In part one of this two-part blog series, we went over some of the basic factors connected to homeowners associations, or HOAs. These groups, which often hold sway over a given neighborhood or housing community, may be responsible for numerous important areas for you to consider if you’re thinking about one of the real estate listings in this area.
At Daybreak Living, our numerous homes for sale include several communities or areas where HOAs are present and active. In today’s part two, we’ll go over a few other important areas you should be considering if you’re thinking of moving into a property that’s part of an HOA.
One important area to understand in advance is how the HOA is managed, as not all are run in the same ways. The majority of such organizations are run and operated by volunteer board members, generally people who own homes in the building or community area. These people have direct experience with the area, of course, and a specific interest in making decisions that benefit everyone in the community, including themselves.
In other cases, however, separate boards or governorships may be established. Some homeowners prefer this approach, as it eliminates the risk of conflicts of interest or similar concerns when homeowners from within the community are at the reins. If you’re concerned here, speak to the board president of the HOA in the community you’re considering to get a better idea of how the association is run and whether it appears robust and useful.
We discussed the standard responsibilities of HOAs in part one of this blog, including basic areas of upkeep, maintenance and even landscaping in many cases. In other situations, though, HOAs may need to take on major projects, such as replacing large brick areas or re-paving major thoroughfares.
In such situations, it’s possible a special additional cost will be presented to HOA residents above and beyond their normal dues. If this is a possibility in your HOA, ask for copies of the minutes from any meetings that discuss this sort of thing, plus request the basic budget and any significant changes being made to it.
Lenders and HOA Fees
If you’re applying for a mortgage to purchase a home in an area governed by an HOA, it’s highly likely your HOA fees will be factored into the equation. Your bank may ask to review the HOA budget before approving a mortgage, and this could alter the amount you’re allowed to borrow depending on the fees and financial standing of the HOA. If you have questions here, your lender will be happy to answer them.
For more on homeowners associations and what they mean for you as you’re browsing homes for sale, or to learn about any of our realtors or listings, speak to the staff at Daybreak Living today.
About the Author:
Utah Dave - Daybreak Neighboorhood Expert and Local Resident
My friends nicknamed me Utah Dave in high school because they said it didn't matter where we went in Utah, I would know how to get there and who we needed to talk to. The name sticks today as UtahDave has formed into a professional real estate network of Neighborhood Experts all across the state. I live in Daybreak with my wife and 4 amazing children. I enjoy dancing (which is how I met my wife Dawn) as well as traveling, coaching, and learning.