Sun, 27 September 2015
Home Owners Association” Definition: Wikipedia defines it well- “In the United States, a homeowner association (or homeowners association) (HOA) is a corporation formed by a real estate developer for the purpose of marketing, managing, and selling of homes and lots in a residential subdivision. It grants the developer privileged voting rights in governing the association, while allowing the developer to exit financial and legal responsibility of the organization, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots. Membership in the homeowners association by a residential buyer is typically a condition of purchase; a buyer isn't given an option to reject it. Most homeowner associations are incorporated, and are subject to state statutes that govern non-profit corporations and homeowner associations. State oversight of homeowner associations is minimal, and varies from state to state.” Plus Points: The HOA defines the structure, the financial and legal responsibilities. So the documents create a structure, a sample of governing, rules and regulations.
Minus Points: The interpretation and the inexperience of many and or most of how a Board of Directors operates can sometimes cause rifts and stumbles. Granted some are better than others. Some are self-managed and do very well. Others not so well. Owners put a lot of faith in this tiny government counting on it to operate efficiently because this has to be better than cutting the grass and cleaning the gutters. It’s a toss-up, I bet.