{"id":933,"date":"2020-07-22T06:00:38","date_gmt":"2020-07-22T10:00:38","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=933"},"modified":"2024-04-25T23:20:30","modified_gmt":"2024-04-26T03:20:30","slug":"homeowners-associations-an-hoa-boards-effect-on-your-property","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/homeowners-associations-an-hoa-boards-effect-on-your-property\/","title":{"rendered":"Homeowners\u2019 Associations: An HOA Board\u2019s Effect on Your Property"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2020\/07\/hoa-board-1.jpg\" alt=\"Image of an HOA board meeting room with large conference table for HOA meetings.\" class=\"wp-image-934\" width=\"450\" height=\"330\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2020\/07\/hoa-board-1.jpg 600w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2020\/07\/hoa-board-1-300x220.jpg 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><\/figure><\/div>\n\n\n\n<p>Buying a condo is a trade-off. <\/p>\n\n\n\n<p>On the plus side, it\u2019s the perfect way to downsize. To avoid\ndoing outdoor chores yourself, to save energy, to live simply and frugally. <\/p>\n\n\n\n<p>Buying a condo is also a great way to make the jump from\napartment living to homeownership on a limited budget, or in uncertain times. It\noffers a sense of close community \u2014 without housemates. A condo property in a\npopular area is easy to sell, and can be a remarkable investment.<\/p>\n\n\n\n<p>Condo properties do impose rules and restrictions. They must.\nTheir role is to foster a consistent aesthetic, and facilitate the successful\nsharing of close quarters. But when a rule book is in the hands of a capricious\nor dysfunctional board of directors, the convenience of condo living can be\novershadowed by unwanted drama. <\/p>\n\n\n\n<p>Let\u2019s talk about boards, and how they can impact an owner\u2019s\npeace of mind \u2014 and even the value of their homes.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">What to Expect: HOA Boards Are Big on Rules<\/h2>\n\n\n\n<p>First, the basics. It\u2019s worthwhile to take time before you\nbuy, and ask around. What\u2019s the reputation of the condo property you\u2019re buying\ninto? Read the bylaws. Get a feel for what the board has done by perusing the Declaration\nof Covenants, Conditions and Restrictions (CC&amp;Rs). This binder will lay out\nthe various rules and limitations owners and renters must follow in properties.\nDo request your copy early in the buying process, before you put your deposit\ndown.<\/p>\n\n\n\n<p>Know your <a href=\"https:\/\/www.deeds.com\/articles\/deed-restrictions-how-they-impact-homeowners-and-communities\/\">deed\nrestrictions<\/a>. Language in your deed could include restrictions on\nuse, rentals, and alterations. And if you ever might possibly want to rent out\nyour unit, or live with an additional person, be sure to talk with the\nmanagement, and ask about limits. Some condo properties wish to qualify for FHA\nloans, for example \u2014 so absentee ownership is limited by federal law to a\npercentage over the property\u2019s overall population.<\/p>\n\n\n\n<p>What other broad-brush issues could arise? <\/p>\n\n\n\n<p>Many suburban condo properties have small-town\npersonalities. People know each other. It\u2019s not unusual to find board members\nsending requests for proposals to contractors with whom they have personal\nconnections. That\u2019s legal as long as the contracts are competitive and the\nowners pay fair prices for the work \u2014 but sometimes the connectivity makes it\nhard to change protocols without social friction. As for your own professional\npursuits, generally condo boards won\u2019t stop them \u2014 unless your business\ninvolves people frequently coming and going, or otherwise goes against the\ngrain of a residential area.<\/p>\n\n\n\n<p>Now, the details. Look for provisions that answer these\nburning questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>How long can a car be parked in the same spot\nwithout moving? What about in visitors\u2019 spots, or in times of snow removal?<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>What about the visible elements of your unit? There\nmight be rules on everything from the height of your grass to the hue of your\ncurtains.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Can you keep a grill on the patio?<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Who trims the shrubs and shovels the walkways\napproaching the units\u2019 front doors \u2014 owners or maintenance staff?<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>How long can holiday decorations stay in place?<\/li><\/ul>\n\n\n\n<p>Condos generally require board approval for everything from removing\na dangerous tree to replacing an air conditioning system \u2014 possibly creating weeks\nof distress and discomfort. Boards can raise fees and impose special assessments\nwith scant warning. They can decide where outdoor lighting can be placed, and\nprohibit bikes, scooters, or sidewalk chalk. They can fine owners for leaving\ntheir waste and recycling bins out too early or too late.<\/p>\n\n\n\n<p>Dogs might be off-limits. There may be tight <a href=\"https:\/\/www.deeds.com\/articles\/age-restricted-communities-how-they-affect-your-real-estate\/\">restrictions\non having kids around<\/a>, too. <\/p>\n\n\n\n<p>You might find these restrictions beneficial, or you might\nfind them unbearable. Not everyone is cut out for condo living, so learn as\nmuch as you can about the experience before jumping in.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Spot and Avoid HOA Nightmares<\/h2>\n\n\n\n<p>Why should a potential buyer look into social media and reviews? Why check out ratings for the on-site management company? What\u2019s the point of asking the local real estate agent probing questions? Because some condo boards act, well, a little too much like the <a href=\"https:\/\/www.youtube.com\/watch?v=aOZPBUu7Fro\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Harper Valley PTA<\/a>. Need proof? Just do a search, when you get some free time, for \u201cHOA nightmares.\u201d There\u2019s no shortage of stories on Reddit, ranging from mildly entertaining to mind-blowingly exasperating. Here are some samples of HOA board actions or inactions, as reported by owners and residents of condos:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A resident gets a $500 fine for leaving a glass tumbler\non the grill.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>An owner receives a warning for failure to pull\nweeds from around the exterior AC unit \u2014 although they\u2019re neither visible nor\nreachable. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>A flight attendant gets a warning letter for showering\nafter 11 p.m. after returning home late from the airport. <\/li><\/ul>\n\n\n\n<p>Think of all the shared walls, spaces, amenities and\nequipment a condominium has. The possibilities for making and adjusting rules\non how to use and control them all can present endless opportunities for people\nto act as big fish in a small pond. Oh, yes \u2014 the ponds will have rules, too. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Board Doesn\u2019t Always Have the Last Word<\/h2>\n\n\n\n<p>Most condo properties have a good number of thoroughly reasonable\nrules. Contractors must report to the office. Alterations must go through an\napproval process. These processes should support the safety and property values\nof all owners. Basically, no upstairs resident wants anyone removing a\nweight-bearing wall on the ground floor; procedures need to be in place to\nprevent mishaps.<\/p>\n\n\n\n<p>That said, some condo boards refuse to support beneficial,\nforward-looking technologies and changes, trends or requests. Consider the\nresident who is fined over rainwater collection, or a board\u2019s refusal to allow solar\nenergy, organic lawn care, composting or native gardening. Don\u2019t assume you\u2019ll\nbe able to switch your unit\u2019s gas-powered HVAC system, furnace and appliances\nto that electric hybrid heat pump you have in mind. <\/p>\n\n\n\n<p>If certain technology or green elements are important to\nyou, check for covenant agreements covering whether and where owners can install\nnew equipment \u2014 whether it\u2019s a solar panel or a satellite dish \u2014 and look for lienable\nfines if the rules are not followed. <\/p>\n\n\n\n<p>Keep in mind that state and federal laws may be in place to back\nyou (or not) if you insist on making changes. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>California\u2019s Solar&nbsp;Rights Act directs condo\nassociations&nbsp;to allow their residents to install&nbsp;solar panels.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>State laws also govern <a href=\"https:\/\/worldwaterreserve.com\/rainwater-harvesting\/is-it-illegal-to-collect-rainwater\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">rainwater collection<\/a>. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Under federal law, condo properties must allow residents to install signal reception devices where they get proper reception; see the <a href=\"https:\/\/www.fcc.gov\/media\/over-air-reception-devices-rule\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Over the Air Reception Devices Rule<\/a> within the Telecommunications Act of 1996.<\/li><\/ul>\n\n\n\n<p>The board can make rules, but it won\u2019t always have the last\nword. So, before paying a questionable fine, check state and federal law.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Five Ways to Counter an HOA Board\u2019s Decision<\/h2>\n\n\n\n<p>Ticked off at the HOA board for its action or failure to act?\nHere\u2019s a checklist of five ways to approach the matter.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Wait out the situation.<\/strong> Eventually, new\nboard members will be in place. Support the most responsible nominees. Things\ncan change.<\/li><\/ol>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Get the issue on the agenda.<\/strong> To press the\npoint faster, be heard at the next open meeting. Address the board and other\nresidents. If anyone shares your concerns, the board\u2019s stance might change.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Write letters to the board and management.<\/strong>\nAvoid bullying or overstating your case. Try to inspire, persuade or cajole\nwithout becoming a complainer. Yes, it\u2019s a fine line.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Overturn the action by a vote.<\/strong> Attempt to\noverride the action by using the homeowners\u2019 vote provision in the\nassociation\u2019s documents. To be sure the vote is handled with fair and proper\nprocedures, check your state\u2019s Homeowners\u2019 Association Act. It will have rules\ngoverning the vote procedure. &nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Go to court.<\/strong> In serious matters, a\nlawsuit might be inevitable. Note that this is a last resort, as it can drag\ndown the reputation of a property and take your condo value down with it.\nLawsuits on properties might even stop lenders from approving new mortgages at\na property. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">If You Can\u2019t Beat \u2018Em, Join \u2018Em?<\/h2>\n\n\n\n<p>Many self-help columns advise condo residents to run for the\nboard to force change. This isn\u2019t as easy as it might sound. There might be\nprovisions on new board members needing to be greenlighted by incumbents; and,\nin any case, volunteering for a troublesome HOA board is a tough commitment to\ntake on. You\u2019ll have fiduciary duties to the community, which comes with potential\nliability.<\/p>\n\n\n\n<p>Can you be sued? Sure. Plaintiffs can sue individual board\nmembers along with associations, and they might do it, if only to create a\nsense of urgency to settle. But individual board members are personally liable only\nif they acted in bad faith or outside the board\u2019s authority. <\/p>\n\n\n\n<p>Consider an example for our times. A homeowner files a claim\nagainst the HOA and its board members asserting that a viral outbreak was caused\nby the HOA\u2019s failure to properly carry out state and county health-related rules.\nDepending on the facts of the situation, the HOA might be liable for damages,\nbut an individual board member who didn\u2019t act maliciously is unlikely to be\nheld liable. <\/p>\n\n\n\n<p>Moreover, your association\u2019s Directors and Officers\n(D&amp;O) insurance, if purchased, should defray any personal legal costs. It\u2019s\na good idea to get a copy of your HOA\u2019s insurance policies from the management\noffice before you make a decision to run. Check the association\u2019s governing\ndocuments as well; they might provide for board member indemnification for\ncosts of legal challenges to a director\u2019s official actions.<\/p>\n\n\n\n<p>If your property is run by a deeply dysfunctional board, you\nmight be ready to consider looking around at other properties, or at <a href=\"https:\/\/www.deeds.com\/articles\/owning-a-co-op-different-from-traditional-real-estate\/\">co-ops<\/a>\nwhere the residents share collaborative responsibilities and expectations. If\nso, there are a few things to keep in mind about transferring your title.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Condo Deed Conveyance: A Community Affair<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2020\/07\/hoa-board-2.jpg\" alt=\"Image of the inside of a condo living room with typical furniture and a window looking out at another condo building.\" class=\"wp-image-935\" width=\"494\" height=\"329\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2020\/07\/hoa-board-2.jpg 658w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2020\/07\/hoa-board-2-300x200.jpg 300w\" sizes=\"auto, (max-width: 494px) 100vw, 494px\" \/><\/figure><\/div>\n\n\n\n<p>Through the standard real estate sale and escrow process, a\ncondo association receives notice of the transfer of a unit. The condo transfer\nis represented by a deed with the new owner\u2019s name on the title. <\/p>\n\n\n\n<p>Outstanding dues and debts will be charged to the owner of\nrecord. These may include the costs of maintaining common elements, the water\nbills and waste management, the association\u2019s insurance, and contributions to the\nproperty\u2019s reserve fund. Associations must recover administrative costs when titles\nchange hands and the new owner comes on board.&nbsp;<\/p>\n\n\n\n<p>For these reasons, and in case of any liens or legal\nactions, tell the association if you transfer a deed through foreclosure, by divorce\nor by quitclaim, or by placing the condo into a trust. Condo owners who convey\ntheir titles should return all keys, passes and permits, averting responsibility\nfor security breaches. <\/p>\n\n\n\n<p>In short, owners of condos are part of a community-owned\nproperty as well as their unique units. It\u2019s important to be comfortable with this\ndual role.&nbsp; <\/p>\n\n\n\n<p>And this brings us back to our original observation. Buying a condo is a trade-off. Finding a well-managed condo association is a wonderful way to join a community and to <a href=\"https:\/\/www.deeds.com\/articles\/buying-a-house-to-save-money-its-a-tried-and-true-method\/\">build wealth through real estate<\/a>. Ask the right questions, and you\u2019ll find a good one. <\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credits: \u00a0<a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/unsplash.com\/photos\/yLdKV70P4kw\" target=\"_blank\">Builee Com<\/a> and <a href=\"https:\/\/unsplash.com\/photos\/jTFKo1p8ge0\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Wes Hicks<\/a>, via Unsplash. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a condo is a trade-off. On the plus side, it\u2019s the perfect way to downsize. To avoid doing outdoor chores yourself, to save energy, to live simply and frugally. Buying a condo is also a great way to make the jump from apartment living to homeownership on a limited budget, or in uncertain times. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-933","post","type-post","status-publish","format-standard","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Homeowners\u2019 Associations: An HOA Board\u2019s Effect on Your Property - Deeds.com<\/title>\n<meta name=\"description\" content=\"HOA governed properties do impose rules and restrictions. They must. 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