Homeowners Associations (HOAs) are not a new idea. They
were first formed in nineteenth century America, as the Industrial Revolution spurred
migration from rural to urban living. Owning real estate has always been
considered a big deal, so it’s right to think of Homeowners Associations as exclusive
clubs. Sort of.
Metairie and New Orleans Homeowners Associations are open
to membership only for those who own a home in a Metairie or New Orleans HOA
development—definitely an exclusive group! (The reason for the ‘sort of’ is
because of the other qualification: homeowners are required to join).
Exclusive
membership has its advantages, to be sure, and also some disadvantages. For instance,
members have to pay fees and dues for the privilege of belonging. And, like
membership in any legendarily snooty club, members have to behave themselves.
Unlike most of those, the rules of an HOA are legally binding for all residents
in the development. Homeowners Association covenants can specify things like
exterior paint colors and what kinds, if any, of fences and/or hedges an owner
can install. They also may specify whether things like swing sets or basketball
hoops are allowed. There will almost certainly be vague language in any Metairie
or New Orleans Homeowners Association covenant to require things like
“reasonable” standards of repair for a property.
In general, the whole idea can be a good thing, because
when working as intended, it protects everybody’s property values. Indeed, a March study by the Association
Management Group showed that 70% of HOA residents are happy with their HOA
experience. However, if you are ever in the mood for some HOA horror stories, the
web is where you’ll find some really juicy ones.
For example, there’s the one about the 77-year-old Arizona
condo owner who was fined repeatedly for allowing her dog to walk through the
lobby. The HOA rules specified that dogs must be carried through the lobby. Then
there was the case of a California widower whose home was seized by the HOA
because he owed $600 in dues and fees. It was sold at auction to a third party
for a mere $2,000 (okay—even the Internet admits that he eventually did reclaim
his house).
So, on balance,
what’s a buyer to do? Below are a few ways to approach the decision before you
buy a house in an HOA development (if I’m your Realtor®,
I’ll be able to help with these):
·
The
easy part: get a copy of the covenants and bylaws. The hard part: read them.
Make note of the restrictions, and pay close attention to the sanctions the HOA
can invoke.
·
Review
the details of recent actions and pending changes to the rules (they’re
probably posted on the HOA website). Request copies of any past and present
actions or notices filed by the HOA against the selling homeowner.
·
See
if you can talk to Homeowners Association board members to get a feel for
whether the rules are strictly enforced or a more laissez faire regime is in place. There aren’t any guarantees,
though—board membership and attitudes can change.
If you do
decide to buy into a HOA development, remember the best defense is a good
offense. Get involved in the HOA by attending meetings and keeping up-to-date
with proposed changes to the covenants.
Questions about buying or selling a home?
Call Terez B. Harris at 504.297.2619
View Homes For Sale in Metairie
View Homes For Sale in New Orleans
Terez B. Harris
Terez Harris NOLA Real Estate Group
Terez Harris NOLA Real Estate Group
(504)297-2619
www.TerezHarris.com
TerezHarris@kw.com
Search the MLS!
(multiple listing service)
Search Terez's Active Listings!
TerezHarris@kw.com
Search the MLS!
(multiple listing service)
Search Terez's Active Listings!
Terez B. Harris Terez Harris NOLA Real Estate Group 504-297-2619 www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.
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