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Helpful Tips

Become an HOA (Homeowners Association) Expert

Condominium, townhomes and many planned developments that include single-family home neighborhoods are considered associations. This means that there are common elements to the property enjoyed by all homeowners living there. The number and type of common elements vary and can include but are not limited to entrance signs and gates, clubhouse facilities, tennis and swimming facilities, street lights, sidewalks, service utilities, insurance and many other communal assets. These common elements are owned by the community and are thus maintained by all who have common ownership interest.

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.

Most associations are registered as nonprofit corporations.
When you purchase a new property, the closing documents reference the fact that the property is in an association and that the buyer will abide by the rules and regulations in that community. Membership to the association is both automatic and mandatory and conveys with the deed and ends with the sale of the property. The buyer is ultimately responsible for discovering if the property that they purchase is inside an association and following the rules that govern that community.
The governing documents outline a standard that helps preserve the look, feel, and sense of community of the property. Community amenities help to enhance the quality of life and promote social activities within the neighborhood. Most neighbors maintain that the biggest benefit of their association is preserving the value and integrity of their individual investment.
The Board of Directors is a group of homeowners just like yourself that volunteer to participate in the day to day activities of the association. In the same way that our elected officials uphold our Constitution, the BOD upholds and enforces the community’s governing documents as their fiduciary, legal and ethical obligation.

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.

The day-to-day operations of most associations are so detailed and involved that they go far beyond the scope and time and attention that most volunteers can provide for the community and its members. Most Boards recognize the need to hire a professional firm that can provide experience and expertise. The management company can also serve as an objective third party for neighbor to neighbor disputes.
Our goal is to provide partnership for your Board of Directors and the homeowners in your community. Ultimately, we strive to protect and enhance the value of your investment. Often, our position and authority can be misunderstood. Associations are governed by their own set of documents called covenants and bylaws. The elected Board of Directors enforces these documents and they work to represent the needs of the whole community. To better understand Your HOAs’ role in your community, take a look at the things we handle and the things we don’t handle:

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

When you purchase a property in an association, you become part of a common interest development. All homeowners are required to share in the common expenses of the maintaining and operating your community’s common areas, equipment, and shared amenities.

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.

Each community is managed by a set of governing documents referred to as articles of incorporation, bylaws, covenants, conditions and restrictions (CC&Rs), rules and regulations. Since each community has specific governing documents, the budget and finances are regulated in these documents. Assessments are due annually, semi-annually, quarterly, or monthly depending on community’s documents. Dues are always due on the first day of the billing cycle.

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.

Many homeowners still receive coupon books once a year at the expense of the association. Every year more and more of our communities elect to go “paperless” to save their association the added expense of these coupon books. Additionally, homeowners have the opportunity to go “paperless” themselves by signing up for eStatements in lieu of receiving a coupon book.
Your HOA offers easy and convenient payment options:

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).

View Payment Section on the Website >

Simply submit a request to Your HOA through your portal and in the detail of the request provide the two or more accounts you would like to be linked.

Please note, the owner name, mailing address and email address must match on the accounts.

When the Board of Directors determines the need for a capital expense that is above and beyond the normal budget for the community, a special assessment may be required. Often, a vote is needed from the community to approve the added expense. Special assessments can cover additional expenses such as an unexpected property loss, deferred maintenance concerns, and additional community enhancements.
Each association’s documents can require a different set of rules. Often if there is non-payment on an owner’s account, the covenants expect a late payment fee and interest to be assessed on the account. If the account continues to go unpaid, a preparation of account fee will also be applied to the owner’s account.

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.

The goal of every association is to preserve the value of the community’s assets and the property values for each homeowner. When assessments go unpaid, homeowners are negatively impacted because the financial responsibility of the community are equally shared among all neighbors. Delinquent accounts can mean unpaid bills and put the community in jeopardy. Rules and regulations in the community can dictate strong fines for compliance and delinquent accounts.
Once a scheduled closing date for sell of your property is determined, your closing attorney (or the homeowner) submits closing documentation to Your HOA.

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:

Closing Statement:

- 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

The Transfer Fee is an industry standard charge that covers the costs associated with transferring ownership from seller to buyer within an HOA. Rush fees may also apply, based on the timing of your attorney’s request.
If documentation has not been received indicating a successful closing, Your HOA's closing coordinator will reach out to the closing attorney to check on the status. For unsuccessful closings, the closing hold on your account will be removed. Any payments that were received and held during the closing hold will be applied to your account as normal. To avoid fees, please be sure to catch up on any payments missed during this time.

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.