HOAs explained:
Five things to know about homeowners associations.
About half of Valley homeowners live in homeowners associations, but many don’t realize the responsibilities that come along with that. If you live in an HOA or are considering buying into one, make sure you know these five basic things to avoid headaches and potentially high-dollar penalties.
What is an HOA?
An HOA is exactly what it sounds like — a mandatory association made up of the homeowners in a neighborhood.
If you buy into a neighborhood with an HOA, you agree to live by a set of rules called the covenants, conditions and restrictions, or CC&Rs. These documents are unique to each HOA but can include landscaping and maintenance requirements for the outside of the home and limitations on things like street parking. HOAs also come with mandatory dues.
What powers do HOAs have?
HOAs usually have control over anything on the outside of the home. Specifics can vary and are outlined in the CC&Rs, but here’s a look at what an HOA typically manages:
Condominium: Condos usually come with heftier HOA fees, but that’s because the association will take care of everything outside of your unit. That means if your paint starts to wear or your roof gets leaky, the HOA likely bears the cost. But condos also can have stricter limitations than other HOAs. They’re known to control the number (and sometimes type of) pets you can keep in the unit and the numbers of renters and vehicles you can have.
Single-family home: In a traditional neighborhood HOA, the homeowner is responsible for the upkeep of the outside of the home, and the HOA has the power to make sure they do so. HOAs can fine homeowners for things like excessive weeds or holiday decorations left up for too long. They can also require the owner to repaint the house (in a color that fits the neighborhood’s character) or replace broken roofing tiles.
What can an HOA charge?
Regular assessments: Every HOA has regular dues that go toward maintenance of common areas, enforcement, etc. Sometimes these are due monthly, while others are only owed once a quarter. The costs can range from $50 to $1,000, and the board can vote to raise them to account for rising costs.
Special assessments: If there’s an emergency cost (a condo roof breaks, a pipe bursts in the community park, etc.), the board can ask the homeowners to approve a special assessment, which is due on top of the regular assessment. If enough homeowners approve the additional cost (it depends on the HOA, but usually 51 percent is required), then the additional fee will be levied.
Late fees: If you don’t pay your assessments on time, the HOA can charge late fees, rolled into your balance.
Fines: If you break one of the association’s rules (leave your garbage can out too long, don’t pull your weeds, etc.), the association can slap you with a monetary penalty.
What happens if I don’t pay?
If you don’t pay the regular or special assessments, the HOA can take drastic steps to recoup its money.
When a homeowner falls behind, an HOA can take the individual to court and get a judgment for the money the association is owed. Then, it can use a variety of tactics, including garnishing wages, to retrieve the money.
If the amount owed is more than $1,200, or if a homeowner hasn’t paid an assessment in more than 12 months, the association can seek foreclosure and sell the home at auction. A 2017 Arizona
Republic investigation found HOAs are foreclosing on a record number of homeowners — more than 3,000 in the Phoenix area since 2015.
Why are there so many HOAs?
There are at least 9,000 HOAs in Arizona, and about half of all Valley homeowners live in one. Why? Because HOAs save cities money.
Neighborhoods are more than just groups of houses. They also have streetlights, paved streets, retention basins and sometimes parks.
Those things cost money that cities don’t have — or don’t want to use. Instead, they encourage residential developers to take on that cost, and the developers create an association to pay for and maintain these features throughout the existence of the neighborhood.