HOAs Regulation and Celebration

In the realm of residential communities, homes serve as more than just physical dwellings; they are integral parts of homeowner associations (HOAs), entities responsible for overseeing various facets of homeowner behavior, property aesthetics, and communal spaces within neighborhoods.

Within the vibrant state of Arizona, over 30% of residences find themselves within neighborhoods governed by homeowner associations, a figure notably surpassing the national average of roughly 22%, according to data from industry reports. Astonishingly, Arizona stands out as the fifth state in the U.S. in terms of HOA prevalence, clinching the second position for the highest mean monthly dues, estimated around $450.

Among these communities, the monthly dues often encompass access to a host of lifestyle-enhancing amenities, spanning sports courts to sparkling swimming pools. However, for neighborhoods without such facilities, these dues primarily fund the upkeep of shared spaces, maintenance of parks and playgrounds, and on occasion, community festivities and gatherings.

Homeowner associations have long sparked discussions surrounding their merits and demerits, with sensational stories occasionally emerging about their policies and perceived extent of authority. Yet, it's important to recognize that these stories usually represent the exception rather than the norm. Here's a glimpse into some prevalent HOA regulations that potential homeowners might find useful to acquaint themselves with prior to finalizing a property purchase within an HOA-governed community.

The Function of HOAs: Each HOA operates uniquely, adhering to its own established set of rules and regulations, known as Covenants, Conditions, and Restrictions (CC&Rs). The board governing the HOA possesses the power to impose fines on homeowners and collect dues. The primary role of an HOA is to enforce policies that contribute to the preservation of property values within the community.

The Scope of HOA Influence: HOAs hold the capacity to regulate various activities within a community, encompassing rules related to architectural aesthetics, adornments, landscaping upkeep, parking arrangements, pet policies, and rental guidelines. Communities lacking HOAs to uphold communal standards often rely on the cooperation of neighbors to maintain the neighborhood's visual appeal – an approach that can yield mixed results.

Enforcement by HOAs: The responsibility to enforce adopted policies falls squarely on HOAs, a duty that results in the imposition of fines on homeowners for infractions that range from parking violations to disregarded landscape maintenance, and even rentals inconsistent with community guidelines. These infractions, among the most common HOA violations, also extend to matters like off-season holiday decorations, noisy pets, and unauthorized architectural alterations.

Fees Tied to HOAs: Alongside regular monthly HOA fees, purchasing a residence within an HOA-controlled neighborhood involves several additional fees that facilitate the property transaction process. The buyer typically shoulders the HOA transfer fee, averaging between $200 and $250, which accounts for the administrative work tied to the transaction. Conversely, the seller bears the responsibility of the disclosure fee, covering the transfer of essential documents such as CC&Rs and bylaws. Capital improvement fees, aimed at bolstering the HOA's financial stability, are often collected during property transactions, with the negotiation of payment responsibilities forming part of the purchase agreement.

Balancing Aesthetic Unity with Personal Freedom: While HOAs diligently work to preserve a community's value by adhering to a specific visual harmony among homes, potential homeowners must weigh whether this type of living environment aligns with their preferences. Those seeking greater autonomy concerning parking choices and architectural expression might opt for communities devoid of HOA oversight, recognizing that an HOA-based lifestyle might not align with their aspirations.

However, this trade-off implies that homeowners will need to find common ground with neighbors who similarly value the liberty to park their vehicles where they please and adopt distinct architectural styles. As with any choice, both options come with their own advantages and disadvantages. The key is to enter into the situation with a clear understanding of expectations, ensuring that relationships, whether with an HOA or neighbors in an HOA-free community, can unfold as seamlessly as possible for all parties involved.

Written: 8/3/2023