Residents are often unclear about what exactly a homeowners association is, why it is in place and the tangible benefits of HOA management. Your HOA is a non-profit mutual benefit corporation. That means it has a fiduciary obligation (i.e. it is legally required) to protect the assets of the corporation, in this case the multi-million-dollar asset that is your home and the other homes in your community. Your HOA board of directors is comprised of volunteers who donate their time to make important operational decisions that will create a lasting positive impact on your community to maintain or increase the value of your home.
In addition to overseeing the execution of a community’s shared rules & regulations, your HOA performs vital lesser-known functions that ensure the protection of your investment.
Your HOA ensures that your community is maintained in the condition in which it was built.
Your HOA is responsible for maintaining your community’s common areas, ensuring that they stay safe and attractive. Your community’s rules & regulations are designed to ensure that each resident can maintain their own separate property in a way that enhances the value and enjoyment of the community for all residents. This includes things like setting guidelines for new construction, exterior paint colors, landscaping parameters and general maintenance of outside spaces. In doing so, your HOA helps residents maintain the standard of living that makes your neighborhood attractive and welcoming.
Your HOA creates a sense of community that attracts desirable residents.
Your HOA management team fosters community spirit that helps residents connect. When neighbors are personally involved in their communities, it helps keep property values at a maximum by attracting higher-caliber homebuyers who are interested in maintaining a secure and inviting community. Your HOA promotes community spirit in multiple ways, including:
- Maintaining clean and inviting common recreational areas
- Planning community-building events
- Issuing regular updates through newsletters and community bulletins
Your HOA ensures that your dues are used appropriately.
Your homeowners association is legally obligated to ensure that the income the HOA receives is used prudently and productively. In other words, your HOA must be good stewards of the association’s funds. Your HOA makes sure that the dues collected are commensurate with the level of service residents receive (i.e. not over- or under-charging residents), wisely invests any extra funds in safe bets like mutual funds, CDs and treasuries, and hires reputable consultants including legal teams, financial advisors and property management companies to protect your community, financially and legally.
Your HOA oversees your community’s long-term plan.
Times change and so do communities. Your HOA is a constant presence, ensuring that the amenities keep pace with your community’s shifting needs and desires. For example, bocce ball might have been a huge selling point in 1978 but today that space might be better used as a basketball court. By adhering to a long-term vision and allocating resources appropriately, your HOA ensures that the community meets the contemporary needs of current and potential residents.
Your association’s governing documents outline the allocation and usage of funds as well as the obligations of residents and the HOA board. These documents should have been provided to you at the close of escrow. Your association’s governing documents and other HOA management resources are also generally available on your community’s website. Finally, you can always contact your management company for more information about the role of your homeowners association and all the additional ways your HOA strives to protect your investment.