Two-thirds "annoyed" with HOA, survey says

Two-thirds of people who live in the jurisdiction of a homeowners association are "annoyed" by them, or worse, and 19% have been in what they call a "war" with their HOA. This is according to a survey of more than 3,000 customers by Service Magic.

On the upside, 24% responded positively about HOAs. However, while a primary purpose of HOAs is to force neighbors to keep up the appearance of their homes, 54% of respondents said they’d rather live with a “sloppy neighbor” than deal with an HOA. Here are the results to this question:

What is your opinion of homeowners associations?

They’re great 8%
They’re okay 16%
Minor annoyance 21%
Major headache 48%
No opinion 7%

Plus, 78% of those responding to the poll said they might consider NOT buying a home because it would be under the jurisdiction of an HOA. So why do HOAs seem to be flourishing? What's your take on this?

See results to all questions, and a short video on HOAs by expert David Lupberger.

Comments

[Lou]

HOAs exist because of local governments' endorsement. Developers convince the local government that the houses will bring in needed revenue (taxes) while no maintenance of the roads will be needed because the HOAs will pay for them.

There are also many people who make their living off HOA related businesses. Hence, the benefits (most not true) of HOAs continue to permeate the real estate business.

[appraiser1]

Lou is correct. HOAs exist because that is often the only way a city/jurisdiction will allow higher-density development (or any development, in some areas.)

That being said, I have owned and lived in two HOA developments, and been on the boards at both. Believe me, it would be better for everyone involved if those who cannot handle living with the concept of oversight just stayed out. Part of the deal is that the higher-density conditions and the lack of a city government taking care of streets, etc, means that someone (your neighbor, or maybe you! ) is in charge.

Let's face it: you are either paying less than what you would for a freestanding, no-HOA home or you are getting a newer home. There is a compromise here, no free lunch.

One last point: there are plenty of HOAs run by abusive board members, or controlled by money-skimming management companies. Such places deserve derision, but they are not the norm. (Flipside: There are also always troublemakers who cause HOAs to waste huge amounts of time and money because they refuse to adhere to the CC&Rs they agreed to in escrow!)

[investorguy]

Ours is trying to foreclose on a guy who bought an REO eyesore and is fixing it up. His insurance company made him put up a 6-foot fence because the property has a pool. The fence is too tall on one side, the HOA little old lady nazis say, and they're levying fines so they can foreclose.

[Love the OC]

I agree with appraiser1 - The benefits are great living in HOA's. The rules are there keep our neighborshoods looking good and thereby keeping our home values up - one very important issue some forget!

[richflocker]

Homeowners cannot agree to "contracts" that are not available at closing - the majority of these alleged contracts exist at a distant location and are referred to in a PUD rider at escrow. Thus, the homeowners have never even seen the terms, and if they did they would never agree to such things. No homeowners knowingly agreed to place their homesteads up as collateral to pay the dues to these regimes forever. Forever is a long time, and any business contract must have a term limit to be valid, the constitution has provisions in the bill of rights against such perpetuities. Thus, the contract should be renewable and cancel-able at some point, but the HOA industry has deliberately undermined the constitution and placed these fraudulent contracts on all new housing - they never expire by design and greed. This is patently a fraud and a lie, perpetuated by the money grubbers who make their living off the backs of homeowners living in Mandatory Associations Foreclosing in America (Acronym, please: MAFiA). Organized crime and fraud is why HOAs have become so "popular". Put it to a vote and let the present day owners decide in a democratic fashion - require at least 51% of them to sign a petition to renew and extend the HOA authority...inflict a little democracy to the equation. Only then will we find out the truth, and only then will we see a decline in the terrorism wrought on American homeowners by this fascist form of government.

[jim conlon]

appraiser1 has it wrong. There is no choice anymore. The HOA situation is growing like cancer. Concensus at my tract: This HOA sucks. The volunteers on the board want to be on the board but do not want to meet their obligations as volunteers. When I found out this place was HOA I had already spent time and effort. The real problem is the lazy and vicious people who are on the board. The normal people here have no interest in controlling people or thier money and don't want to be volunteers. Hold the volunteers accountable and things would improve.

[Joe]

Jim: You should initiate a vote to dissolve the HOA. That or get the CC&R changed to remove the stuff nobody likes or isn't enforcing and turn slim your HOA officially such that it's little more than a property ownership trust to pay for the roads and any community property your neighborhood owns. These sorts of things can usually be done once the developer has sold the remainder of the property (which sounds like the case) and the super majority of the property owners agree.

[Michael Reardon]

HOAs exist because developers and municipalities get something for nothing. Homeowners are left holding the bag.
Worse, the service providers have formed a national lobbying organization, the Community Associations Institute that fights tooth and nail to maintain the status quo.
As far as democracy in HOAs, how can you even say that without bursting out laughing?
HOAs never have 'opposition parties. Imagine if the Republicans could just retread all our 'candidates'!
HOAs never have a 'free press'. Never!
HOAs do not have a separation of powers scheme, "the very definition of tyranny" wrote James Madison!
It goes on and on and on.
Pulte Homes did a market survey and found that professionals under 50 want NOTHING TO DO WITH HOAS.
The values that are supposed to be protected by HOAs are instead being destroyed by the stupid mindless and totally predictable grasping for power that board members invariably present.

[Deborah HOA Board Member]

I serve as a volunteer member-secretary of our HOA. I'm also a designated real estate appraiser of the Appraisal Institute. I think there's some misinformation here. Not all HOA's exist because the developer wants the HOA to care for the streets. Most often, streets where I live in SC are built and deeded to a municipality our county. The only community property we have is our entrance feature. The Board has a fiduciary duty to the homeowners. Their #1 responsibility is the safety of the residents, #2 is the preservation of property value. That often means enforcing no parking in the street rules and regs, requiring lawn mowing when it gets to be unsightly, as in jungle height, and requiring that any additions, decks, etc. are built in conformity with the neighborhood. When managed properly, HOA's can help create a sense of community and connectedness. Their biggest enemy is the apathy of the homeowners and the 'busybody' attitude as in 'let someone else do the work'. When done right, everyone wins, and feelings are managed. If there truly are negative, destructie and power hungry people on the board, the homeowners should get together and demand a homeowners meeting to elect Board members who have their best interest at heart. It's each resident's responsibility to do so. Or, dissolve the HOA entirely - there are provisions in your Covenants to do so. Do you have a copy? If not, ge them, read them, and empower yourself. Watch the movie John Doe - a caring Board can foster communication and cooperation for the good of everyone especially in trying economic times where we can really watch out for each other. Good luck, everyone.

[Sam Judie]

I liken HOA Board Members to small children in a room with a large bowl of candy....once one child takes a piece of candy....the other kids quickly line up to take candy as well! It is just "Human Nature"? Check out our little website where we are trying to "Have A Say In Our HOA!" http://www.RiverLandingHenderson.com or just use river1234.com in your browser "address box"!.........Sam