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Understanding HOAs: A Short Guide for Homeowners

If you’re buying or renting a new home in an apartment complex, gated compound or community, multi-family building, or condominium, there’s a good chance that the property belongs to a homeowners association. Most communities in the country have their homeowners association, which means you’ll hardly find a house or residential property that isn’t a part of a homeowners association or similar organization.

Before you sign the contract, take the time to learn about the HOA that covers the property you’re looking to move into for your peace of mind. And if you’re not familiar with the ins and outs of homeowners associations, here’s a short guide to help you better understand what an HOA is all about. Below are the basic things everyone should know about an HOA:

1. HOAs are the gatekeepers of the community

The above statement may seem a little vague but that’s actually what they do; HOAs are the designated gatekeepers of the community. They ensure that the community maintains certain standards to preserve the value of the properties it covers. HOAs also ensure that homeowners are safe and secure in their own homes. And finally, HOAs assist homeowners for their needs, from home repairs to emergency assistance, especially during natural disasters and other unforeseen events.

2. HOAs have a special set of CC&Rs

Every HOA in the country has its own set of covenants, conditions, and restrictions (CC&Rs). Within these CC&Rs are ruled that homeowners must follow. These rules cover everything that has to do with the property, homeowners, and the community; from the color of the exterior walls to landscaping, street parking, bikes and other toys in the front yard, garage gate, to the number of people in the household and everything in between.

3. HOAs collect fees

HOAs collect membership fees either monthly, quarterly or annually depending on what’s stipulated in the CC&Rs. Bear in mind that the bigger your property and household, the higher the fees to be collected from you. In other words, HOA dues/fees aren’t standard for every homeowner in your community.

4. HOAs can evict homeowners

In cases where the homeowner was found to violate one or several rules covered in the CC&Rs, the HOA has the power to evict them. But rest assured that eviction is the last course of action. In general, the homeowner will be approached by the HOA first to talk about the supposed violation. A written warning is also usually given, and finally, a hearing with the HOA Board of Directors could ensue to put the issue to rest and resolve it once and for all.

Review the HOA’s CC&Rs before signing the lease/deed of sale. Buyers whose offer to buy has been accepted have the legal right to these HOA documents.

Four Ways HOAs are Minimizing Risk of COVID-19 in Their Communities

When the World Health Organization announced that COVID-19 has escalated to such proportions that it has become a pandemic, countries were quick to enforce rules and restrictions to curb its spread. This meant businesses closing their physical locations, individuals staying home, and social events had to be canceled. For HOA communities, these restrictions meant keeping homeowners safe inside their homes.

As HOAs grapple with these unprecedented changes, they acknowledge the fact that they are responsible for the health and safety of their respective communities. The following are some of the ways HOAs are keeping their communities safe:

1. Strictly enforcing physical distancing

Living with the threat of COVID-19 in the air means normal things suddenly became taboo. Shaking hands, holding hands, hugging, and sitting side by side suddenly became a thing of the past. As health experts advised individuals to practice physical distancing (at least two meters apart) to help prevent the spread of the virus, public spaces were ordered to close down for the time being.

For HOA communities, these meant gyms, pools, and spas. Some HOAs chose to keep their parks open with physical distancing still strictly enforced.

2.Restriction on visits and gatherings

In keeping with the physical distancing protocol, HOAs have opted to restrict outside visitors except when an emergency calls for it. This includes medical personnel for health emergencies, caregivers, and other guests/personnel needed to assist a homeowner.

Gatherings, however, are strictly prohibited. This means parties for birthdays, anniversaries, and milestones will have to be postponed until local governments, upon the advice of health experts, lift such restrictions on group gatherings and events.

3. Postponing construction work and other contractual jobs

Construction work will have to be postponed as well except for emergency repairs. Construction work covers renovations and remodeling work both on homes and common areas. On the other hand, if the HOA has contractual employees for specific tasks or jobs, it is up to them to allow employee keep working or freeze the job order until such time when they deem it necessary (and safe) to resume work at the physical location.

4. Keeping homeowners and other stakeholders informed

Understanding that these are unprecedented times, homeowners associations double their efforts to communicate with the homeowners and other stakeholders. Keeping everyone informed about the goings-on in the community, particularly about changes in safety regulations, COVID-19 updates, emergency plans, and disaster management, is critical to preventing transmission within the community.

As HOAs grapple with the effects of COVID-19, it is their duty and responsibility to mitigate risk and keep homeowners informed at all times.

4 Changes to Expect in HOA Living in the New Normal

The COVID-19 pandemic is challenging everything we know about health and safety. And though states across the nation are beginning to ease restrictions, we shouldn’t expect an immediate return to the way things were before the outbreak.

HOAs are gearing up for the new strategies they’ll have to employ to ensure the protection of everyone in the community. With that in mind, here are 4 changes homeowners and HOA board members are likely to see in HOA living in the new normal.

1. New public space usage regulations

The safety of every resident is among the chief priorities of any HOA, so anticipate the enforcement of temporary rules that’ll reduce your exposure to crowds. Don’t be surprised to find regulations concerning social distancing and the wearing of PPEs to be in an application in common areas such as streets, parks, and clubhouses. You should also expect new systems to limit the number of people using specific facilities or amenities at any one time. For example, you may have to make a reservation before the HOA permits you access to the swimming pool or basketball court.

2. Increased board meeting flexibility

As physical gatherings are best avoided, HOA board meetings will be conducted using online technologies such as Skype or Zoom. The convenience these technologies provide will grant board members greater flexibility when it comes to scheduling and attending essential conferences. It will also make it easier for residents to participate in such online assemblies, allowing for information to flow more freely between every member of the community.

3. The reallocation of HOA resources

HOAs will undoubtedly reallocate additional funds to safety measures, with a larger percentage of the budget going to cleaning crews. As such, expect costs to rise concerning such services. However, the decreased usage of shared facilities also means a reduction in other expenses, giving HOAs and homeowners several cost-saving opportunities.

4. Extra opportunities to improve your home

The current situation is affording us more time to ourselves and our personal goals, so it will be common to see homeowners busying themselves with various home improvement projects, from trimming the lawn, to planting a garden, to making minor architectural upgrades to one’s place of residence. To make sure they aren’t breaking any rules, it will benefit homeowners to familiarize themselves with HOA guidelines and communicate their intentions to the community manager.

Do you have any questions about HOAs? If so, kindly contact us through our corporate website or give us a call at 951-270-3700. We’d be happy to answer all your questions!

3 Important Tasks of an HOA Management Company

Homeowners associations are run by homeowner-volunteers who are part of the community they serve. Being volunteers, they do not receive remuneration for their services, which means most of them have day jobs; which also means they may not always be available to fulfill their duties, especially in emergencies. This is why most HOAs turn to a professional HOA management company to help them fulfill their duties to the community and homeowners.

What does an HOA management company do? In its broadest sense, an HOA management company helps the HOA fulfill its duties to the homeowners as well as to the community. To better explain how exactly an HOA management company helps a homeowner’s association, here are three important tasks they perform:

1. Finance

One of the oft-neglected aspects of an HOA has to do with finance; everything that has to do with managing the association’s financials; from collecting dues and other fees to ensuring there is an emergency fund for unforeseen events (like natural disasters and emergency repairs), bookkeeping, managing bank accounts, billings and financial assessments, and following-up on delinquent accounts, among many others.

2. Site maintenance

In every residential community, whether it be a gated subdivision or a multi-family building, there are common/public areas that HOA members can use for leisure, entertainment, fitness, and such. From swimming pools to parks and playgrounds, walkways and pathways, and other common areas, the HOA management company has to perform regular inspections of these areas to make sure their properly maintained for the safety of the residents and guests.

Additionally, the HOA management company also sees to it the rules and regulations regarding lawns and landscaping, exterior paints, and other property-related regulations are strictly followed to maintain property value.

3. Administrative tasks

Last but not the least are administrative tasks. These include scheduling and attending board meetings, submitting a monthly report to the Board regarding management tasks, as well as ensuring that all members of the HOA strictly follow the HOA’s <a=rel”no follow”href=”https://homeguides.sfgate.com/california-homeowners-association-laws-2994.html”>Covenants, Conditions, & Restrictions (CC&Rs). Additional HOA services may also include any or all of the following:

  • Board education and governance
  • Vendor selection and cost reduction services
  • 24-hour emergency services
  • Homeowner participation, including sub-committees
  • Reconstruction and large-project management oversight

In general, HOA management companies provide custom-made programs based on the needs of each HOA. Understanding that each HOA is unique with unique strengths and weaknesses, programs tailored to address each of these are the best way to ensure that the HOA remains fully functional; serving the interests of the homeowners and the community as a whole.

HOAs vs. Property Managers: 4 Key Responsibilities

You know about homeowner’s associations and you’ve heard of property managers, but do you know what they do, and where their duties and responsibilities start and end? To help you differentiate between the two, below are a few of their key responsibilities:

On management duties:

1. Homeowners associations manage a specific residential community

Residential communities, neighborhoods, and housing complexes are often governed by a homeowners association or HOA. The HOA’s general responsibility is to manage the residential community; making sure that homeowners comply with <a=rel”no follow”href=”https://www.sandiegouniontribune.com/business/story/2019-10-19/many-new-laws-will-affect-hoas-in-2020″>rules and regulations that pertain to property maintenance and neighborhood conduct, and basically, work with the HOA to maintain specific community standards.

2. Property managers oversee a specific property (or cluster of properties owned by the same entity)

If an HOA manages an entire residential community, a property manager oversees a specific property or cluster of properties owned by the same person or entity. In other words, they are only concerned with the specific property assigned to them or for which they were hired. Usually, their services are required for rental properties; working on behalf of the property owner.

On similar duties and responsibilities

3. HOAs oversee the maintenance of common areas, collect dues, hire contractors for repairs, and vet potential homeowners

As mentioned above, HOAs manage an entire residential community, which means they are also responsible for maintaining common areas and public facilities like swimming pools, fitness centers, playgrounds, and such. If anything needs to be repaired, they will oversee the hiring of contractors and workers (this may also extend to repairs needed by homeowners for their own homes).

Additionally, HOAs may also interview people interested in renting or buying a property in their community to evaluate whether or not they are a good fit for the community. Last but not the least, HOAs are also responsible for collecting HOA dues and other fees.

4. Property managers vet tenants, hire contractors, oversee property maintenance, and collect rent and dues

Just as HOAs evaluate potential homeowners, property managers also evaluate potential tenants. This is done to make sure that not only will they be good renters in terms of taking care of the property but more importantly, that they are good payers. In other words, the property manager has to make sure that the tenant has the financial capacity to pay rent in full and on time every month.

They may also oversee the hiring of contractors and laborers for work that needs to be done on the property (for repairs and maintenance).

On HOAs and property managers working together

HOAs are run by volunteers who comprise the Board of Directors and Board Members. They are residents of the same community and they typically have day jobs and personal responsibilities to take care of every day. To ensure that the HOA remains functional for the benefit of the community and homeowners, they may hire a property manager to help them with some of their duties and responsibilities.