Homeowners unite: What an HOA really does

There are probably a lot of wants on your dream house wish list. Laundry room. Walk-in pantry. Hardwood floors. Good neighborhood. Chances are, belonging to a homeowner association doesn’t top your list. After all, it’s just a boomer posse yelling at kids for using chalk on the sidewalk, right?

While it’s true an HOA has rules, its role is generally for the benefit of the community as a whole — not just would-be sheriffs. So no, you probably won’t have malcontents driving through the streets on a golf cart, ticketing houses for installing one too many pink flamingos in a flower bed. Although some may be more restrictive, most focus on maintaining an attractive neighborhood, quality amenities and beautiful communal spaces. 

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Common place

Most condominiums and townhomes have HOAs, and it is not unusual among single-family homes, either. In Utah, some 27.1% of homeowners are part of an HOA, according to a 2022 report by iProperty Management. That’s nearly 196,000 homes in 3,430 homeowner associations.

Gated and planned communities with amenities — pool, clubhouse, playground, bike trail — almost certainly have a homeowner association. The monthly or annual fees that members pay go toward maintaining those facilities, as well as groundskeeping for any common open spaces.

If there is an HOA, you will most likely be required to become a member if you buy a home there. Even if you promise to never dip your toes in the hot tub.

Decision makers

An HOA is usually governed by a volunteer board of directors, made up of homeowners within the planned community. They are often elected, just as a city council member would be. For the majority of associations, a management company does the clerical work, like collecting fees and sending out notices. But it is the board that decides what the rules and bylaws will be.

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Rule book

Each HOA has its own Declaration of Covenants, Conditions and Restrictions. This is where all the regulations and bylaws are written. Typical CC&Rs might include rules concerning your property such as:

• Fence type: no chainlink allowed
• Landscaping: yard must be 80% lawn
• Decorations: Easter bunnies over 8 feet are prohibited
• Garbage: containers must be hidden from view
• Home displays: no year-round political signs 

You may also need the board’s approval before making any major changes, such as building an additional garage or adding a she-shed. The CC&Rs may include restrictions in other areas, as well. Sorry, no llamas or roosters. Leashed cats are OK. No street parking between midnight and 6 a.m.

Changes and exceptions are seldom made to CC&Rs. So, if your annual light shows are key to your happiness, be sure to check if they’re allowed before buying into the neighborhood.

Fine with that

Of course, with rules come penalties. HOAs can assess fees or require forfeitures for code violations. That usually includes fines, but could also mean a suspension from a facility. If fines (or dues) go unpaid, a lien can be attached to the property. If you try to sell the home, you’ll need to settle the debt before the sale can go through.

Some management companies may be aggressive in sending out violation notices. However, it usually means simply fixing a problem — say, spray weed killer on your dandelions — to quickly resolve an issue.

Pay for play

Having a pool or playground can be a definite plus to living in an HOA-controlled neighborhood. But all amenities come with a price. Homeowner association fees typically range from $250 to $2,500 per year. The more facilities, the higher your fees will likely be. The governing board can vote to change the amount, so you could see an increase (or decrease, if you live a charmed life) as the need arises. 

Some of the funds may be kept in reserve for future projects. Savings might also be used for emergencies. For example, if a tornado touched down and tore the roof off the clubhouse. However, if there isn’t enough money in the coffers, the HOA could assess an additional fee for repairs not covered by insurance.

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Good times

It may seem like a lot of rules, but most homeowners don’t mind living in an HOA. In fact, a majority of residents favor them, according to a 2022 nationwide survey by the Foundation for Community Association Research.

• 89% of residents agreed their HOA was a positive experience
• 68% agreed having one protected their property’s value
• 87% felt their governing board worked in the best interest of the homeowners

Those surveyed also agreed that safe, clean, attractive neighborhoods are the best perk of living within an HOA. 

Boards are also useful for settling touchy issues. Ever had a neighbor who makes excuses for his dog barking at 1 a.m.? You can turn to the board to mediate when you have a dispute. Want to get your neighbor to stop letting weeds run wild in his yard? Property-related rule violations are also up for discussion. Instead of confronting neighbors repeatedly, it’s nice to have a buffer. And maybe less embarrassing if you tend to turn into a certain gamma ray persona when you’re upset.

If the neighborhood is in an HOA, a current copy of the CC&Rs must be made available to prospective buyers prior to closing. You can find them through the local county recorder or the Utah Department of Commerce. You can also look at budget and financial statements. 

If you feel you can live with the rules, and afford a little extra cash, you should be perfectly comfortable. If you think you’d be stifled — must have 27 garden gnomes! — then maybe look elsewhere. Find your future single-family house, condominium or townhome on KSL Homes.