them assimilate by welcoming them and connecting them with others. Then, let them know that they are seen and appreciated! Consider having a volunteer appreciation dinner or some other event where those who have committed their time and effort are recognized, valued, and thanked.

As the saying goes: it takes a village! These are just some tips to help you build a strong, successful community of engaged participants. Use them to spark other ideas to make your community the best it can be.

 

by /Building Community, HOA Board Meetings
Are there extra fees associated with selling my home in the HOA?

Am I Responsible for HOA Transfer Fees If I Sell My Home?

Are there extra fees associated with selling my home in the HOA?

As you probably know, every Homeowner Association is different and each has their own governing documents detailing what fees are collected at the closing of a home sale and who is responsible for paying them.

That having been said, there are several fees that will most likely need to be paid to the association by either you or the buyer at escrow. Because so many details can vary from community to community, it is important that your HOA be completely transparent about the fees that are assessed at any time, as has been discussed in a previous blogpost.

Common Closing Fees:

Working Capital/Initial Capital Contribution/Community Enhancement Fee:

These fees are usually paid for at the time of closing by the buyer. They are fees that get deposited into the operating account of the association and can be used at the discretion of the HOA Board and the association’s rules and regulations. In those HOAs where the bylaws and other regulations do not call for a Reserve Fund Fee (see below), the Board will often use the Working Capital Fee to subsidize the Reserve Fund.

Reserve Fund Fee:

Usually paid by the buyer of the home, this fee is held in the Reserve Fund that enables the HOA to make capital improvements to the community and to complete routine maintenance as dictated by the written guidelines of the association. The Reserve Fund can also be used for necessary repairs that are not covered by the community’s insurance in the event of a natural disaster that results in damage. In most HOAs, the Board has third-party vendors identify the community assets and provide funding plans in order to provide for a safe, well-maintained, fully accoutred community.

Transfer Fee:

The Transfer Fee is most often paid by the buyer at the time of sale. In some cases, it is utilized by the association to cover the expenses of setting up the new owner as an association member. It can also be used by the Board, in accordance with the governing documents of the HOA, as a contribution to the Reserve Fund or to supplement the association’s operating budget.

Resale Disclosure Fee/Statement of Account Fee/Certificate of Assessment:

Paid by the seller in most instances, this is a fee that is paid to the HOAs managing agent. The amount of the fee is based on the contract that has been negotiated between the HOA Board and the management company. Some states also have laws that govern the amount of the fee.

It is important to remember that these are fees that are tied to the sale/purchase of the home and they are not tied to any future assessments or fees associated with the HOA nor can they be refunded if the buyer sells the home at a later date.

 Negotiation is always an option.

In the end, your HOA does not particularly care who pays which fees, so long as they get collected when escrow closes. Both buyers and sellers are free to negotiate who will pay which fees and can detail those arrangements in the purchase agreement. The fees themselves are non-negotiable, but who pays them can definitely be adapted to meet the needs of both parties.

 

by /Beginners Guide for Rookie Board Members, HOA Law, Rights and Responsibilities