HOA - no yard art? (Austin: to live in, car, restrictions)

[Melissa78703]

I will never, ever live in personally-owned property that is governed by an HOA. I had the single worst experience with one ... basically, my former HOA decided that we homeowners were going to dish out thousands of dollars for superficial improvements. In the end, me and my ex had paid the HOA half the cost of our home in special assessments.

When we divorced, I let him have the property. Didn't want to argue over it, and to be honest, who's going to buy it, once they find out about the way the HOA does business?

Beware HOAS. Do your homework. Look into the HOA's history. Don't end up with a second mortgage!

[chimera]

Originally Posted by Melissa78703

I will never, ever live in personally-owned property that is governed by an HOA. I had the single worst experience with one ... basically, my former HOA decided that we homeowners were going to dish out thousands of dollars for superficial improvements. In the end, me and my ex had paid the HOA half the cost of our home in special assessments.

When we divorced, I let him have the property. Didn't want to argue over it, and to be honest, who's going to buy it, once they find out about the way the HOA does business?

Beware HOAS. Do your homework. Look into the HOA's history. Don't end up with a second mortgage!

ah..that's really too bad you had such a negative experience! But unfortunately it does happen.

Which is why I stay actively involved with our HOA....to help make sure it's run like a business, not a social entity. IMHO, anytime one is using someone else's money, it's business, NOT social!

That's not to say that there aren't disagreements among members of our particular community: ie, a resident who wanted to build a larger community center triggered discussions ad nauseum. But in the end, special assessments for such a project require a community vote, so everyone had their say. Like with our national political system, if one doesn't bother to vote, then...well....what else can I say? (That particular project was turned down, btw... )

It is as you rightly indicated: a badly managed HOA can cause real problems with resale values. But on the other side of that coin: a well run HOA helps raise values: Our community was originally criticized by realtors and builders for being too controlling. True...we don't want a zillion of your for sale signs lined up at the entry gates! And if you're a builder, you're going to be required to post a bond to protect our community against your subs damaging common property!

But now, after a few years, this same community is being described by those same realtors and builders as being a "prime location" and having a rep for being very well managed.

Gosh, folks are actually wanting to buy in here because of the HOA, not in spite of it!

I think the key is "communications": a Board HAS to stay in contact with members of the community and provide as many ways as possible for residents to voice their opinions/wants/desires. We have a community web site, a forum, polls, a newsletter, and monthly open meetings. In addition, regular social activities are provided by resident volunteers and every effort is made to create a community of folks that watch out for each other....not just be people that share space.

Ok. I'll get off my soap box now!
Just want to let you know though, that I've also had experiences with a badly managed community: ie, everyone had to park their car in the driveway so as not to block the sidewalk. Unfortunately, prior HOA's had not enforced build-back lines and some houses were so close to the road that a large car/SUV could never NOT block the sidewalk because there was simply not enough room!
So picture this: blocks of houses with cars/SUV's parked PARALLEL to the street in double driveways! Crazy!
A prime example of someone creating a rule and not thinking through all the consequences!

[atlanta hope]

Originally Posted by HappyTexan

I'm in a subdivision with an HOA similar to trainwreck20..no amenities to take care of.
Our HOA was formed more to keep the subdivision as single family homes and not have a commericial entity buy a lot and use it in a commercial way. Our HOA payments go towards an annual BBQ for the owners

That's my kind of HOA.

[DiMost]

HappyTexan said: "No, HOA's are all different. Read over all the rules before you decide to buy.
My HOA is for an acreage subdivision..we have rules like 1 large animal per 1.5 acre (cows, horses, etc)..definitely geared towards hobby farming/ranching rather then estate type subdivisions. Thankfully mine doesn't have a single word about how tall the grass can get before you have to mow

I got a copy of them and read them over before I bought my place. I was looking for some land to let the wildflowers grow (which means no mowing Jan-May), raise some chickens and not have any HOA commando's telling me I was violating the rules."

Tell me where you live, again? That's what I am looking for. I am not comfortable having to get approval for paint colors or what plants are allowed in my yard. I like wildflowers :-)

[IC_deLight]

Originally Posted by chimera

Not all HOA's are created equal...just as not all homeowners want the same thing for their neighborhood...

Since I made a major investment in my home and know from experience how lack of enforcement of deed restrictions can decimate property values, I welcome a strong HOA....and sought out a community that has one.

Adherence to HOA rules are part of a purchase agreement...buyers have to sign off on them when closing on the property. But obviously a buyer needs to read them closely so nothing will come as a surprise later!

I just wish some realtors were more conscientious about informing buyers about HOA requirements. It's not fair to the home buyer nor the community when a home is sold to someone who doesn't know or objects to the rules.
Why have a Homeowners Associations?

Do not believe the industry myths and ask lots of questions. The cited URL is propaganda by an attorney that makes a living foreclosing on homeowners in HOAs. His organization wants HOAs to have incredible ppower Many of these HOAs are easily infiltrated by management companies who implement a "priority of payment" document in order to ensure that they can extract all sorts of money from you under threat of foreclosure on your home.
The first step is implementing private fining in neighborhoods that never had them. The management company will convince Board members that they have the power to do this unilaterally. The Board is inherently immune from fines.
The next step is implementing the "priority of payment" document to recharacterize all your assessment payments so that they are applied to fines, management company fees, attorney fees, etc. before being applied to your assessment. By virtue of mandatory membership, you have no choice but to pay whatever those management company fees, fines, and attorney fees are if you want to keep your house.
Before anyone touts the Texas Property Owners Protection Act, let's note that the senator responsible for that act is the same senator that owns a very large number of management companies. The priority of payment scam is particularly prevalent in HOAs managed by his management companies.
These HOAs do not improve property values for the owners. Modern HOAs are being used to bilk homeowners left and right.
Here's just one example: if you are considering a new subdivision, ask if there is a central propane system. If there is, ask if you will be permitted to have your own buried propane tank (it's not an aesthetic issue if its buried). Almost certainly you will not be permitted because the developer has a financial arrangement with the propane provider. Guess what? Propane is economically unregulated in Texas which means that the propane vendor can charge you whatever it wants to for gas. The restrictive covenants will have provisions to indirectly ensure that one vendor has an exclusive monopoly. This is happening for gas, water, telephone, broadcast services, and probably electricity. Rarely are homeowners put on notice of this.
As to "reading the rules", the Board has nothing to really prevent it from "reading the rules as it desires" and is not obligated to your interpretation or even a reasonable interpretation. The HOA is not a "joint tenancy" of homeowners but rather a separate entity unaccountable to the homeowners. The homeowners are merely funders. In many newer subdivisions, the declarant will control the HOA for many decades and can change those restrictions any way it sees fit. Hint: they are always changed to benefit whoever controls the Board.
The laws have been written by the developers, management company owners, and the foreclosure attorneys to advance the interests of the developers, management company owners, and the foreclosure attorneys - not the homeowners.
As far as notice is concerned, that is also a myth. There is no obligation for the seller, Realtor, developer, or title company to even provide the purchaser with an accurate copy of the restrictions. For a document that is so important, you would be hardpressed to find a copy of it on the website of many of the newer subdivisions with HOAs that are anxious to bring buyers in to buy those lots.
The author of the above-cited webpage has foreclosed on thousands of homes in the Houston area.

[IC_deLight]

Originally Posted by ITChick

To b.frank and love roses, are there certain areas/neighborhoods where HOA's are more predominant?

I live in a nice neighborhood now without an HOA and I'm fine with the yard art and the Christmas Inflatables. I don't own any but I don't care if the neighbors do.

Is there any way I can know by driving around a neighborhood in Austin or its suburbs (other than those with a gated community) that it will be "governed" by an HOA or not?

Great question. One of the worst things about MLS is that it is not easily designed to search for homes that are NOT in an HOA. Many people would like to search for homes that affirmatively have NO HOA. Often Realtors simply leave the HOA fields blank which does not mean that there is no HOA but rather that they have no information about the HOA. Of course, some Realtors undoubtedly don't won't to advertise the fact that the purchaser will be subjected to an HOA because it's not a selling point.

By the way, the senator that owns a lot of these management companies modified a bill that prohibited owners from imposing perpetual "transfer fees" on the owner's property to an enabling act that allowed HOAs to do just that to property that is not owned by the HOA. We're not talking about administrative fees here. We're talking about HOAs taking a percentage of the sales price each time a home is sold. It's been happening in the Houston area for several years now. There is no limit on the fee or percentage that the HOA can "assess" you when you sell your home.

[atlanta hope]

scary stuff!

[oldtoiletsmkgdflrpots]

Are we in Texas yet?

[IC_deLight]

There is a continued (false) theme from the real estate professional that 'reading the rules' provides any protection for you as a homeowner. The current state of the law give the HOA Board (and therefore its agents) great power to rationalize just about any restriction under the "business judgment rule". Moreover, the "rules" can change after you purchase your property and without your consent or even the opportunity to vote.

Look at West Cave Estates - their restrictive covenants did not provide for private fining. Without any input or vote from the residents, the Board adopts a "resolution" allowing the Board (actually its agents) to fine the homeowners if the Board (i.e., agent) decides that the homeowner is "in violation" of a restrictive covenant. Of course this was highly recommended by the management company (Alliance) and the HOA attorney which profit tremendously from this racket.

These agents profit from the fining process and you can rest assured the residents are soon subjected to a torrent of accusations of breaching the restrictive covenants. The fining process is a money machine for the HOA attorneys and management company. No court, no due process, no equal protection. Your accusers profit from the accusation. The currency of trade for the management company is money. The currency of trade for Board members is ego.

You may think you have a "good" HOA. Well when it goes "bad" you'll quickly find out that there is very little recourse. The real estate industry's self-serving answer is usually "move".

It really doesn't matter what the restrictive covenants say when the management company and HOA attorney can unilaterally fine you and then threaten you with the loss of your home. The law currently provides that only the party asserting an action to enforce a restrictive covenant shall get its attorney fees. Who do you think lobbied for such a law? That law ensures that in virtually all cases, the HOA is the only party that can sue and collect attorney fees.

So the homeowner gets sued by an HOA attorney who usually provokes the dispute in the first place. The HOA has no liability for the targeted resident's attorney fees. The victim, however, is potentially on the hook for the HOA attorney's fees. Moreover, the HOA attorney is quite willing to run up quite a bill in the litigation because his payment is secured by a lien on the victim's home. It's quite a racket.

You'll also note this private fining and re-characterization of your assessments highly correlates with certain management companies. Many states have made this practice unlawful. Unfortunately we have a state senator that has made quite a livelihood out of shaking down homeowners by threatening them with the loss of their homes over "debts" his management company claims are owed.

You can learn more about the HOA racket with a little research. See, e.g., theHOAprimer

The management companies and HOA attorneys are consistently pushing for ever greater restrictions via "resolutions", "guidelines", etc. irrespective of any restrictive covenant provisions. If you purchase a home in one of these subdivisions, you are virtually guaranteed to be subjected to election irregularities, self-dealing on vendor relationships between HOA agents and vendors, "drive-bys" by management company employees who prosper by accusing you of being in "violation', and accusation of being "in violation".

You'll also find that you won't be permitted to sell your home without paying a "transfer fee". You might not be permitted to sell your home without first applying for a "certificate of compliance". These will be imposed via "management agreements" between the Board and management company which you won't even be allowed to see. An HOA and its unregulated Board become a license for the management company and HOA attorney to take all the equity in your home.

[oldtoiletsmkgdflrpots]

Thank you IC-deLight! I had no clue. I'm not familiar with HOA's, or MUD's. However, I'm going to learn. Thank you again. At first when I was looking at the homes in those nice, bright, shiny new subdivisions I was all excited because the homes are absolutely beautiful inside. I was beside myself thinking I would have a dishwasher AND a laundry room. However, upon further inspection of the virtual tours I noticed that whenever I looked out one of the windows I could see my neighbor sitting on their toilet. Sorry, I'm crass. I really didn't see them sitting on their toilet but I can't stand the postage size lots. If someone in charge of one of those subdivisions were to come and look at our yard right now I'm afraid we'd be put away for life. WoW, HOA's...who knew. I think for today I'm going to count my blessings and not pack one darn box. /e steps over the dog poo in the yard