Purpose of an HOA
Purpose of a Home Owners Association (HOA)
Not everyone has heard of an HOA or is familiar with what an HOA does. Above all else, the main goal of an HOA is to preserve property values. Nobody wants the value of one of their largest investments to stagnate or decline because neighbors don't take care of their property or the community property is not properly maintained. Other important goals of an HOA is to make the neighborhood an enjoyable, attractive and safe place to live, all of which contributes to the main goal of the HOA, that is to preserve property values.
Benefits of an HOA
An HOA accomplishes these goals in a number of ways. This list isn't all-encompassing:
Benefits of an HOA
An HOA accomplishes these goals in a number of ways. This list isn't all-encompassing:
- Maintains a common standard for maintenance and improvements.
- Provides common amenities through shared ownership such as swimming pools, clubhouses, sports facilities, etc. that are often impractical or impossible to own individually.
- Provides reduced costs for certain household amenities by purchasing or contracting in bulk. Such as telecom services (telephone, internet, cable TV) and landscaping.
- Enforcement of acceptable use such as not allowing people to run retail businesses from their homes or renting out rooms.
- Requiring homeowners to maintain their home sites by keeping the home in good repair, freshly painted, elimination of trash, properly caring for the landscape, etc. We've all seen how decrepit homes can reduce the beauty of a street or an entire neighborhood. Who wants to buy in a neighborhood having dumpy homes?
- Maintains the common appearance as defined by the governing documents.
- Enforces rules regarding types of vehicles permitted and proper parking.
- Enforces other criteria spelled out in our governing documents.
Make-up of board and committees
All HOAs have a Board of Directors with the usual officers, including a President, Vice-President, Secretary, Treasurer, and one or more additional directors. Board members are elected by the membership (homeowners) to serve their community and run the association. In the Lakes of Sherbrooke and Sandpiper Isle, as with most HOAs, these are volunteer positions offering no compensation.
The Board may also form committees to carry out specific tasks. Committees are staffed by volunteer homeowners and are absolutely critical to the successful running of an Association. Such committees may include Architectural, Compliance, Landscaping, Social, and others depending on the needs of a particular community.
Some associations, such as Sandpiper Isle, are self-managed. This means the Board does all the management work needed to run the Association including accounting, property maintenance, collecting dues, obtaining bids and paying vendors. the Board works with the various committees pertaining to compliance issues and architectural changes. It's like running a business -- quite a lot of work but for no pay.
Governing Documents
In Florida, HOAs are regulated by state law. Beyond that, the HOA has Governing Documents that must be followed. There are multiple documents but the two main ones of interest are the following:
- Declaration of Restrictions
- By-Laws
Each of these documents enumerates the various policies, procedures, duties, rules, etc. for the association and it's residents. Prospective buyers, through their realtors, must receive and review them prior to purchase. Homeowners receive a copy of these and other documents at the time they purchase the home. Buyers sign a declaration that states they have read, understand, and agree to abide by all of the Associations' various governing documents.
An HOA actually has surprisingly little leeway in interpreting the documents and enforcing the provisions. It cannot simply invent new policies and rules nor strike existing ones on a whim. The documents specify how changes are to be made when changes become necessary.
Homeowner membership
All homeowners are automatically members of the HOA and are required to make a monthly dues payment to the HOA. This money supports the Association in all the ways mentioned above and more.
Our HOAs in The Lakes of Sherbrooke as well as Sandpiper Isle are not-for-profit. That is, every dollar goes to the welfare of the neighborhood. No elected or committee position offers compensation.
An HOA actually has surprisingly little leeway in interpreting the documents and enforcing the provisions. It cannot simply invent new policies and rules nor strike existing ones on a whim. The documents specify how changes are to be made when changes become necessary.
Homeowner membership
All homeowners are automatically members of the HOA and are required to make a monthly dues payment to the HOA. This money supports the Association in all the ways mentioned above and more.
Our HOAs in The Lakes of Sherbrooke as well as Sandpiper Isle are not-for-profit. That is, every dollar goes to the welfare of the neighborhood. No elected or committee position offers compensation.