The Importance of the Homeowners’ Association When Buying a Home

When you’re buying a home, there are probably a lot of things that are running through your head at any given moment. You think you’ve considered it all, but have you looked into your homeowners’ association (the HOA) at all? If you haven’t it is important that you do, as sometimes these can make your dream home situation into a chore. If the HOA community you’re joining intrudes on your lifestyle, it might end up ruining your experience. In this blog, we are going to jump into how the HOA works and what you should be looking out for when looking at properties. The team at Ebensburg Insurance is here for you every step of the way, so let's dive in. 

Parts of an HOA Community

HOAs consist of a few different elements. These include covenants, conditions, and restrictions (CCRs). These are basically the rules and regulations of an HOA community and are enforceable in court. The CCRs are the requirements of the ownership of the properties. They are usually rules or restaurants about what you can or cannot do on these properties. The goal of CCRs is to protect and preserve the value of the property. However, at the same time they can also cause anxiety and stress because of how limiting they can be. 

HOA Bylaws

The bylaws in an HOA community are written to explain how the organization is run as a business. These organizations can be either a nonprofit or a for profit, depending on who is running them. They include information that ranges from board elections to operations meetings. 

The Homeowners’ Association

The HOA itself is the board that is meant to represent the interests of people living in the community by upholding the CCRs and bylaws. The manager of the HOA is the owner of the community, while the board is made up of volunteers that live in the community or other investment corporations. Who is running your HOA makes a big difference in what the management looks like and what the processes may be. 

HOA Assesments

An Hoa assessment is a monthly/annual fee that people living in the community must pay. These fees are extra and go toward amenities for the people living in the HOA. They can include but are not limited to:

• A pool

• Use of the clubhouse (if there is one)

• Parks and playgrounds

• Sidewalk upkeep

• Trash removal 

• Landscaping and other environmental efforts

• Access to certain schools

• Salaries for HOA management

These fees are not optional and are subject to change each year with inflation and other rising costs. If you don’t pay them, your HOA management can go so far as to foreclose your property. On top of that, you may owe special assessments if there are larger repairs or improvements being made to your community or your property specifically. These are in addition to a regular assessment. 

HOA Rule Enforcement

The management team of your HOA has the ability to enforce the rules and regulations that you consent to when moving into your property. They follow the rules or covenants that were pre-set and agreed upon by all of the homeowners and representatives. The CCRs (covenants, conditions, restrictions) exist apart from any local laws that might exist where you live. The CCRs are specific to your HOA board. They cannot be discriminatory in any way, but they do tend to be quite restrictive of what you can do to your home or property. These typically include restriction on things like:

• Your house color

• The type of material you build with

• Speed limits

• Parking

• The number of people living in your home

• Home improvements 

• Noise and music

• Acceptable foliage and plants 

If you fail to follow these rules and regulations you can be subject to a variety of subjects from fines to infractions to the sale of your home. 

Look Into Your HOA Before Purchasing

If you are looking into buying a property within an HOA regulated community, it is important that you look into everything before you make your final decision. When buyers are looking for homes, they often forget to scrutinize their HOAs, which results in consequences that no one wants to deal with. It is also important to take into account how an HOA will affect your insurance. Make sure to ask the management questions about it and talk it over in depth with your insurance agent. All of the agents at Ebensburg Insurance are here to make sure your policy lines up with the rules and regulations set by your HOA. Contact us at 814-472-9557 to schedule your appointment with us today!