UNDERSTANDING YOUR HOA & BOARD OF DIRECTORS
A homeowners’ association, also called an HOA, is a non-profi t organization set up to help run, manage, and maintain a neighborhood, building, or another collective of homes. Residents in an association pay fees on a regular basis— usually monthly, quarterly, or annually— for daily operational expenses and reserve funds.
To function effectively, an HOA is led by a board of directors. These leaders are authorized to govern the community on behalf of residents and have a fi duciary duty to make decisions that benefi t all residents, not just a single home. Some of their top duties include:
• Administering association business
• Maintaining shared property
• Enhancing residential real estate development
• Establishing a system of property rights
• Creating and enforcing rules and regulations
GOVERNING DOCUMENTS & RULES
When homeowners move into an association, they sign a document, agreeing to follow the HOA’s rules and regulations, found in the community’s governing documents. Governing documents are a set of legally binding documents, usually created during the formation of an association. Included are all the materials that govern day-to-day operations, including the HOA’s declaration, bylaws, rules and regulations, articles of incorporation, and any other important rule-related forms.
Some of the most widely-recognized rules found in governing documents are:
• Architectural controls
• Holiday and lawn decoration restrictions
• Noise complaint policies
• Exterior home maintenance guidelines
• Home occupancy limits
It’s important to be familiar with your community’s rules because failure to follow them can result in consequences. Residents can view the rules and access their governing documents through the association’s website, local public records, the management company, their realtor, or the community’s board.
FEES, FINES, & SPECIAL ASSESSMENTS
HOAs generate their operating funds by collecting fees, fines, and assessments from association members. Each payment supports current HOA functions or future improvements and repairs, which are typically paid for through a reserve fund.
• Fees. Also known as dues or regular assessments, fees are the monthly, quarterly, or yearly dues that residents pay. They go towards daily operations as well as future repairs, projects, and enhancements.
• Fines. These monies are paid by residents who commit a violation of community rules or standards.
• Special Assessments. Additional fees collected to cover unexpected costs, like an increase in insurance or a surprise repair bill, special assessments are a one-time payment levied by the board. The rules and processes for adopting a special assessment vary by association.
The amounts of these payments are directly tied to the size, cost, and complexity of your association’s operations and amenities.
WHO’S WHO IN AN HOA
In addition to new neighbors, first-time HOA residents can also expect to interact with a variety of important figures in the association. This includes:
Board of Directors
HOAs are required to have a group of volunteers authorized to act on the community’s behalf to create and enforce guidelines, set goals, and protect homeowner rights. The officer roles of an HOA board include the president, vice president, treasurer, and secretary.
Management Company
The company hired to fulfill duties that board members can’t carry out. Oftentimes, it supports maintenance, accounting, and other efforts.
Community Association Manager
The community manager is the face of the management company. They’re responsible for the overall operations of the association and advising the board.
Property Manager
Property managers oversee all physical properties. They also work with tenants and owners to ensure the property is wellmaintained.
Professional Advisors
Associations need the expertise of professional advisors to protect the community and prepare it for the future. HOAs often partner with attorneys, insurance agents, and certified public accountants (CPAs).
Service Providers
HOAs may work with vendors to maintain and enhance the community. Service providers employed by your community might include landscaping, pool services, maintenance, waste management, or restoration and construction con-tractors.
BENEFITS OF HOA LIVING
Community associations have standards and guidelines to protect the investment of homeowners, sustain a well-maintained HOA, and provide many oth er benefits. Here are just a few of the additional perks:
Stable property values.
HOAs have rules and standards to keep curb appeal high, homes well-maintained, and the neighborhood safe. This translates to better property values in the long run.
A sense of community.
With common goals and shared activities, it’s easy to connect with residents and create lasting bonds with neighbors.
Convenient amenities.
HOA residents may enjoy private amenities, including pools, fitness centers, clubhouses, walking paths, playgrounds, and picnic areas.
Neighborhood safety.
Many HOAs have gated entry, restricted access to amenities, and rules for houseguests and gatherings in shared areas, which boost community security.
Conflict resolution.
HOAs have best practices in place to mediate and resolve disputes that may arise between homeowners. This helps morale stay high and prevents issues from escalating.
While HOAs may provide several benefits, homeowner involvement offers the most cherished rewards. Attend meetings, go to social events, engage with your community online, and look out for volunteer opportunities. The more you get involved, the more you’ll be able to take advantage of everything your community has to offer.
ANSWERS TO THE TOP 5 HOA QUESTIONS
Each HOA operates differently, and you should be able to consult your community’s welcome packet, board, or community manager to get the specifi c information you need. However, we have answers to the most frequently asked questions about HOA life:
1. Do I have to pay HOA fees even if I don’t use amenities?
Yes. As part of living in an HOA, residents agree to pay fees split evenly among homeowners regardless of how much they use shared areas.
2. How does an HOA enforce rules?
Typically, rule violations are identifi ed by inspections conducted by board members, management, or members of a covenants committee. Covenants committees are formed specifi cally to maintain the integrity of their associations. Other homeowners in an HOA may also report violations. Once reported, all associations have an escalation process for continued violations or non-payments. Communication is key, and chances are your HOA will work with you to resolve issues. In some rare cases, an HOA may have to take legal action against owners who continue to violate guidelines.
3. What happens if I don’t pay or break the rules?
Typically, any late payment or violation receives a polite reminder. Most violations are resolved at this level, with several warnings before further action is taken.
4. What kind of things can an HOA regulate?
In general, HOAs help ensure owners properly care for their homes to achieve a consistent look and feel throughout the neighborhood. This can include providing a list of approved home or fence colors or setting expectations for consistent lawn mowing or how often you should mow your lawn.
5. Can an HOA board change or add rules?
Your HOA’s rules aren’t set in stone. The board usually has the authority to adopt new rules for the community. However, if these rules signifi cantly alter the governing documents, then a vote by all association members may be needed.
Founded in 2007 Blackstone Management, LLC is a full-service real estate Management and Investment fi rm that operates Residential and Commercial properties as well as Owner Associations in Maryland, Virginia, and Washington, D.C.
Blackstone Management, LLC currently serves numerous customers with all sizes of portfolios and employs award-winning professionals and Maintenance staff.
Our community managers are certifi ed by the Community Association Institute (CAI) along with other professional credentials relating to the property management and asset management industries.
