HOA’s (Homeowner Associations) are a necessary evil for attached homes – row homes and condos. They make sure the homeowners follow the rules that they agreed to when they bought the house. They also keep up the standards for yards and exteriors which includes replacing the roof and siding when needed.
Part of the issue is, when there is a problem even with just some of the homes, all have to pitch in. And if you don’t agree with the need for the repairs you are still stuck. And if you don’t pay? HOA’s will put a lien on your home faster than anyone else. In one case, there was an assessment and then they raised the HOA from $100 a month to $150.
A client was looking at a home for $225,000 and another with an HOA that listed for $199,000 and they were the same payment. A good rule of thumb, for about every $70 in monthly HOA fees, you could buy $10,000 more of a house. Except for where the HOA’s are minimally invasive, just making sure the yards are kept up and no cars on blocks, I think HOA’s suck.
In the Portland Metro area there are several HOA’s that are suing the builder to fix problems and some believe it is just a matter of time before all eventually sue someone. This alone can cause an assessment to pay for the lawyers and, if they don’t get enough from the builder, it is left for the owners to pay the difference.
