for expenses incurred in the administration, management, maintenance, and operation of the development. Failure to pay assessments may result in a lien on the property and legal action to collect the past due amount. Some states even mandate a hearing with the homeowner before issuing penalties. And there are horror stories. Last year, 20/20 aired the account of an 82-year-old widow who was evicted from her home, although it was fully paid for, due to the alleged nonpayment of $800 in assessment dues. “The minute your neighbor has the right to do these things, you’re in trouble. What you’re dealing with is a fourth level of government,” Bartholomew says.
The good news is that there are homeowner associations that are friendly and productive. When they do work, they protect the neighborhood from deterioration such as cars on cinder blocks, unit exteriors in states of ill repair, or yards that are not maintained. As with everything, investigate before you sign on.
HOW TO SURVIVE IN AN HOA
Ask questions before you buy: Find out how residents feel about their association. Evaluate the condition of the subdivision. Look around. Is individuality allowed or does the community look like it was cookie-cutter stamped?
Read all of the documents: They will spell out the rules and regulations. Greenwalt says when the wording is unclear, it’s important to get an attorney’s opinion. Is there room to modify the declarations (the recorded restrictions on the deeds) if necessary? Remember, these documents can be legally updated if they seem hostile and inhumane. CAI encourages associations to review their governing documents to ensure they are reasonable and reflect the will of the community. CCRs are not set in concrete, but some will stipulate that modifications cannot be made for as long as 20 years.
Know your rights: Associations have been accused of abusing their powers and intimidating homeowners. Don’t allow yourself to be bullied. Order the American Bar Association’s The Complete and Easy Guide to All the Law Every Home Owner Should Know (Random House; $13.95) by calling 800-733-3000. If you question any penalties, claims of infringement, or association requests, Bartholomew advises that you ask the association to cite its authority.
Get involved in the governance of your association: Attend association meetings. Ask to serve on committees. Run for the board.
Know your state’s statutes: There are differences in specific state laws and statutes. “Every state has an act that provides the framework from which community associations function,” says Molly Foley-Healy, a CAI attorney. Unfortunately, although the Homeowners Association Bill of Rights and the Colorado Common Interest Ownership Act were created to balance the interests of homeowners and their associations, they have been criticized by some as not having any teeth in their bite.
Accept responsibility for your actions: Make peace with the fact that you must request approval to make certain modifications or improvements to your home or lot. If you receive a letter citing an infraction, Greenwalt suggests correcting the violation and moving on. If you think the citation is frivolous or unjust,