Why do we have an HOA?
HOA functions and information
Many of us are not familiar with how the HOA works or why we even have one. It is completely understandable as many of us grew up without ever belonging to an HOA. We used to have homes built on individual lots instead of the group approach to community development. Increasingly (as cities have expanded), developers chose to adopt HOA's as a tool to manage expectations of home buyers and to give themselves control as they develop "the cookie cutter" approach to community developments.
HOA's have also given rise to many property management companies who are hired to manage the basic operations of an HOA. There is a vast difference in the quality of these companies as well as understanding of the nuance of these contracts. Property Managers do not live in the community so their knowledge of issues in a neighborhood are limited to what others pass on to them. They are also limited to what they can do as they only have the authority to complete the specific scope of functions based on a contract with the HOA.
A company or a person (assigned property manager) can make all the difference in the success of a community. However, without board members who remain active and give the property manager direction and approval, very little will be accomplished.
If enough of us do not pay attention or take the time to learn about the CONTRACT (that our community signs with the property management association) we may end up getting caught in a never-ending trap to "throw our money away”.
The contract spells out the tasks that the property management association is expected to perform for the HOA and details the rights of both parties. Community members need to pay attention to the duration (1 year, 3 years etc) of the contract and board members should plan to review the details of the contract well in advance before the written notice (normally 60 days’ notice) must be given to terminate.
An HOA works just like a mini government. If individuals do not take the time to learn the rules and regulations (or expectations) and then attend the annual meeting to VOTE to elect leaders with our community’s best interest in mind, then we will never move forward.
We follow the bylaws and Declaration of Covenants, Conditions and Restrictions (DCCR’s) that were written by the developer for the city that we live in. These documents are basically cookie cutter documents and are similar to the neighborhoods around us. They are publicly available documents registered with the city and all homeowners should be given a copy at closing when they purchase their homes.
We must also follow our own community specific POLICIES. Policies can be state or city mandated OR adopted as the board deems necessary.
Our HOA fees go toward payment of a property management company to collect our fees, answer homeowner questions and manage the subcontracts. (landscaping, insurance policy, pay taxes, etc). The property management company that we hire (through a contract) oversees the daily operations and is expected to assist homeowners with issues/questions.
A representative of the property management company also drives the community for violations once or twice a month. These violations are listed in the HOA's DCCRs. The board has taken the time to list them out here in a format that is easier to understand. If you are a first time homeowner, this list may be used as a reminder of the maintenance issues to follow to care for your home. The property inspector will then send out a courtesy notice directly to the homeowner if an issue needs to be fixed. We waste a lot of money on these violation letters and it would be appreciated if everyone could just follow the basic rules to keep our community neat and clean.
We have 5 homeowners serving on the board of directors. Every 3 months, these 5 board members are required to meet as a group and minutes are taken for the official record. Homeowners who cannot make it to quarterly meetings, should have access to the formal minutes on the property management portal. The board members also work out and vote on issues through email every week. Of the 247 homeowners, we must have 5 people step up to serve in the board positions every year or two (depending on length of position). That means we should all consider serving at one time in the future so that we can split the duties and help each other keep our HOA functioning well. Training is available for new board members and there are many sources to call upon for advice.
Our HOA has a social committee that has a goal to bring our community together. We currently bring in a different food truck on the third Thursday of the Month (March-October) and just wrapped up our Summer movie nights in the park. The Social Committee also chooses the Yard of the Month. The winning homeowner receives a sign highlighting their yard and receives a special gift.
It is also up to the board of directors to identify how and when communications are sent out to help keep all informed. Currently, we have a communications committee that writes our email updates and newsletters (sent out with the quarterly bill to save money) and we have a welcome committee to welcome new homeowners and renters with information and a gift to let them know we are glad they are here. (We sometimes need help identifying when renters move in as they are hard to track so if you have a new neighbor let us know to welcome them). There is no contractual obligation to create or send out a newsletter and the property manager does not live in the community so they are not aware of an issue unless a resident reports it. If you have information to share or would like to help create newsletters, information emails, information to share in our welcome package or items for the bulletin board, your voice is welcome and needed!
Once a year, the whole community meets at an annual meeting to discuss issues of concern, approves the annual budget and elects new board members. In order for the meeting to be successful (and official business to occur) at least ten percent of the community (25 people) must attend the annual meeting. The annual meeting is also a chance to get to know your neighbors and voice the issues that are important to you.
Social events may be the best opportunity to get to know neighbors in a relaxed atmosphere. Social events (such a movie day, picnics, holiday parties etc) are only held if one of us volunteers to organize the event and it is approved by the board to spend the HOA funds to pay for it. The annual budget includes money set aside for several social events each year.