Do some HOA's manage themselves? (sucessfully)

I did, for multiple years in Arizona, and my current HOA has apparently been doing it for going on 35 years now. it all depends on the HOA... size, amenities, by laws, CC&R's, location, etc..

Thanks for the info Brian.
We are about 70 homes on half acre lots. Only amenities are a 15 acre wooded common area which requires no maintenance and some vacant lots. The developer in our sub who has been MIA for 6 years is turning over HOA to homeowners in March. There has not been an active HOA yet. It is going to be interesting to see how this develops. About half the residents are in favor of dissolving the HOA. If there is to be one, I want to know what all the options are.

Valerie,

We are an 80 member community with a common pool and tennis courts. We have been self-managed for the entire 18 years that the homeowners have had control of the association.

The results have been mixed. Sometimes we get a very competent board with the time to do things right -- sometimes the insurance coverage lapses because no one is checking the mail, or the books don't balance because the treasurer doesn't understand basic accounting.

After all this, we are now considering hiring a management company just to keep a consistent and reliable level of service to the homeowners.

Valerie: Our community is 50+ newer homes on half acre lots in Michigan. We get regular requests from homeowners to get rid of the management company to lower dues, as the management company accounts for roughly 25% of their dues. These requests ALWAYS come from people who have never served on the board. All current and former board members, those that know what it actually takes to keep things running smoothly, have commented that they would never be on a board without a management company in place. Of course, you have to make sure you're working with a good management company -- that's the most important part.

It is frequently brought to our attention by our homeowners how other nearby bigger communities do not use management companies and their dues are much lower. Why do we then need one? What the homeowners don't realize is that these bigger communities, with "slightly" lower dues are not being advised or saving for their reserves (which will cost their homeowners in the long-run), have had lapses in both their non-profit filings and insurance (which exposes ALL homeowners to litigation liability), and have a much higher delinquency rate without the assistance of a management company for consistent collections. Additionally, the management companies have relationships with many local vendors, which at least makes getting multiple quotes for jobs much easier and, in some cases, has resulted in lower bids than we could have secured on our own.

Could we run our community properly without a management company? I think so, but it would depend on all board members educating themselves and putting in considerably more time than they do currently. Because our community is so small, we have a hard time even finding 5 people who are willing to volunteer to be on the board even with a management company in place. The management company offers some continuity between board transitions, provides a single point of contact for homeowners (believe me, you don't want people showing up on your doorstep every 10 minutes), and can limit your exposure by keeping every on track.

Yes, some do to varying degrees of sucess. Years ago I served on several HOA Boards but in today's litigeous society, and having more knowledge of the laws, I would never serve on a Board that did not have a competent Managing Agent.

Susan the roads ARE private and without the final cap the developer was supposed to put on before turning it over, and yes there is a sign.
From the responses, I see drawbacks and benefit to the idea. Thanks again for the insight.

I have to say, distasteful as I original thought the idea of an HOA to be. It is a something of a fascinating subject.