Hate the Idea of an HOA? 6 Benefits That May Change Your Mind

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About half of the homes my husband and I have purchased through the years have been part of a homeowners association (HOA). In that time, I've learned to truly dislike some aspects of HOAs and appreciate others.

Let's begin with a few examples that make it easy to understand why so many home buyers avoid HOA-run communities at all costs.

• Fran Paxson of San Ramon, California, is no stranger to living in a drought-prone area. Paxson had a portion of her lawn removed and replaced with mint plants. Native to the area, the new plants would have required far less water to spread and thrive throughout her yard. Further, the homeowner had drip irrigation installed to save money and provide sustainable landscaping. Her HOA told her she was being fined $50 a month until she put the lawn back in 25% of her landscaped front yard. The disagreement took place even after California passed a law prohibiting HOAs from fining homeowners whose lawns dry out in drought conditions.
• Wenonah Blevins, an 83-year-old Houston woman, owed $4,000 in HOA fees, most of which was to be used to pay the HOA's attorney. After foreclosing on her home, Blevins's HOA sold the property for just $5,000, 1/30th of its market value at the time.
• The Orlando Sentinel told the story of Vietnam veteran Robert Brady, a 70-year-old member of his neighborhood HOA. Although Brady had been a resident in his complex for 45 years, it wasn't until he adopted a support dog that the trouble began. In addition to his dog, Brady had a Veterans Administration document stating that the dog helps Brady control mental health issues. Still, his HOA said the dog, which he'd had for four years at that point, had to go due to a weight restriction of 35 pounds. Brady's dog weighed 40 pounds.

Sometimes, an HOA comes in handy

Granted, as long as HOA boards exist, there will be those who get caught up in their own perceived power. But there are also HOAs that run smoothly, helping homeowners gain the greatest enjoyment of their properties while also protecting home values. CBS News recently reported on one California couple who would benefit greatly from an HOA.

The story featured a couple who took out a mortgage on their dream home in Sun Valley. Unfortunately, their next-door neighbor is a hoarder who keeps rusted cars, broken-down boats, medical waste, moldy clothes, refrigerators, propane tanks, gasoline bottles, and other highly flammable materials on his property. To date, the couple has requested assistance from nearly a dozen city, state, and other government agencies. None has helped solve their problem.

Even after the EPA counted 114 vehicles on the property and found that the soil had high levels of arsenic, lead, cobalt, and other dangerous substances, government agencies told the couple that their hands are tied.

What's worse, there is only one road out of the fire-prone area. Should a fire break out on the property, there would be no way for neighbors to make their way out.

While it may take an HOA months or even years to get the property cleaned up, it might just be enough of a thorn in the side to get the job done.

Love them or hate them...

Properly (and fairly) run, an HOA does offer advantages. Here are six of them.

1. Higher home value: Homes in HOAs are worth 5% to 6% more than similar homes outside of HOAs.
2. Architectural controls: If the thought of a mid-century modern home next door to a country farmhouse makes you cringe, you'll appreciate the fact that HOAs work to ensure design consistency.
3. Greater community engagement: Whether it's a holiday-themed festival or an outdoor movie night, HOAs can pull neighbors together who might not have otherwise met. A friend recently told me that her HOA brings in food trucks every two weeks, giving the entire neighborhood the opportunity to gather and have fun.
4. Maintained common areas: Everything from manicured common areas to playgrounds are kept up by HOAs.
5. Amenities: Some HOAs feature pools, tennis courts, barbecue pits, parks, and walking trails for its residents. Before applying for a mortgage on your dream home, check to see if it has the amenities you desire.
6. Compliance: Let's say your neighbor's home becomes an eyesore. It's up to your HOA to ensure your neighbors comply with all neighborhood regulations regarding issues like paint colors, fence heights, number of dogs, and RVs in the driveway.

Like most things in life, HOAs are not all bad or all good. The great thing about an HOA is that you can always run for a seat on the board if you don't like the way things are being run. Make the changes you want to see from the inside.

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