{"id":4379,"date":"2024-07-15T11:40:46","date_gmt":"2024-07-15T15:40:46","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=4379"},"modified":"2024-07-15T11:40:47","modified_gmt":"2024-07-15T15:40:47","slug":"so-many-homes-in-hoas-is-this-the-future-of-houses","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/so-many-homes-in-hoas-is-this-the-future-of-houses\/","title":{"rendered":"So Many Homes in HOAs\u2014Is This the Future of Houses?"},"content":{"rendered":"\n
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It\u2019s your deed. But it could come with community-wide restrictions, as well as a long list of homeowners\u2019 association rules that support those restrictions. If you value privacy and autonomy, this might be just what you\u2019re trying to avoid. You want ownership \u2014 not other people telling you how to live.<\/p>\n\n\n\n

But it\u2019s getting harder and harder to find homes apart from community deed restrictions. Even free-standing houses are now typically built for neighborhood associations, and managed by HOA boards<\/a>.<\/p>\n\n\n\n

What gives?<\/p>\n\n\n\n\n\n\n\n

Builders Find Homeowners\u2019 Associations Easy to Establish.<\/h2>\n\n\n\n

Today\u2019s new developments are built according to the latest standards. They have shared drainage systems, cluster mailboxes, one garbage pickup contract. Setting up an HOA makes a builder\u2019s work straightforward. And during the development phase, only one big property needs protection and upkeep \u2014 not hundreds.<\/p>\n\n\n\n

The sheer efficiency of communities run by associations means the homes can be less expensive than independent properties. Some people love homes with built-in amenities, roof maintenance, and landscaping services. Many HOAs offer private entrances to trails, and pools, summer yard sales, holiday parties, you name it. For a fee of a few hundred dollars a month (although it could be a four-figure number, especially in the cities), the buyer gets all kinds of perks and time-saving services.<\/p>\n\n\n\n

In short, systems for shared communities are efficient for developers \u2014 and these homes tend to sell easily.<\/p>\n\n\n\n

Sometimes they sell because they\u2019re the only game in town. Consider North Carolina. Since 1999, under the state\u2019s Planned Community Act<\/a>,\u00a0new subdivisions come with homeowners\u2019 associations.<\/p>\n\n\n\n

Buyers Might Find Drawbacks They\u2019d Hoped to Avoid.<\/h2>\n\n\n\n

Those who leave the rental scene and buy into a deed-restricted community might find their board adjusting the monthly HOA fee yearly. That\u2019s reminiscent of rent, and can be a downside. Given inflation and the rising costs of maintaining a whole community\u2019s infrastructure, when buyers agree to an HOA fee<\/a> (sometimes called assessments or dues), that figure is unlikely to ever go down. It may well rise year by year.<\/p>\n\n\n\n

Oh, and don\u2019t forget to consider those abrupt rises in condo and homeowner insurance premiums<\/a>.<\/p>\n\n\n\n

Ask your agent questions about all the extras that come along with the costs of living in a deed-restricted community. Here\u2019s <\/strong><\/em>how to find a good agent<\/em><\/strong><\/a>.<\/strong><\/em><\/p>\n\n\n\n

As with the rental scenario, buying into the condo or neighborhood association means following rules. The difference is that homeowners in associations at least get a vote when rules are added or changed.<\/p>\n\n\n\n

That said, as anyone living in a deed-restricted community can tell you, the rule-crafting power is largely in just a few hands. Sure, you can run for an opening on the board, but that\u2019s time-consuming work.<\/p>\n\n\n\n

And keep this in mind. While boards can change and add rules, they generally can\u2019t undo restrictive covenants<\/a> that run with the property. In short\u2026<\/p>\n\n\n\n

Encumbrances on Deeds Are Not Selling Points.<\/h2>\n\n\n\n

An association\u2019s restrictions are encumbrances on the deed. This means selling a condo, a townhome, or a freestanding home on a community association\u2019s property could be a little harder in areas where buyers actively avoid these associations.<\/p>\n\n\n\n

To buyers, the limitations on ownership may feel burdensome, and sometimes arbitrary. There\u2019s a certain uniform appearance that must be kept up, and fines for those who fall short. In some states there can be hassles over signs \u2014 even political speech<\/a>.<\/p>\n\n\n\n

Furthermore, in many deed-restricted communities, the homeowner does not own the land under and around the home. While the outdoor maintenance provided by staff can be a huge benefit to a buyer, some people want to have their own land, be able to put up a basketball hoop, solar panels, HAM radio antennae or a satellite TV dish. They might dream of building a deck or a firepit\u2026 and so on.<\/p>\n\n\n\n

On the other side of the coin, as we\u2019ve noted, most associations provide a set of constant conveniences.<\/p>\n\n\n\n

And the prices on association-controlled homes are typically lower.<\/p>\n\n\n\n

For a good many buyers, these things are<\/em> selling points. To get an idea of desirability of the home you\u2019re considering, check the property\u2019s other listings online to see how fast they\u2019re snapped up.<\/p>\n\n\n\n

In the Carolinas, HOA Unit Owners Are Speaking Out.<\/h2>\n\n\n\n
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When a state receives complaints against associations or the property managers the associations hire, the gripes typically involve fines, or lack of access to the HOA\u2019s records, or feeling shut out of the decision-making process.<\/p>\n\n\n\n

At the moment, North Carolina\u2019s 14,000 HOAs (home to nearly a third of the state population) are facing public scrutiny<\/a>. Speaking to lawmakers, a resident reported one HOA for neglecting the deed holders. Amenities that these unit owners fund through their fees aren\u2019t open to the residents, and delays keep mounting. Residents suspect that \u201cthe developer has done this in order to mitigate his expenses\u2026\u201d<\/p>\n\n\n\n

Another HOA dweller said residents can attend board meetings, but they hardly get time to be heard. After a few minutes of the \u201copen\u201d part, the board carries out the rest of the meeting in private.<\/p>\n\n\n\n

A representative from the HOA lobbying group Community Association Institute (CAI) told lawmakers in the House Select Committee on Homeowners\u2019 Associations that North Carolina HOAs already have transparency requirements. They must offer an annual board meeting, open to the unit owners.<\/p>\n\n\n\n

Just one open meeting a year is required? Perhaps we shouldn\u2019t be surprised that one deed holder told lawmakers an HOA community was behaving like \u201ca secret society.\u201d<\/p>\n\n\n\n

Throughout the Carolinas, millions HOA unit holders could use more control over their properties and their daily lives. So far this year, lawmakers have given them a mixed bag.<\/p>\n\n\n\n

In South Carolina in the 2023-24 legislation year:  <\/p>\n\n\n\n