Homeowner Associations (HOA) aka Community Interest Developments (CID's)
Homeowner associations keep neighborhoods in order and are set up to protect property rights. If your aim is to purchase a HOA controlled property, be prepared to follow all the rules. Study and learn the rules of the community, get an association's CC7R's (covenants, conditions and restriction). Review the finances and reserves and participate in the governance of that association if possible. It is a volunteer organization.
However they may usurp those rights by becoming overbearing.
Getting into a dispute with a homeowners association can be very risky
CID's share use, cost and maintenance of amenities, create rules about home appearance and property usage for members. An area for concern is the finances of the group and it's reserves for contingencies and unexpected costs. If they fall short they will have to tap the homeowners pockets with special assessments to cover costs. Those "special assessments" can drive association compliant homeowners crazy. Association members can be faced with compounding fines for late association dues as well as liens on their homes for does and fines past due. They can even face foreclosure proceedings.
Conflicts can arise between associations and homeowners bout style preferences such as colors and decorations. If you sue the association for any perceived onerous assessments, you are in fact suing your neighbors and not just the "association." Some states have government offices providing education and enforcement of homeowners association laws and provide arbitration in dispute resolution. Many associations oppose any government oversight.
Should a legal dispute arise, homeowner associations have the resources of the entire associations to back them up. The homeowner has to file a private lawsuit and put heir own financial resources at risk. This could run up huge legal bills.
|
