In your opinion, or fact - What are the duties of a HOA?

FlM,

Your expectations of an Associations responsibility would likely be in error.

An Assocaitions primary responsibility is to maintain the common area and provide services as outlined within the CC&Rs. Typically, this responsibility carries with it the need for carrying insurance, pay taxes, etc.

As for covenant enforcement: Most governing documents provide the authority for an Association to enforce the covenants (these same documents grant the exact same authority to each member of the Association). However, unless it is specifically stated otherwise, there is typically no requirement for an Association to exercise that authority (just as there is no requirement for an individual member to exercise their authority to enforce the covenants).

As for keeping values of the property up: All an Association can really do is make the development look more attractive by properly maintaining the common areas. This can encourage potential buyers to consider the homes in the development. This may have a slight impact on property values. However, there are so many other factors (proximity to medical, shopping, emergency services - rating of the local schools - crime in the area - employment opportunities - similar recent sales - etc.) that determine the actual value of your property that what an Association can do to impact values is minimal.

Florida is a different game. It is likely outlined in your community's declarations and covenants as to what the HOA is responsible for as far as maintenance and improvements. And depending on your location and what is in your community, your HOA may also be responsible to other government entities. Swiftmud, for example, may require your HOA to maintain bodies of water and conservation areas that are located in your community. If you are in a gated community, the roads will be under HOA maintenance and not county as they are private roads (at least in my county).

HOAs are obligated to follow statutes regarding the operation of HOAs.

HOAs should be responsible for maintaining existing infrastructure to a community standard. If your community demands homeowners to keep their properties to a certain standard then the HOA should be keeping common areas and amenities to the same standard that it expects of the owners on their individual lots.

HOAs should enforce deed restrictions. Otherwise, what is the point of even having deed restrictions? I think that HOAs have a moral responsibility to have deed restrictions that are reasonable, fair, and said restrictions should be fairly enforced. Deed restrictions should be concurrent with Florida statutes (such as Florida Friendly Landscaping).

HOAs should be fiscally responsible and need to be good stewards of the funding. This means maintaining adequate reserves, taking care of any existing amenities, and having adequate insurance coverage. It does not mean blowing funds on pet projects, using HOA funds for gifts and parties, etc. It also means engaging in debt collection in a fair and equitable manner. HOAs need to be fiscally responsible enough to realize when it is time to raise fees. Keeping fees stagnant and thus underfunding the community because it is a popular way to keep people "happy" and to win votes is definitely the wrong thing to do.

Another way HOAs need to be fiscally responsible is to spend the funding as it is intended and to use professional, licensed, insured contractors. Having volunteers is a nice thing until it means that corners are cut and work is substandard. It is definitely not a nice thing when a volunteer violates county ordinances (does work without proper licensure), gets injured "on the job" (falls off a ladder and breaks their arm), or in the worst case scenario- creates a liability based on their personal actions (that "Neighborhood Watch" case is a cautionary tale for every HOA in Florida).

HOAs should make improvements as long as it isn't robbing Peter to pay Paul (ie forgoing needed repairs and routine maintenance on existing infrastructure) AND future funding isn't going to be an issue. For example, you don't install a new pool when the roof is collapsing on the house. Another consideration is the cost of ongoing maintenance and repair/replacement of improvements. It is easy for a HOA to get excited about adding new things without giving thought to all of the repercussions and obligations.

In a nutshell, a HOA is a business with obligations. Businesses that slack off tend to fare worse. I can drive into HOA communities that look like a million bucks and HOA communities that look like slums.

The key word being "should."

I agree that they should, but typically, just like the members, they are not required to enforce.

Ann,

As I said, I agree that an Association should enforce. However, to use your example:

Neighbor A could have also enforced the covenants at anytime on Neighbor B. However, often is the case that Neighbor A doesn't want to do this themselves, they would rather someone else deal with the issue for them.

Most of the media relation problems that give Associations a bad name in general is over zealous enforcement. In my opinion this over zealous enforcement is due to, lets call them busy buddies, who can't allow for personal tastes in developments except for their own or with management companies who have a contract that makes enforcement become a revenue stream for them (that is, the MC gets a percentage of the fines).

On the flip side, the lack of enforcement, in my opinion, is mainly due to the lack of volunteers causing the Board to be the enforcement arm (vs. a committee) or financial limitations that don't allow the Board to hire outside assistance for enforcement.

An Association should do what is considered the right thing to do (and enforcement done fairly and equally is the right thing to do). However, an Association must do what is legally required (by the governing documents or applicable laws) to be done. Unfortunately, what is legal is not always considered the right thing to do. Often a Board can do both what is legal and what is right. Sometimes, due to various reasons, the Board may have to decide and that decision needs to be that they do what is legal.

Or as a real-life example (and bear in mind that the lots range from 0.10 acre to 0.18 acre on some streets):

1) Grandma loves John Deere tractors. She loves them so much that she has a lovely John Deere themed mail box cover. The deed restrictions say that all mail boxes are supposed to be the same color and uniformly maintained. But Grandma doesn't care (nobody has said anything anyway) and even though all of the other mailboxes are the same and just mere yards apart, Grandma is declaring her love of tractors.

Now imagine some interesting alteration on every 3rd or 4th lot. All violate the deed restrictions that are not being enforced--- all trees removed from front yard and not replaced, interesting patterns made on front lawns with decorative rocks, front yards full of a multitude of plastic lawn "décor", homes painted in a color that is not within the approved palette, bushes planted in the right of way, etc.

Such a great conversation about an important subject. Sure do appreciate the original poster for bringing this up and also, to all of you who are taking the time to respond. Feels good to be around others who care deeply about what they do.

Thanks soo much!

Excellent information on all counts. Our community - about 3 years ago - committed itself to having an aspirational community focus. This topic is explained in depth in the CAI publication which explains the difference between an administrative community and an aspirational community.

This focus, in my humble opinion, has made all the difference in the world!!...especially in terms of how it feels to live in our community, how our Board and Association relates to the homeowners...and how the homeowners relate to the Board and Association.

Regarding approvals and such, it is considered bad form for the board to become little dictators and insensitive to the needs of our homeowners. We have a covenant/standards process which seeks to balance out the difference between the two extremes - on one hand, nothing is enforced at all and standards are compromised and, on the other hand...people go around looking for problems...yikes! - ...lol...

Not a balance which is easy to achieve; however, in my opinion - is well-worthwhile making the effort.

Along with Den's citation of your FL code, your own governing documents will tell you the obligations of the HOA via its board of directors. Our CC&Rs are very specify about the duties of the HOA, via the board to maintain the common areas, provide waste pick up, water & insurance, etc., etc.

I do not think your docs say that the Board is responsible to maintain or enhance property values. But they might and if so, quote us what they say.

What do yours say, Rim?? Are some of the duties unclearly written? Are you saying that other directors--perhaps a majority of the board--are not maintaining the common areas? Or handling most or a lot of violations?

My suggestion? Make a mailbox wrap that has "Hoa" on it... See how long it takes a blind eye to use the sighted one... Or someone to play mailbox baseball...

One can NOT prevent or achieve home value by appearances ONLY. Consistent appearances adds attractiveness to a home but in no way enhances its value. I decided not to buy a house because of ugly wallpaper. How does one the devalue that home because I choose one superficial item? The bank does not. They will always deal with real numbers and risk ratios. Risk ratio being issues involving rental rates, collection issues of outstanding liens, or lawsuits filed. The HOA best serves itself by making sure it has a good collection policy over nice flowers...

What is the Hoa responsible for? Funding itself to pay its bills. Managing itself by insituting and maintaing the reatrictions the majority agree to. Hoa are internal agreements amongst all it members to organize themselves to manage for all.

HOA's were formed by developers as sales tolls to feed the masses. A HOa inder a developer control is a different animal than an owner owned/operated. A HOA under developer is to sale property/homes. It is NOT for the long term. A HOA under owner control is to maintain what everyone bought. It is long term.

Developers make their money up front. That is why they do put in amenities or install gates/security. That is cheap compared to continued long term maintenance. Good example: A pool. Cost them 20K to install. Once turned over? Chemicals, life guards, insurance, water, and maintenance/repairs can be 5 to 10K a year. No money back to the HOA. However, having a pool sold more lots.

Duties of a HOA are defined in the documents. How that is done in reality that is the real issue...

So, FIM, have you reviewed your documents yet??

I checked mine and maintaining property values isn't mentioned. We're twin tower high rise of 211 residential units.

If we (our Board & PM) did not enforce our rules about window cover colors visible from the exterior and what may be stored on balconies (hardly anything), our two towers might appear incredibly unattractive with patchwork puzzle windows, bicycles, exercise equipment and laundry on balconies that they would NOT SELL for the same price as the much more attractive high rises in my neighborhood. We enforce those rules

Our CC&Rs require us to maintain the common areas. If our pool furniture was shabby, our gym equipment out of date, our landscaping bedraggled, our building paint peeling, our lobbies looking like they belong in a geriatric home, our condos would be far less attractive than our neighbors' and would sell for far less.

Point is, if your Board does abide by the duties as described in your covenants, your HOA will sell well, especially if other HOAs in your area are run-down.