What Does HOA Mean?
Many communities have HOAs in the United States. HOA stands for Home Owners Association and they are located in many diverse parts of the United States. Recently, there have been several disputes surrounding them that could have easily been avoided if they were better organized, transparent, and more fiscally responsible. If you are considering moving to a community that has a homeowners association or are looking for a better way to manage your existing association, consider the information below:
How Do I Know If My Community Has An HOA?
Usually, when you are deciding to purchase a home, you will receive a full packet of information about the potential property that you are considering purchasing. Then, you will find out if the community you are looking to move to has an HOA. You must look over all the required obligations you will have to your future association if you decide to purchase the property. By having a clear understanding at the beginning, it will be possible to avoid common mistakes and pitfalls that residents make when they purchase a property in a community with specific regulations that they were not aware of.
What Do HOAs Do?
Typically, HOAs control the public areas of your community to be sure that they are maintained periodically and in the event of an emergency. Also, they cover the roads or pathways in your community that you enjoy as a resident within the community. They also regulate the exterior of each property so that residents may have to stay in a certain color scheme or have landscaping and remodeling restrictions. Furthermore, they will collect dues to support the services and benefits they are providing to their communities. Lastly, they have a Board of Directors that will meet periodically to make important decisions for the well-being of the community.
Am I Required To Pay HOA Dues?
If you are moving to a community that has an established HOA, then you will be required to pay the annual dues. Many residents have had issues with this recently because they don’t want to pay for services that they don’t use; however, if residents are living in a community with a homeowners association, they have to sign their contract when they move in. By signing this contract, residents are agreeing to all the fees and obligations required of them to reside within the community where their property is located.
Are HOAs Required To Follow Any Rules?
Due to the many issues of HOAs fraudulently charging residents, they have been analyzed more closely by states and certain states have created strict requirements for them to follow to protect residents from overpaying. They are also required to have established rules and bylaws so that residents are clear about what their obligations are to their residents and the common areas of the community.
These bylaws are required to be distributed to all residents within the community. HOAs are required to file taxes like any other organization and have the potential to be audited as well. They are also required to exercise caution with member dues to organize their finances in the most beneficial way possible.
How Clark Simson Miller Can Streamline Your HOA Processes And Systems
Many HOAs greatly struggle with handling the multitude of requests that their community receives regularly. HOAs, particularly if they have hundreds of homes, can get disorganized and not give their residents the quality of management service that they deserve. They can also struggle with their HOA Bookkeeping practices that, if managed properly, could allow their reserve fund to have more capital in the event of an emergency.
Clark Simson Miller has helped HOAs located in many parts of the United States streamline the management processes of their HOAs so that their finances are well managed, and their operational processes are improved. To learn more about how Clark Simson Miller can make a substantial difference in your community’s finances and efficiency, give us a call at (865) 315-7505 or contact us online.