Advice for Buyers in New HOA

My sister & husband have owned a few homes over many years all within 7 miles of each other, but never in an HOA. They also never have owned a new home. They're moving from Redondo Beach (LA county) to the outskirts of a small city in Oregon.

The HOA is developer controlled. The developer has built a lot of communities in the NW. About 140 detached homes have been built & there're about 40 remaining lots in one section of the HOA.

The only amenities are a pool, Jacuzzi, small playground and covered pavilion with a fireplace.

I've lived in my high rise HOA for 10 years and on the Board for 8, but have no experienced with a developer-controlled setting.

What advice can you offer for contented HOA living? (Please don't write that you'd never live in an HOA or in a declarant-controlled HOA; too late for that!)

What advice can you offer for living in a declarant controlled HOA?

At this time, their dues will be $100/mo. Seem reasonable? Low?

Thanks much!

Advice for contented HOA living? Hmmm, that depends on so many different factors (some within your own control and some not). I'd say be involved, but not obsessed. Remember no one is perfect, not your neighbors and not you. To live peacefully you need to learn to deal with problems and then move on. Holding grudges is not worth it period. If they"ve never lived in an HOA it will be an adjustment for sure, especially if they have children. I wish them luck.

Good for them! and yeah, I guess your right, some of my remarks would apply to any neighborhood or or just life in general. Hard to be specific when the subject of living an "HOA life" has so many constantly changing aspects. But good luck to them!

They need to read the governing documents prior to purchasing. In reading those documents, they should see if there is anything that may prohibit something they want now (shed, fence, basketball hoop, etc.) or may want in the future.

Ask if there are Reserves being set aside and when the last reserve study was done. This will give them an idea if the development is starting out on a good financial setting or if the dues are being artificially kept low by the developer. If there are now reserves, then they should expect an increase in assessments in the future to fund the reserves.

Are the roads maintained by the county/city or by the Association?

Are there storm water management ponds (those can be as expensive to maintain as roads or a pool)? Sometimes a water feature at the entrance is actually a storm water management system.

RUN FAST ~ RUN FAR

RUN, FORREST, RUN

Kerry,
I also agree with many of the concerns others have posted above. I don't think I would choose to purchase a home in a community that was still under declarant control (just too risky). However, your sister and hubby made the choice already. They just need to stay on their toes and keep themselves informed, things can go wrong if they don't pay attention.

So to look at the positive side, I think there could be advantages. You say they have never lived in a new home, a new home can pose its own set of problems and having that developer/builder still in the the community (working and caring about his reputation) can be used to their advantage should they find a issue/problem in their new home. Sometimes the Developer is long gone and no where to be found. No matter how perfect a home looks when you move in and over the first year something usually needs to be addressed. They won't have to chase the developer, they'll have easy access to him. Tell them to be very observant and aware of any problems in their home not ignore or put off investigating potential problems. I'm sure they have warranties and are covered, usually the builder will have a clause in the contract that they will come in and fix items on a punch list after 30 days and then again at a 1 year point (but the process is easier when the builder is there to speak to face to face).

Some owners have had wonderful experiences working with developers/declarants, and been able to have their needs and desires for the future of the community addressed. IMO it would be beneficial to work towards building a friendly relationship with the declarant, that is the way to get things done. Don't build a wall, accept the fact that they have a certain amount of control/power and rightfully so. After all this is their investment as much as yours. Try to form a team vs. a war if at all possible. Once things take a turn towards hostility, the nightmare begins.

Keep 'em coming! Really good tips so far. I'll make two lists later today or tomorrow.

Your ideas may be really helpful to others who visit this forum and are being into their first HOA.

(Right, Jon; I thought my request would be respected, but....some cannot resist; imo it's all about ego.)

JonD,

Not all bad - Not all good (just like us people).

What's good about this site IMO is you get to see both sides, getting both good and bad opinions can be helpful. That's what your dealing with in the real world. If everyone here thought all HOAs were good and needed no improvement then we wouldn't learn anything about solving real problems that come up and vice versa. This forum seems to have a mix that varies from day to day, making it a little more interesting.

I've thought of some of these based on following this forum for a few years now. Here's what we have so far with a few tweaks:

Developer controlled HOA:

1. Become friendly with the developer or his rep. Avoid being too demanding if things need to be fixed

2. Review Reserves schedule to see if it seems reasonable. There probably are more items that need to be on it than they would think. This HOA does maintain the roads, so don't forget them.

3. Are there any retention ponds (doesn't seem so) that need maintenance and to be on a reserves schedule?

4. Learn local zoning. Make sure unbuilt lots are big enough to fit the rest of this HOA.

5. Learn when transition will be to H/Os.

6. If they seek & get a variance from the developer, get it in writing, and record it as an addendum to their deed.

7. Pay close attention as transition to H/O control draws near.

New in an HOA:

1. Read governing docs before closing, especially CC&Rs; Rules & Regs; ARC docs to know what they can/cannot do on "their" premises.

2. Become involved but don't obsess.

3. Learn OR HOA laws to understand their rights.

They have heard many negative things about HOAs living their whole adult lives as they do in an area that has few of them. But they looked at many neighborhoods near Bend and because so many have an outdoor style of life, they didn't like seeing all of the boats, RVs, jet-skis, etc., parked in driveways or on streets. So they bought in an HOA that forbids that practice.

NEVER, EVER, NEVER rely on what a realtor says

their ONLY objective is to complete the sale

the developer does not have authority to waive a covenant before he actually amends AND RECORDS the new covenant (unless the Covenant in effect at the time SPECIFICALLY grants him that power)

down the road a member's only recourse may be against a long gone developer when another member brings suit to enforce compliance with the Covenant in effect at the time of the 'waiver'

True enough, JohnB. I just don't know if there is a covenant one way or another about trees in side yards, or if something like ARC approval is needed.

My sister, though well educated, blah, blah, is highly impulsive (ADHD) and her spouse tends to go along with her. That's why, imo, they jumped into this without doing their homework. The trees aren't a deal-breaker in any case.

Since they're taking this leap, I just want to help them ease into a whole new way of living so they don't get too stressed.

If the Declarant is still in control, they can give/issue an exemption to most any ARC's. Just be sure one gets such in writing to prevent problems in the future but also prevent such from their adjoining neighbor now.

Try this: "Sis, you got yourself into this mess by doing the same stupid stuff you always do. It's not my problem; it's yours. I refuse to play the role of either your victim or your enabler. But do let me know how things work out."

Since they have already purchased, the advice would be:

1) Read governing documents
2) Comply with governing documents
3) Pay assessments on time or early
4) Attend every annual meeting you can
5) Attend Board meetings when possible or at least review the minutes
6) Plan on Assessments to increase after control is transferred to the members
7) Encourage the Association to have a reserve study done and then to fully fund the reserves
8) When time permits, take the time to serve (either on a committee or on the Board)

Thanks to you all!

As soon as my sis told me of their move & purchase, I sent her the dues-will-go-up warning since there probably are too low to fully fund reserves. and, of course, I explained reserves to them.

I'll make a nice list for them of the suggestions. And thanks, JohnC for noting that they might want to talk with their neighbor about their trees idea. Good way to meet them and make new friends.

Fer chri'sakes, Larry, I cannot imagine why you think her ADHD leads her to "always" do "stupid stuff." Many ADHD sufferers lead very successful personal & professional lives and she's one of them. Why not Google the names of famous folks who are ADHD?

I think my sis/husb. did not know the questions to ask when they bought this home just as many others who are new to HOA life don't know. Meantime, I'll send her a list complied for th above just as I would to anyone who asked about buying in a new HOA. That's hardly playing "victim," or "enabler."

Kerry,
I would not say it's a sure thing that the dues will go up. It didn't happen in one subdivision I lived in, they actually went down (yes, I know that's rare, but it's true). I feel most large scale builders know people nowadays are aware and leary of this scheme, and if they are a reputable builder won't want to be known for pulling that crap. Who know your sister might get lucky, why think the worse???

Presumably because the reserves were overfunded ?

Yes, I actually do amuse myself !

I also have a friend that has lived in a new development for 6 yrs., reputable builder, very lg. community and her fees have never gone up yet (they have remained the same, I'd say the finished building and the declarant has been out for about 3 years). So some developers are responsible.

I was just trying to positive, didn't say it was a trend. Your welcome

by the way I was referring to #6 on Tim's list not your comment Kerry

Thanks again, everyone. I added, btw, that they need to know if any of "their" property is exclusive use common areas (or whatever they call that in OR). The HOA mows the front years, so, hmmm...?

I remember you have mowing service, but I know nothing about yards & such in HOAs, which is why I think they should check.

Landscaping and exterior house shell maintenance is mandated in our Covenants and one of the main reasons many choose to live her. We are not an over 55 community though I would guesstimate that 1/2 our owners are. We have very few (3-4) children living here. We appeal to single professionals who do not want to be bothered with yard work.

We do not allow any landscaping "changes" to be made and as such that is one of our largest sources of covenant violations especially with new owners. Each home has a 6ft privacy fenced in small backyard. Our only real restriction for that area is nothing can exceed the height of the fence except trees and umbrellas.

Landscaping is our biggest headache in that it is the most common thing owners complain about. It is also 40% of our budget and rising.

Kerry

Tell your relatives to be careful. We do not allow anything to be planted/added in the front and side yards nor anything placed on the grass nor in the bush beds. We do allow one to place "temporary" planters with flowers, bushes, etc. on any paved area which is their front porch/entry way and in front of their garage. Over 89% of our owners do nothing. Several times a year I place/change a pot full of flowers on the table on my porch. End of my yard work.

We have recently send covenant violation to one owner that plants, overseeds, brick edged the beds, has garden gnomes, etc. She is also one that has been behind in her dues for almost a year. She is one or our problem "teenagers" and she is 40ish if she is a day.

I would not call our yards barren but they are simplistic and alike, which is the way most want it. Imagine what would happen if each yard was different and we had to work with the differences to keep the high standard we maintain. The costs would be astronomical. Each front yard does have a Crepe Myrtle. They bloom different colors and that is about as wild as we get....LOL

We are now debating those solar lights people line their driveways, walkways with. At least the Declarant was smart. When he saw such, he sent a letter saying they were not allowed but he never followed up. We recently had a claim by one owner that the landscaper broke one and wants us to pay to replace it.

Kerry,

Sometimes, it's easier to get external changes approved when the developer is in charge (especially if the development is closing out). Something your sister and brother in law should consider as well.