HOA's...Blessing or Curse?

If you don’t live in a subdivision governed by an HOA you may be shocked to learn about how much power they have over the property owner. So much power that the right to quiet enjoyment of your property can be stolen from you effortlessly. So much so that, IF you are unable to pay your dues they have the right, and don’t hesitate to, foreclose on your property. The HOA has no problem obtaining a “priority lien” to collect the fees. You’d be shocked to hear of how many homes across the country have been foreclosed on by community Homeowner’s Associations. As if life isn’t hard enough these days.

One Homeowner’s Association in Edgewater, Florida votes this week on banning children from playing outside! “No bikes, no…no skateboards, no skipping rope, no loud voices”…no childhood. They believe that they are justified because they don’t have a community playground so “the occupants should have made a better choice about where to live”. Sadly there is every possibility that the HOA will win. What would you do if you and your family were living in a community that BANS children from playing outside? If the HOA gets its way, the homeowner can do one of two things. Abide by the rules or move.

I recently read about a single mom in Texas who lost her job and was struggling to keep up with all of her expenses. She fell behind in her dues for a few months but was able to catch up on her payments minus the $100.00+/- added to her bill for “legal fees” incurred to collect the HOA dues. She believed that this fee was no longer applicable because she paid her dues up-to-date before legal action was forthcoming. Nope. They foreclosed on her property for less than $200! Her home was completely paid off…she hit hard times…she paid her dues…but she LOST HER HOME because of the power of the HOA. This happens far more often than you would ever imagine.

I live in a large lot subdivision in Virginia that has raised my HOA dues from $400 per year when I first moved here 12 years ago to almost $6,000 a year now. Amenities? NONE. Services? NONE. We get our road frontage mowed and the snow removed in the winter. That’s it. Quite a price to pay for little return, don’t you think? There are gated communities with 24/7 guards, a community pool, tennis courts, trash service, high speed Internet and snow removal that pay far less than we do in our small Purcellville subdivision. Where is the rationale in that?

My property has been forced into an unmarketable position. The ability to sell has been drastically impaired because of the amount of the dues that can’t be easily justified to the potential buyer. How can you explain away almost $6,000 a year? As if this market doesn’t have enough problems of its own…nobody in their right mind would willingly take on these dues for more control than return on investment.

Of course, there are some that would chose to live within an HOA at ALL costs. They are so focused on the “risk” that they might get stuck with a bad neighbor that could “devalue” their property because of an above ground pool or a dirt bike. How did we get sold such a bill of goods that we believe that we have to surrender ALL property rights so that we have someone else to fight our “bad” neighbor battles for us? Does that really make sense to you?

Most people believe that they are forever stuck in HOA jail. Most are not aware than an HOA can be abolished and the property rights and management can revert back to the individual property owners. Majority rules in this case, based upon the by-laws of the individual HOA. If the majority votes to abolish the HOA it gets abolished.

So, what would you do? Would you fight to remove the HOA or are you so paranoid about someone painting their door the wrong color or one too many cars in the driveway that you would quietly remain in bondage to the rules and the governing power of the HOA?

I believe that the Homeowner’s Association agenda needs to be addressed and the power needs to revert back to the homeowners at all costs. I’ll deal with the risk of a “bad neighbor” or a front door painted the wrong color. Frankly, $6,000 a year would buy me a lot of legal advice to battle the challenges…if they ever come my way.

Think long and hard about your next purchase. Consider the power that the HOA will have over you and your family if you buy into an HOA subdivision. Keep looking…it will be worth it in the long run.

Do you have an HOA story or want to provide input? Please write to: HOAfacts@gmail.com.