New 5 home HOA help

First, you may want to consider if you need a HOA - when you brought your home, what, if anything, did the builder say about homeowner associations? For example, was there mention of "common areas" such as sidewalks the HOA would be responsible for? If not, you may not have to do anything and everyone would be responsible for their own property. If there are common areas, check all the paperwork you received form the builder so you can take inventory on what your association will be responsible for.

If the builder is still around (what's left of it), you need to contact that person to see if anything's been filed with the county or state to establish your HOA, and perhaps verify what's considered "common areas." Check your documents first to see if there are papers with "declaration", "articles of incorporation" "Bylaws" and "CCRs" are buried among them. If so, get comfy and start reading - you'll get a basic foundation on how the developer set up your HOA. Then everyone should pitch in and hire an attorney so he/she can go through them to see where you're at and what needs to be done, such as updating the documents to remove all references to the builder.

With 5 homes, it doesn't seem you'll need a property manager, but self management will mean EVERYONE will need to pitch in to help run the association. A HOA board usually oversees policy and overall direction of the association while the property manager handles the day to day stuff. If you're self managed, someone (everyone) will need to work together in setting a budget, hiring and supervising vendors, setting up rules, a bank account to deposit the community funds (absolutely no co-mingling of personal/association accounts!!!), etc. I would suggest you first educate yourself on the pros and cons of property management vs. self management by going to the community association institute (CAI) website - there are dozens of books and webinars on all things HOA, including self-management. If your HOA is going to be five families, I suggest everyone avail themselves of these resources.

This IS a lot of work, so at first, you might want to hire a property manager to assist you in establishing policy and protocols, along with your attorney. If you decide you'd rather hire a property manager to handle the day to day, the CAI website has good information on what to look for.

You've found this website and there are lots and lots (and lots!) of conversation ranging from setting up newsletters to avoiding embezzlement. Start with searching "HOA self management" or some variation and read some of the conversations to get an idea on how it works (or not!) As you learn more about what you'd like your association to be, feel free to come back to educate yourself, but don't forget about CAI-check if there are local chapters in your area and if it sponsors periodic seminars you can attend. Those are also great places to network with other HOA board members and related parties so you can learn from each other, get referenced for service providers, such as lawn care services, etc. Good luck!

In reality you are a x Lot HOA with 5 of those lots sold and built.

This will need to be kept in mind as the Association goes forward.

Mike,

I'd inquire about hiring a property manager. They can handle your money and handle the calls. Their services aren't required to be comprehensive, just enough (for a price) so that a third-party can administer neighborhood business, enforce your rules and allow you to enjoy living in the neighborhood.

Self-management is a job unless your HOA will only basically mow the entrance to the neighborhood or some other simple and direct duty.