What is the purpose of H.O.A's?

Question

The only time i see them out in our nieghborhood is when they are forclosing on a house due to none payment of the fee's they charge. What can I do about this? My money is supposed to go to something Right?

Answer 1

Most HOA are a good thing. They do help maintain a certain standard in your community. Some here in Texas just exist to collect dues. For what? mainating a small landscaped area in the entrance. They police you homes exterior. to what extent.
A lady that works for me reveived a ltter from her HOA saying she was in violation because she moved some of her plants in her flower beds.
My supervisor go a letter due to the fact he did not get HOA approval to move his satellite dish to a new location on his house. They are not allowed to have a shed in their backyard unless if conforms the the HOA standard.
Yes they do keep the fronts of houses nice. As a personal note. When I went looking to buy a house the first question I ased was if there was an HOA. if there was I left.

Answer 2

To understand the HOA, you need to understand the concept of owning property condominium.

Condominium is a form of ownership where you own your unit fee simple from the floors to the ceiling and the interior walls, plus an interest in the common areas. The common areas usually include the building exteriors (roof, walls, common hallways, and foundation), roads and parking areas, entry to the development, green space, and common mailbox, pool, recreation, or club house areas. Based on your answer, I'm thinking there are not a huge number of ammenities in your development.

Your community's bylaws will specify the structure of your HOA, but usually the Home Owners' Association will have to hold an open meeting at least once a year for the election of officers. The officers are usually required to physically live in the development and be owners in good standing. The association officers are responsbile for running the business of the development.

Common costs they will incur are management fees, exterior maintenance, garbage removal, water, HAZARD INSURANCE (they pay for the insurance on your home should it burn, flood, or be victim of an earthquake), liability insurance for the common areas (if someone is injured in the parking lot this saves you being sued personally), landscaping, upkeep, and repair. In addition, they should be putting a pretty sizeable amount each month into a reserve fund, which can be used to pay for big ticket items like a new roof or resurfacing the parking area.

In your development's bylaws, it should give you the right to see the HOA books. Ask for a Profit and Loss Statement and a Balance Sheet. This will tell you where the money is going.

Like yourself, your HOA board are property owners who don't want to pay too much for monthly dues. Nonetheless, they also recognize that these things must be paid for in order for everyone to be able to live in the development and increase property values. If you don't like what they are doing, run for the board yourself!

Answer 3

Yes they absolutely go toward something. Do you have an entrance into your subdivision? If so there is probably some neutral yard that needs mowed or perhaps there are flowers planted there. HOA takes care of that. Do you have convenants? The HOA would take care of contacting and finding a resolution with the people violating those convenants. The HOA protects the value of your home. I encourage you to volunteer to be on the board or run for an office or just donate some of your time helping them. They don't get paid for this, they do it because they care about your neighborhood and the value of all the homes in that neighborhood.