It’s about that time.
You’ve moved into a subdivision, let’s assume it’s the best move you’ve ever made. The builder has been good to work with and the HOA has been taken care of.
But wait, what happens when that builder turns over the HOA? Are your HOA dues going to skyrocket? Who’s going to be on the board?
Relax… These transfers don’t have to be stressful.
What happens when the builder turns over an HOA.
First off, this is a topic of high concern for a lot of people.
At Leisure Villas, we specialize in building communities for seniors and active adults 55 and older. Because of this, we’ve had a lot of experience with HOA’s. We’ve navigated many of the pitfalls and learned how to make a smooth transition.
For many people, especially if you’ve come from a neighborhood that didn’t have an HOA, or sometimes when you have come from a poorly run HOA, you may feel a little out of your element.
The two biggest concerns that people have when it comes to new HOA’s are:
1. Will my HOA Fee go up?
A valid concern. No doubt you’ve heard of this happening before. Maybe you’re even concerned that the builder is subsidizing the HOA too heavily and when they leave, there will be a budget shortage.
2. Will I be forced to participate in the HOA?
Yikes! And you thought public speaking was bad. Now you’ll be responsible for making and enforcing rules on your neighbors? That doesn’t sound like a walk in the park.
Wouldn’t it be nice if it were easy? It can be.
Let’s first examine these fears.
Concerning HOA fees, I don’t know how other states are run, but here in Utah, recent laws have helped improve the financial balance sheets of HOA’s. Gone are the days where your HOA could forget about building up a reserve account.
Now HOA’s have to plan for the future. So your HOA dues that you pay now, are generally reflective of what your liabilities will really be in the future. The builder also has a responsibility in making sure that the HOA’s are funded and accurate.
Sometimes, especially in the beginning, a builder might subsidize the HOA accounts. Usually though, this is done before there are many people living there. It is done to help beautify the community and provide the amenities that the small minority of homeowners could not afford until the subdivision is filled more completely.
Next, and I know you’re concerned about this, participation.
Not everyone feels cut out to be in leadership positions. But here’s a little secret, you don’t have to be a leader to be involved.
Often, there is more to an HOA than you might first think.
Being part of an HOA board can be very rewarding.
We’ll explore this in more detail in our next post, but not all HOA’s are created equal. Leisure Villas believes that adults who move out of their single family house and into a planned community, are moving there to enjoy a better lifestyle.
We like to encourage that better standard of living. In the world we live in, it’s far too easy to be pessimistic about the future. We’d rather live on the bright side.
By participating in your HOA, you find a rewarding association with your neighbors that you might not have thought possible. An HOA does not have to be a scary thing. A builder who can hold your hand through the transition is even better.