Homeowners association
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A homeowners association (sometimes HOA) is an organization comprised of all owners of units in a housing development, which may or may not be part of a gated community.
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[edit] United States
In the United States, the vast majority of homeowners associations are incorporated and are therefore governed by a board, which is in essence a private government.
Some of the developments that real estate developers build are common-interest developments, a category that includes planned-unit developments of single-family homes, condominiums, and cooperative apartments. Before the first unit is sold in one of these developments, the developer records restrictive covenants on all of the properties. These "run with the land", meaning that all successive buyers are bound by the same covenants as the original purchaser (though some jurisdictions require renewal after 20 or more years). These covenants, among other agreements, form the basis for the homeowners association.
Covenants and deed restrictions are exclusionary by nature, and in the first half of the 20th century were racialy motivated. A typical covenant would read: "No part of said property hereby conveyed shall ever be used or occupied by any Hebrew or by any person of the Ethiopian, Malay or any Asiatic race.."[1] Although the federal courts ruled such covenants unenforceable years earlier, private agreements kept them alive at least into the 1960s — the decade of emergence for the civil-rights movement. The Fair Housing Act of 1968 rendered them illegal
Modern Homeowners associations collect fees, fines, and other assessments from homeowners, maintain the common areas of the development, and enforce the association's governing documents. These may include detailed rules regarding construction and maintenance of individual homes. The common areas maintained and governed may include landscaping, common buildings (e.g., clubhouses) and recreational facilities such as swimming pools), common walls in attached housing developments, and infrastructure such as streets, mailboxes, sidewalks, and parking lots.
Often, a homeowners association collects special assessments from all its members in addition to set fees. Assessments can be made to cover legal expenses for a judgement against the homeowners association, to repair damage from a natural disaster, or to make improvements. Special assessments have no set limit, and have reportedly exceeded $100,000[2]
In some U.S. states, California or Texas for instance, a homeowners association can foreclose a member's house without any judicial procedure in order to collect special assessments, fees and even a fine. Other states, like Florida, require a judicial hearing.
Homeowner association litigation is on the rise. In states such as Colorado and California and others that have adopted the Uniform Common Interest Ownership Act, homeowners associations may have standing to represent their members in an action against the community's builder for negligence or other causes of action.[1]
Some of the responsibilities that the covenants delegate to homeowners association boards would otherwise be performed by local governments or require private legal action under civil law.
Nevertheless, association boards are almost always amateur volunteers, and do not require training, certification or the possession of credentials of any kind.[3]
In recent decades, homeowners associations have become increasingly common in the United States, exercising control over 22.1 million American homes and over 50 million Americans in 2005, according to the Community Associations Institute.
[edit] =Advantages and benefits
Associations can require the protection of trees and other native vegetation, such as requiring that landscaping and construction be done in a manner that is not harmful to the environment, including both the ecology and the neighbors. This however is mainly limited to natural areas, such as those surrounding resort communities, as newer suburban developments typically are dense and therefore destroy most existing natural features.
Where neighborhood roads are private, an association can compel residents who share the road to pay equally for maintenance, particularly where crusher run must be occasionally put down to keep up a gravel road. This also goes for running wells to provide drinking water. Again, this is most applicable to semi-rural areas, as municipalities (or counties and townships) typically provide these services in urban and suburban areas.
Homeowners associations can also mount legal challenges to other developments in the area that are out of place or character, and threaten the enjoyment of the community. This however may cause conflict within the association if some residents disagree.
A goal of a homeowners association is the preservation of property value. It does this[verification needed] by enforcing its governing covenants. It makes sure that all properties are attractive and consistent with each other. As an example, this prevents one home from being painted pink while all the other homes are painted brown.
An active homeowners association may have numerous subcommittess, such as social committees, pool committees and neighborhood watch committess.
[edit] Controversies and criticisms
There are many criticisms of homeowners associations, most notably that they can wield the power of a government without having to submit to the checks and balances and other responsibilities of one.
Some homeowners believe the may be victimized without due process or appeal.
Association Regulator Edward Hannaman, of the Bureau of Homeowner Protection of the New Jersey Department of Community Affairs reported these observations of association conduct:
"Curiously, with rare exceptions, when the State has notified boards of minimal association legal obligation to owners, they dispute compliance. In a disturbing number of instances, those owners with board positions use their influence to punish other owners with whom they disagree."
"Perhaps most alarming is the revelation that boards, or board presidents desirous of acting contrary to law, their governing documents or to fundamental democratic principles, are unstoppable without extreme owner effort and often costly litigation."
Many if not most of the problems affecting Homeowner Associations today can be explained by another statement taken from the Hannaman Report:
"The complete absence of even minimally required standards, training or even orientations for those sitting on boards and the lack of independent oversight is readily apparent in the way boards exercise control."
[edit] References
- David T. Beito, Peter Gordon, and Alexander Tabarrok, eds., The Voluntary City: Choice, Community, and Civil Society, University of Michigan Press, ISBN 0-472-08837-8/
- Evan McKenzie, Privatopia: Homeowner Associations and the Rise of Residential Private Governments, Yale University Press, ISBN 0-300-06638-4
- New York Times article, "Homeowner Boards Blur Line of Who Rules Roost" by Motoko Rich July 27, 2003
- Who needs an HOA? http://www.aboutmyhoa.com/whoneedshoa.htm
- Ronald M. Sandgrund and Joseph F. Smith, "When the Developer Controls the Homeowner Association Board: The Benevolent Dictator?" The Colorado Lawyer, January 2002, p. 91.
[edit] Notes
- ^ See, e.g., Heritage Vill. Owners Ass'n Inc. v. Golden Heritage Investors Ltd., 89 P.3d 513 (Colo. Ct. App. 2004).
