First, let’s start by answering the question, “What is a Homeowners Association /Property Owners Association?”
An HOA or POA is an organization made up of residents that are owners of a specific subdivision or housing community. They manage aspects of those properties by creating, enforcing, and overseeing rules and regulations for the properties and the residents that live there to follow. Let me rephrase that: the Association IS THE OWNERS, and the Owners ARE THE ASSOCIATION!
There are often rulebooks that dictate how the HOA operates and what it controls. Typically, every month the members of the association (owners) will meet to discuss aspects of the neighborhood such as housing maintenance, budget handling, community maintenance, resident concerns, new residents, amenities as well as rules and guidelines for members to follow. The purpose of an HOA/POA is to help maintain the structure, maintain visual standards, and increase the value of homes in a specific neighborhood or community.
The Good!
By paying a monthly association fee, you are essentially giving back to your community in allowing the association to contribute those funds toward upkeeping and upgrading aspects of the neighborhood. This benefits homeowners in the association by keeping the associated neighborhood upkept, desirable and ultimately increase property values and keeping ownership rates high. Associations can create a sense of community that drives in buyers and families into the neighborhood.
The Bad…
There are times where association guidelines can be very confining and restrictive when wanting to make cosmetic changes to your property, even if they seem minor (i.e., changing front door color, new fence structure and material, house color, etc.). Some associations can even fine you for not adhering to their regulations (i.e., not cutting lawn or leaving garbage cans out too long, etc.). It is important that you check the covenants in the association documents and/or seek approval from your association before making any changes to your property.
The Basics…
When purchasing a property that is located within a HOA/POA, the seller is responsible for providing you with a packet of rules and regulations for the association. This packet explains the guidelines and restrictions that residents of the association are set to follow as well as the amount it costs to be a homeowner in said association (association fee). It also provides a look into the budget of the association, the repair reserves, and any ongoing issues that have been discussed in association meetings. Some associations will also conduct an inspection of the property and any current violations will be noted in the packet as well!
It is strongly advised that you read the entire rules and regulations packet in the allotted time given when purchasing a home, before signing off on it. In Virginia you only have 3 days from receipt of the packet to get out of your contract if there is something that isn’t satisfactory to you in it! So, don’t hesitate to dive right in once you receive it!
It is also important to understand what amenities and accommodations the association provides you as part of your monthly/annual association fees. These dues (based on the size of the association or the association fee amount) can cover various amenities, such as:
- Upkeep and access to association amenities ( i.e.. Pools, playgrounds, tennis courts, gyms, etc.)
- Maintenance of exterior structures (roofs, siding, painting, landscape, parking lots, etc.)
- Quality of life features (trash/ recycling dumping, pest control services, community groups, clubhouses, etc.)
TIPS FOR LIVING IN A HOA:
