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Since 1964, homeowner associations have become increasingly common in the USA. The district Associations Institute trade association anticipated that HOAs governed 23 million American homes and 57 million residents in 2006.
Homeowner associations can present different problems. Contact a Real Estate Lawyer to have all of your homeowner associations questions answered.
Associations can oblige homeowners to pay a share, typically per-unit or based on square footage, of common expenses. These expenses generally arise from common property, which varies radically depending on the sort of association. Some associations are, quite literally, towns, whole with private roads, services, utilities, amenities, community buildings, pools, and even schools. Others have no common property, but may charge for services or other matters determined to be in the finest interests of the association. For instance, an association can bring lawful challenges adjacent to other entities as determined by the board of directors, or membership vote if the governing documents so require.
- Financial Risk for Homeowners - The AARP has recently voiced concern that homeowners associations pose a risk to the financial welfare of their members. They have proposed that a homeowners "Bill Of Rights" be adopted by all 50 states to protect seniors from rogue associations. In some U.S. states, California or Texas for instance, a homeowners association can foreclose a member's house without any judicial procedure in order to collect special assessments, fees and even a fine.
- Homeowner Associations Board - They can also collect special assessments from its members in addition to set fees, often without homeowners' vote. Special assessments sometimes require a homeowner vote if the amount exceeds a prescribed limit established in the Association's by-laws.
Increasingly, homeowner associations handle large amounts of money. Homeowners often do not pay attention to the business of their association. Embezzlement from associations has occurred, as a result of inattention and dishonest board members or property managers. This has been a difficult problem, and losses can (and have) been in the millions of dollars.
See Also:
Litigation
Homeowner associations can present different problems. Contact a Real Estate Lawyer to have all of your homeowner associations questions answered.
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