Become an HOA (Homeowners Association) Expert
A Homeowner’s Association, commonly referred to as an HOA, COA, or POA, and is a corporation registered with the state and managed by an elected Board of Directors. Its purpose is to govern the affairs of the community in accordance with the provision of the governing legal documents. The corporation is financially supported by all members of the neighborhood. Associations also set out certain rules that all residents must follow called covenants, conditions and restrictions (CC&Rs). Membership is both automatic and mandatory and conveyed with the purchase of the property.
The powers and duties of the board include: set and collect annual assessments; use and expend the assessments collected to operate, maintain, repair replace, modify, care for, manage and preserve the common areas; procure, maintain and pay premiums for insurance; contract for management of the association; amend and add to the rules and regulations governing the use of the common areas; purchase equipment; and more.
WE HANDLE: All Homeowner Inquiries Overseeing Subcontractors Obtain Bids for Subcontractor Service Bill and Collect assessments for your Association Provide a simple payment center Enforce Community Rules and Covenants Provide Financial Statements and Reports Solving Homeowner Problems Serving in an advisory role with the BOD
WE DO NOT HANDLE: Making the BIG decisions. Your board makes all the decisions for your community; we just help put them in place! Provide vendor services. We help manage, but we do not select or provide these services. Resolving neighbor to neighbor disputes. Provide public service. Your municipality and police departments handle these. Offering legal services or advice.
Understand the Finances: Assessments & Fees
Each year the Board of Directors for your community meets to discuss expenditures from the past years, funding the reserve or savings account, and takes in to consideration any planned projects for the coming year. Assessments are set by the Board of Directors and cover the business and finances for the Association. Each owner’s share is based on the projected annual expenses in the community. Board members are homeowners too and as such are obligated to pay assessments just like any owner. Board members are volunteers and do not profit from the business of the community.
Most community’s assessments cover some or all the following expenses with the homeowner’s dues: ongoing maintenance, insurance policies, utility payments, reserve funds, personnel, professional management fees.
1. Secure Online Payment through the Your HOA owner’s portal (Preferred)
2. Mailing a Check to the Your HOA processing center (please mail 10 to 15 days in advance of due date)
3. Bank Bill Payment (Please set up payment through your bank at least 10 to 15 days in advance of the due date since a physical check is mailed from your banking institution).
Please note, the owner name, mailing address and email address must match on the accounts.
Should an owner’s account go unpaid, the owner may receive up to three separate letters mailed to the mailing address on file over the course of 90 days. The first letter is a Payment Reminder, then a Second Notice and finally an Intent to Lien is mailed to the addressee. Should an owner receive an Intent Lien Notice, they are given 15 days to make arrangements for payment. The Board of Directors determines if the delinquent account should be turned over to the association’s collection attorney.
Once the closing documentation is received, Your HOA will put the account on a “closing hold”. A packet of information will then be sent back to the closing attorney. This documentation includes, but is not limited to:
- Outstanding balances or credits on your current HOA account
- Seller Certification Fee
- Additional charges associated with the purchase
HOA information for the buyer
HOA governing documents, if requested by the attorney
If a new closing is scheduled, your closing attorney will fill out a new request, and the process starts over. If you continue to have an outstanding balance after this hold is removed, then late fees would be assessed as normal, in accordance with your community’s governing documents.