Homeowners Associations – To Have or Have Not

Monica King

Homeowners’ Associations are the product of the establishment of common interest residential developments. Since 1914, development builders have claimed that the imposition of deed restrictions protect property values.

Typically, a homeowners association is made up of all the owners within the community whether there are homes, condominiums, or townhouses. As non-profit organizations, it is the duty of the organization to assure that covenants and community restrictions are adhered to. For example, a covenant may require that before a homeowner builds a pool in the backyard or paints their home a new color, a proposal must be provided to the neighborhood’s association for approval; in this example, usually through an architectural review committee.

It is estimated by the Community Associations trade institute that Homeowners’ Associations (HOA’s) “governed 23 million American homes and 57 million residents in 2006. Assessments to associations have billowed to over ten billion dollars annually.

The proliferations of developments throughout Southeast Orlando typically have an association of homeowners as well as a property management group. Membership in community associations in this area is mandatory and waiving the use of community amenities does not preclude an owner from paying association fees. Non-payment of assessments can lead to liens and in rare instances, through court intervention, to foreclosure. Before buying a home in a managed community, request a copy of the covenants before committing to the purchase. Increasingly, developers are including covenant restrictions in public records to assure that the buyer is aware of the legally binding nature of community documents. Many communities are even adopting a practice of orienting new homeowners to the “rules of the neighborhood.”

In some communities, the property management group contracts and monitors services such as for landscaping while the association is more focused on building community through neighborhood activities. At Northlake Park, homeowners can look forward to some form of picnic, party, or celebration in its common area during most major holidays.

The fees assessed homeowners in association managed communities is as disparate as the people living within them. In the new Village Walk community, a homeowner’s monthly fee includes a manned gated entrance, fertilizing, watering, and mowing of individual and common area lawns, basic cable, internet, and monitoring of home alarms. At the other end of the spectrum are communities such as Nona Crest who has struggled with finding the right property management company and experienced a huge turnover of its board members.

Homeowners Association boards are generally made up of volunteers within the community. Resident volunteers should have an awareness of the HOA’s requirements to adhere to state statutes that govern associations (Florida State Statue 720) and non profit corporations. Affiliation with a property management company fosters a relationship with licensed professionals who possess an awareness of laws and finances associated with community management.

One of the biggest criticisms to HOA’s is the perception of double taxation. Homeowners whether living in HOA managed communities or not, pay property taxes to maintain roadways and street lighting. HOA assessments are imposed to maintain private roadways and park space. Local governments have recognized significant savings by mandating that developers preserve green space. In turn, maintenance of these areas is passed on to the membership of common interest community members.

HOA reign can also be viewed as somewhat less than democratic. Only homeowners have the right to vote in elections and usually only one member of the household is deemed as a voting body. On the opposite side of the argument, residents voluntarily moved into the community and the association is viewed as a private business.

An individual who owns multiple rental properties throughout Orlando and Winter Park had their own opinion of Homeowner’s Associations. “We purposely avoid them. Most homeowners associations do not like rentals and we find them difficult to work with. Sometimes fees are downplayed and become a huge monthly expense, particularly when associated with violations of covenants.”

A community or neighborhood should be more than just another destination in a homeowner’s day. Just as an association is only as good as those who participate in it; the sense of community extends beyond those who live in it to those who participate in building it. Both non-owner and owner residents must recognize and accept responsibility for following community guidelines established to foster safe and healthy communities.