Today, we’re talking backstabbing drama, and, in one instance a straight-up coup. You didn’t even know you were anxiously awaiting this article on the concerns surrounding HOAs, but it’s finally here.
Last week, I reviewed the benefits of an HOA. Today, I’ll discuss some of the concerns surrounding HOAs and attempt to illustrate the crazy scenarios and every day drama that can surround HOAs.
Rules
The “rules” sword cuts both ways. When I was in HR, my motto was “nobody chaperones the chaperone.” (If you can name the movie, drop a comment below!). If you aren’t really inclined to be bound by collective rules, an HOA development may not be the best choice for you.
Story time: My friend, S, is dealing with this issue right now. S got involved in her HOA a few years ago because she’s a social person. She wanted to help put on events for the families in her neighborhood and make it a great place to live. Fast forward to today, S has somehow become the HOA president of her neighborhood (she doesn’t seem quite sure how it happened), and she’s knee deep in refereeing neighborhood drama. One of the neighbors decided to build an unpermitted (as in not city-approved) structure on her property. Said structure is also not allowed under the HOA rules. S says it’s getting ugly, and all she wanted to do was host fun events.
Some people don’t even like to follow laws, let alone HOA rules. If you’re considering purchasing a home in a neighborhood with an HOA, read the HOA documents and bylaws carefully so you are fully aware of what you are signing up for if you move forward.
Dues
You’re going to pony up some dues. Someone has to foot the bill for all those benefits, and I’m sorry to say that person is you. Most associations require monthly dues that you will need to factor into the cost of your home ownership.
Just like your property taxes, those dues will increase over time. You need to understand that those costs can increase, and in some instances, there may be special assessments if the development’s financial situation warrants it. At a minimum you will want to review financial information, including the Reserve Fund, the Master Deed, the Bylaws and insurance coverage information.
Your HOA board might be insane.
This segment is where it’s about to get juicy. I’m talking Gossip Girl juicy. xoxo.
Close your eyes (for pretend) and let’s do a little exercise. Picture someone you know that likes to wield power in unhealthy ways, who always thinks she’s right and loves to enforce the petty rules? This imaginary person is very likely to be your Board President. (You had an actual person you know in mind, didn’t you? I won’t tell.)
As far as I can tell, there are only two kinds of board presidents: The one I described above and people like my friend, S, who somehow got roped into the position because she’s smart, competent and people gravitate towards her.
It’s a crap shoot which one you’ll get, so hope for the best, prepare for the worst.
Story Time: An HOA Coup
Now, I recently had a peripheral seat to an actual HOA coup. I’m playing a little fast and loose with the details here and smudging a bit to protect the innocent, but here’s the basic story. It was cuh-razy.
The longstanding president of the HOA decided to step down because, from what I deduced, he was sick of dealing with the frequent neighborhood bull$h*t. A new president stepped into the role, and the neighborhood politics quickly got crazy. There were changed maintenance timelines, cronies installed into board seats and power trips to end all power trips.
This situation finally came to a head when enough members grew concerned about the dues increases to start pushing back. They started asking questions about the purpose of the increased dues. Questions the Board President couldn’t (wouldn’t?) give a straight answer on. In the end a group of members hired their own attorney to apply pressure to the board to adhere to the rules and behave in a manner suited to their positions.
The whole situation culminated at the annual meeting where the President and half the board quit on the spot and walked out of the meeting. Apparently, the attorney was really good. CAN YOU IMAGINE? I would have loved to have been a fly on that wall.
Meanwhile, a new board was quickly voted in, with members who, you know, follow the HOA rules and Michigan law. Things are still tense in the neighborhood, though, and I have zero doubt, that the former board president is secretly plotting some sort of revenge.
For more crazy HOA stories, you can visit one of my favorite websites for an article on infuriating HOA encounters. There are some real doozies in that thread.
Wrap Up
That concludes my two-part series on the pros and cons of homeowner associations. I hope you found them interesting and helpful.
As always, I’m here to help with all your home ownership questions, concerns, goals and dreams. Reach out if I can help in any way!