Not happy with your HOA? Get involved.

I myself live in a community - just outside Charlotte - with an HOA. The other day our neighborhood held its annual "neighborhood garage sale." It was a beautiful sunny spring day - the perfect Carolina weather!

As I sat with my neighbor (a good friend) I heard her say, over and over again, what a shame it was that the neighborhood association did not advertise the garage sale properly. She complained to herself, to her husband, to me, to the one or two people who stopped to look at the old children's toys... But fact is, we had hardly any traffic at all and it made for a very long day!

After a while I had to say something. Homeowner's associations work when the neighborhood residents get involved. And since my friend had not been on the garage sale committee, and since she did not make any effort that I could tell to help organize the event, participate, help, or lend her opinion beforehand, I truly felt that she did not have a reasonable complaint.

Many of us in Charlotte live in HOA communities and many are run well. The property management company takes care of things like the park and the pool and common area. The architectural committee approves fences and patios. But too often too much falls on too few.

If you are not happy with how your HOA is run, or how they handle the annual Easter Egg Hunt, or the color of the new playground equipment--then it is ultimately your responsibility to get involved. The folks that have taken the time and effort to step up and make the decisions for the community are not compensated. They do what they can, and sometimes that means there is no one to place an ad in the newspaper or update the neighborhood website.

Every HOA has large jobs and small jobs and if you are able--please consider doing your part. If you can't, that is fine too... but it leaves little room for you to complain when things don't go the way you would like!

Property Manager
Kuester Property Management

HOA Rules and Regulations

Rules are meant to protect people and property, and HOA rules are the same way. While some people may be offended by the notion that they have to request permission to build a swing set, or put up a fence in their own back yard, there is always a good reason--or at least a good intention when an HOA set the rule.

If you do not want to live in a community that has restrictions on the size of shed you can put up, or how long your grass can get in between mowings, than perhaps living in an HOA community is not for you. But if you see the value in a neighborhood which abides by the same guidelines in order to protect the property values and the residents, then an HOA-neighborhood may be a great fit

If you are new to living in a homeowner's association regulated area and do not read the CCRs, it may be a bit of a shock to you the first time you are given a warning letter about a minor violation such as leaving your garbage can outside for several days after garbage day. But rest assured the committee member who noted the violation and the property management company that sent the letter to you are not "out to get you." No one likes to be the bearer of bad news--and if the issue is minor and a first-time problem, they will likely wave any fee if you take care of the issue quickly.

It is an adjustment if you have never had to follow the policies of an HOA, but in the end they rules are meant for you. After all, if there weren't a rule about keeping a rusted-out car in one's front yard, there would be little recourse for you if your next-door neighbor were to choose a '79 Buick as a lawn decoration!

Also, you should remember, if you feel that a policy of the HOA, or neighborhood covenant is unfair or ill conceived, you have the ability to have it put up for a vote if you are an active committee member. The HOA is there for you -- so participate and enjoy the benefits of having a community interested in protecting you, your family, and your home.

New Law Affects HOAs

The NC General Assembly passed House Bill 806, October 1, 2009 requires increased Home Owner Association responsibility. What this means to you:

This new law requires that the homeowners associations make reasonable and diligent effort to locate and notify a lot owner prior to filing a claim of lien for assessments, as well as written notice including a statement of the assessment amount due sent by first-class mail to the owner. These must be sent to the owner's address of record with the Association, (and if different), the physical address of the property, the address for the owner shown on the county tax records, the address for the owner shown on the county real property records for the lot or unit, and, if the owner is a corporation, the address of the registered agent listed with the Secretary of State.

The new law also states that the lien paperwork from the attorney's office must be sent by certified mail, and the attorney's office must also provide proof that it made a reasonable effort to contact the homeowner, and an affidavit affirming this fact.

The first page of the lien must also include this verbiage:
THIS DOCUMENT CONSTITUTES A LIEN AGAINST YOUR PROPERTY, AND IF THE LIEN IS NOT PAID, THE HOMEOWNERS ASSOCIATION MAY PROCEED WITH FORECLOSURE AGAINST YOUR PROPERTY IN LIKE MANNER AS A MORTGAGE UNDER NORTH CAROLINA LAW.

This new HOA law means that governing the collections and filing of liens by homeowner associations will become more complicated and labor intensive from now on. HOAs will be required to take additional steps before and during the collection process in order to file claims of lien properly and to collect on them through the foreclosure process.

As a result, homeowner associations should review and update their collection policies and procedures, including routine updating of owner information, to ensure that they can navigate effectively through the new statutory framework.

If you are on the board of an HOA in NC, you should work with your property management company to ensure that these new proceedures are being followed.

What does an HOA cost?

Dear Property Manager:

I was recently elected to our HOA board and we are considering changing property management companies. Can you tell us what the average cost per resident is for HOAs? And besides the basic services, what can an property management company do? Can we include these in our request for proposal?

Kim T. HOA President

Dear Kim

I cannot give you an "average" cost per resident since the cost of HOA management service is directly related to the scope of the work the management company does...and this can vary. You and your board need to develop a scope of work and request proposals from at least three qualified management companies in the Charlotte area. Make sure that your prospects specialize in HOA management, and will offer references. But make sure to provide them each with the same list of "wants and needs." Some companies, (such as Kuester) now offer online applications for the residents to track their HOA dues status and other neighborhood information. This is a great option and should be something your candidates offer.

As for the "what" and HOA can offer, here is a link to the HOA services that Kuester provides. This should give you a good idea of what you can expect and what you can request when you fill out your RFP.

Best of luck and please contact me if you have any additional questions about HOAs!

Property Manager
www.kuester.com