Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A townhome complex I have been looking at is lowering its monthly HOA fee by $25 a month in 2011. Out of the kindness of their hearts or something more sinister? Any ideas? It's an attractive proposition if I buy there.
HOA's never go down unless there is good reason to. Likely could be property values plunging or other reasons to get more people to buy in the neighborhood.
HOA's never go down unless there is good reason to. Likely could be property values plunging or other reasons to get more people to buy in the neighborhood.
Gee whiz, of all the stretching I see on this forum, this one is tops!
An HOA should keep certain amount in reserves but cannot exceed a certain amount. I would guess the new dues will put less toward reserves (because it is fully funded) or the expected costs next year are less than this year.
Also, there could have been a special assessment to pay for something in particular that has expired.
Carole, ask to see the HOA end of year statement, the reserve study, and estimate for next years expenses. The answer will be there.
I think it might have been the special assessment. I think after Hurricane Ike, the roofs all had to be replaced and everyone had to pay $800+ for their homes. The only reason I know about the reduction is because there is a website for the HOA.
Is there any legal maximum increase an HOA can make or does it vary from HOA to HOA or state to state? I have never owned a home with an HOA and it worries me that my monthly outgoings (including property taxes) could rise so much that I won't be able to retire in 4 or 5 years.
I think it might have been the special assessment. I think after Hurricane Ike, the roofs all had to be replaced and everyone had to pay $800+ for their homes. The only reason I know about the reduction is because there is a website for the HOA.
Is there any legal maximum increase an HOA can make or does it vary from HOA to HOA or state to state? I have never owned a home with an HOA and it worries me that my monthly outgoings (including property taxes) could rise so much that I won't be able to retire in 4 or 5 years.
Read the HOA bylaws. They will probably indicate a maximum the board can increase dues without a vote of the owners or how assessments are approved.
It does vary from HOA to HOA, and regulation of HOA management varies from state to state.
It seems reasonable to point out that the HOA is an association and function of the Owners, with the Owners giving direction through their elected HOA Board, and Owners having voice and votes in the operation of association.
Your posts seem to come from the perspective of Owners vs. HOA as an outside entity.
Yes, there can be contention and friction, but commonly the Owners can call the shots via votes and politicking.
I think it might have been the special assessment. I think after Hurricane Ike, the roofs all had to be replaced and everyone had to pay $800+ for their homes. The only reason I know about the reduction is because there is a website for the HOA.
Is there any legal maximum increase an HOA can make or does it vary from HOA to HOA or state to state? I have never owned a home with an HOA and it worries me that my monthly outgoings (including property taxes) could rise so much that I won't be able to retire in 4 or 5 years.
I'm a board member of an HOA and I would highly suggest you read the declarations, rules and regs, etc.... there may not be a "max" increase they can impose on their fees, but it will give you an idea of what to expect in the community.. Also look through the last few years financials to see how the community is doing overall.
We have discussed lowering our fees, because as an association we are doing very well financially and will be conducting a study to see if we "need" to lower fees or keep them the same.
it is important to see the financials as this will give you an idea of how financially set the community is and that will give you an idea of what to expect as far as fees raising.
I also am a board member of an HOA, generally there is a HOA financial meeting once a year where fees and the general financial condition, upcoming expenses, reserves, etc, are discussed. Considering it is your money and the board and officers are elected by YOU, it certainly is in your best interest to attend at least this one meeting.
Lots of great advice. Thank you. After reading some negative posts about HOAs on the Houston forum, I had begun to see them as the enemy. Not so from your answers. So thank you for helping me to feel better about buying a condo or town home. I would attend meetings. I think it is important.
Lots of great advice. Thank you. After reading some negative posts about HOAs on the Houston forum, I had begun to see them as the enemy. Not so from your answers. So thank you for helping me to feel better about buying a condo or town home. I would attend meetings. I think it is important.
I have 2 properties in HOAs and they both are great. Due to accounting disclosure, I know where very penny goes. All the board members are home owners who are volunteering their time and I am very thankful for that.
I think the biggest confusion are the reserves. The intent is to spread the large ticket items (new roof, painting, etc) over the expected lifespan of the item so there are no surprise expenses that come up.
There are a lot of expenses keeping a structure going. A condo with a good HOA can make it pretty much worry free.
But do check out the HOA before you buy. Some are in real trouble. Particularly now, a lot of homeowners have stopped paying their dues. Some have not amortized their expenses right and do not have enough in reserves. Just check them out.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Gee whiz, of all the stretching I see on this forum, this one is tops! 
