Rising HOA Fees and Assessments the Causes

It is my opinion that self managed communities are dealing with rising HOA fee's in part because without Professional Management often times Capital Improvements, and Energy Efficiency are overlooked. Also putting bandaids on huge projects is wasted money. We find ourselves spending money on the same thing that should have been done properly in the first place. Because the BOD is totally a volunteer body, in our particular case we have BOD members who are making major decisions without any expertise or experience in matters. Lack of planning and ignorance of upcoming legislation most likely will cause us some pretty hefty assessments with respect to operations. I do see well self managed communities but what is your experience and opinion please? thanks

Hi John well said but I do expect due diligence and the ability to seek consensus. Actually I do not think the problem is why should I care I may not be here tomorrow is in our case not applicable. The majority of the Residents inherited their homes, (free) they have nothing invested as compared to us that bought with a great deal of money. Their concern should be what will I live to my heirs (?) if that is not important then who does what is not something they want to deal with.

Hi Gertrude,

Out of curiosity, are you talking about condominiums or single family homes? I ask because, typically, there is far far less projects for a single family home HOA.

As others have said, some of the issue is lack of community involvement. This lack of involvement may be due to time constraints, the desire to spend free time with family vs. meetings, the lack of understanding of how Associations work, bad experiences with Associations, being happy with the way things are being done or any of a number of other reasons. Without membership involvement, those who are willing to serve will be the ones who serve. It won't matter if they have the expertise or not. They will be the ones making decisions on behalf of everyone who lives in the Association.

Keep in mind that even if an Association is professionally managed, you still have a Board of Directors made up of volunteers. Since the PM or MC works for the Board, utilizing a PM or MC will not mean that things will be better. It will simply take some of the work load off of the Board.

I live in a 130 lot self managed Association. For 10-15 years I didn't get involved in the Association. Then one day, the Association did something I was against. I gathered support and was able to make changes within the Association. I believe that those changes were for the better. Hopefully, others within my Association believe the same thing. However, I have devoted a huge amount of time serving on Committees and now the Board to make those changes and, honestly, am starting to become burned out. If I move, this burn out may keep me from becoming involved in my next Association. If I stay, I know it will have me stop being involved as much as I am now.

Like you, I prefer to spend money once and do thing the correct way the first time rather than utilize band-aid repairs. This requires someone to step up and put in the time to find out what the correct way is. Even if someone does take that time (be it a volunteer or an MC), the Board is still strapped by financial constraints. Then the decision becomes, can we wait another year or two until we have the money, ask for a special assessment or do we have to do something now with what funds are available?

Are you involved with your Association?

Tim, my comment was for you.

... and to bear all responsibility with no right to expect neighborhood standards.

But when you purchase a home in a neighborhood with an association all members are supposed to be involved in the decision making process (not necessarily by serving on the Board, or committees, but at least showing up at meetings and casting a vote) then everyone is truly a part of the decision making process. When most members are apathetic in a neighborhood then IMO the HOA suffers in many ways.

Keep in mind that even if an Association is professionally managed, you still have a Board of Directors made up of volunteers. Since the PM or MC works for the Board, utilizing a PM or MC will not mean that things will be better. It will simply take some of the work load off of the Board.
Really? that's discouraging oh well thanks everybody for the good info.

My association is self-managed, but from what I've read here and elsewhere, I've got doubts about your premises that having a management company will typically improve long term cost control or energy efficiency. It seems that many MCs are more concerned about finding ways to generate more revenue for themselves than strategic, long term planning about what is best for the association.