Establishing a Homeowners Association, or HOA for short, can be a good way to effectively manage a community of properties. Homeowners Associations handle issues such as:
- Offering services not provided by a local government
- Hiring security or managing safety and security issues
- Property maintenance for common areas
- A lack of property maintenance by homeowners
- Local nuisances
In many ways, these associations are helpful to homeowners, because they have the potential to provide a safer community with set standards that all new tenants or homeowners have to meet.
When should you set up a Homeowners Association?
Usually, an HOA is set up when a new community is being built. If that is when you set yours up, then you can make a condition that any interested tenants or buyers have to agree to the HOA rules and join to be a part of the community.
What should you do when you want to set up a Homeowners Association?
If you’re ready to set up an HOA, it’s important to first educate yourself on the laws and procedures in your state. Always reach out to an attorney for guidance. You will need to touch on topics such as:
- Resident disputes and how to handle them
- Board resolutions
- The Americans with Disabilities Act and staying in compliance
- Collection of assessments
- Liens and enforcement
- Creating a budget and fee schedule
- Getting insurance
- Accounting and financial reporting obligations
- Creating a website
Setting up an HOA could be good for your community of condominiums or manufactured homes, but it has to be set up in accordance with California’s laws. Our website has more on topics you should consider with respect to, the legal rights and responsibilities you may have if you run an HOA and what to expect as you create one.