Guilty by Association
Photo by: Photographer Frederik Trovatten
Years ago my mother bought a house in a neighborhood in the far West End of Richmond. My mother grew up in the jungle of Santiago, Panama. She knows how to stretch a dollar to the fullest. When she moved in, she would hang her laundry out back because a) it’s what she’s used to and b) it saved money. Neighbors did not take kindly to her resourcefulness nor did they like it if I parked in front of her house, nor did they want her doing anything to tarnish their impeccable image. She hated living there.
I recently had a client dealing with her 2 HOAs in addition to her Neighborhood Association. Yep, two different entities, 3 different fees, and double the disclosure package. So fun. I decided this would be the subject of this month’s piece—educating others on the differences. Here we go…
A Homeowners Association (HOA) and a neighborhood association are both community organizations, but they have distinct differences in their structure, purpose, and functions:
HOA (Homeowners Association): Primarily focused on managing and maintaining common areas and amenities within a residential community. HOAs often enforce community rules and architectural standards, collect dues, and address issues related to shared facilities. For example, there might be rules on what type of structures you can have on your property or if you can have a business out of your home.
Neighborhood Association: Generally has a broader focus on community engagement, social activities, and advocacy. While some neighborhood associations may also address common issues like beautification and safety, their scope is often more varied and may include organizing events, fostering a sense of community, and representing residents' interests to local authorities. For example, a neighborhood association can vote on a pet friendly environment or encourage others to help with buying playground equipment.
Membership and Dues:
HOA: Typically, residents within a specific housing development or community are mandatory members of the HOA, and they are required to pay regular dues to fund the association's activities. In Richmond, HOA fees run on average between $200-$300 a month. Depending on how lux the community will determine price usually. The more amenities, the higher the cost.
Neighborhood Association: Membership in a neighborhood association is often voluntary, and residents may choose to participate by paying dues or getting involved in community activities. Some neighborhood associations are good for maintaining the beautification of a community or helping to prevent criminal activity, although they can be a bit like Mrs. Kravitz where certain neighbors will cause headache to others.
Governance:
HOA: Governed by a set of covenants, conditions, and restrictions (CC&R) that outline rules and regulations for the community. The HOA is usually managed by a board of elected homeowners or the property management company for condos/townhomes.
Neighborhood Association: Governance structure varies, but neighborhood associations are often more informal and may not have the same level of regulatory authority as an HOA. Leadership may consist of volunteers or elected representatives.
Enforcement and Regulations:
HOA: Has the authority to enforce community rules and regulations through mechanisms like fines, architectural review processes, and, in some cases, legal action.
Neighborhood Association: Typically has a more limited regulatory role, focusing more on community engagement and collaboration rather than strict enforcement.
Scope of Activities:
HOA: Primarily concerned with managing property values, architectural standards, and common facilities within a specific development.
Neighborhood Association: Engages in a wider range of activities, including organizing social events, community outreach, and advocating for broader neighborhood interests.
If you choose to live in a community that has an HOA, make sure you understand all the bylaws and restrictions that come with your new home. If you are a homeowner that wants the freedom to do what thy will upon your property, you may not want to get into a home that has an HOA attached to it. It can affect things like the color of your home, where you park, noise restrictions, and so forth. Also note that when you sell your home or condo, you have to pay for the resale package which can be quite pricey.
My mother no longer lives in a restrictive community, but she does have a neighbor who thought it’d be a good idea to park a large RV and build a tiny house right up to her property line. Can’t win them all!