Homes with no HOA
By Mike Gerrard

Homes with no Home Owners’ Association (HOA) can be hard to find in Phoenix area communities and here are the pros and cons of living in a home with an HOA.

If you’re looking for a home with no Home Owners’ Association (HOA) in the Phoenix area, they can be hard to find in the Valley’s many retirement communities. There are pros and cons of HOA living, many of which people don’t realise until they’ve actually moved in, so what are these advantages and disadvantages if you’re buying a home with or without an HOA?

What is an HOA?
First of all, for those not familiar with HOAs, what is a Home Owners’ Association? Many retirement communities have them. If the community has an HOA then every home in that community belongs to it. This is why it’s important to check in advance as you have no choice in the matter. If you don’t like the HOA rules or fees after you move in, it’s too late. You have to abide by them.

The HOA is typically run by a board or committee, which is elected by the owners from within the community. Once elected for a certain term, the board is responsible for running the HOA, enforcing the rules, and resolving any disputes that may arise. They have other functions too, like organizing social events or maintaining common areas, perhaps through sub-committees.

The only exception to this is in a brand new development, which may not yet have enough home owners to form an HOA. In this case the developers will appoint a board to run the HOA until there are enough home owners to be able to form their own board. In some instances, HOAs actually are independent bodies, appointed by the developer.

Each home owner will pay a subscription to the HOA to cover the costs of maintaining the community. These can vary enormously, usually depending on the size and amenities of the community and how involved the HOA is, so it’s important to check the dues in advance and be happy with them.

Homes with No HOA
If a home has no HOA it means you’re pretty much free to do what you like… but so is your neighbor, and you may not like what they do. Some people who have lived in homes with an HOA say they would never do so again, because of the restrictions placed on them. However, many people prefer the security of having an HOA, as a common duty of HOAs is to help maintain property values. Having a home with no HOA may reduce the number of potential buyers when the time comes to sell, though if you have no intention of moving for a long time this may not concern you.

CC&Rs
Each HOA will have its own CC&Rs (Covenants, Conditions, and Restrictions). If buying a home with an HOA it is vital that you obtain a copy of these and read them thoroughly. They can govern things like paint colors, pets, yards, fences, parking, and many other aspects of community life. If you have an RV, for example, you may take it for granted that you can park it in the driveway, but the CCRs may not allow it.

You should be aware that CC&Rs are legally binding documents, and once you’ve bought a home with an HOA you are then bound by the regulations. Many give the HOA a right to levy fines against non-complying homeowners, and if the fines aren’t paid the HOA can put a lien on your home, making it impossible to sell until the fines are cleared. Of course, if you’re happy with the CC&Rs this is never an issue, but don’t buy a home with CC&Rs and think you can ignore some of them.

Levels of Service
Some HOAs offer different levels of service, with different rates for dues. This allows you to choose whether to pay for, say, the ability to attend social events, but not pay for those services you don’t intend to use.

The Pros and Cons of HOAs
Paying Your Dues
Some HOAs ask for annual dues, some for quarterly or monthly dues, so be sure you’re happy with what you’ll be paying. If the HOA is active in a positive way, the dues can be good value for money. Some organize social events that are either free or cost just a few dollars, with food and drink provided by generous donors, or paid for through fund-raising activities.

Common Area Maintenance
Your HOA dues will usually cover the cost of maintaining common areas, weed-killing, and trimming palm trees. Weeds can be a problem after the summer monsoons in Phoenix, when they emerge in all their glory. Untrimmed palm trees can also be a fire hazard if struck by lightning during the monsoon storms, so you’ll be thankful for an HOA which keeps things under control.

Before buying, take a drive around the community and see for yourself if it looks well-maintained and cared for, indicating an active HOA. If you see anyone, stop and ask: ‘Say, what’s the HOA here like?’

Naturally you are responsible for your own property, though some HOAs do also take responsibility for some exterior maintenance of the homes within their community. Some HOAs also take care of trash collection and – though this is not a problem in Phoenix – snow clearance. If your HOA takes care of the trash collection, you’ll probably pay less because they can negotiate group rates. The HOA will also take care of any problems that might arise.

Paint Colors
One thing that causes a great deal of debate in communities is the subject of house colors. CC&Rs will often dictate what color you can paint your house, and the trim, from a restricted range of colors. In the Phoenix area, these are often white and pale colors, which is also a practical choice as they repel the heat better than darker colors. Some HOAs permit a range of pastel colors too, for more of a Southwestern look, but whatever the CC&Rs say is your only choice. They may even stipulate the brand of paint to be used. The HOA might even be able to have your house repainted, at your expense, for persistent non-compliance.

Other HOA Restrictions
Some of the other possible restrictions may well make you prefer to look for homes with no HOA. If you have pets, some HOAs restrict the number and even the size of the pets you can have. ‘Small pets only’ would rule out many people’s dogs. Some HOAs restrict the number of people per household, which is not a problem for most home owners but could be if circumstances change and you want or need to have elderly relatives come live with you. Some don’t permit laundry to be dried outdoors, which is crazy in Arizona when a load of laundry can dry in an hour on a sunny day. Others have rules on noise levels, which can be a good thing if you’ve ever suffered from noisy neighbors and been powerless to do anything.

The Board
Although CC&Rs are legally binding, a lot can also depend on how the HOA board is made up, and this is something that can change over time. An over-officious board can make everyone’s life miserable. Want to park your car in the driveway for a few days while you have some garage work done? If the CC&Rs don’t allow that, then some boards might ignore it while others would enforce it and make you find somewhere else to park your car, no matter how inconvenient.

A good HOA can bring together people with skills from different walks of life who work together enthusiastically to make life in the community better for everyone. On the other hand, HOAs can also attract people who either have nothing better to do or who are used to handing out orders, rather than listening to the needs of the residents. It can be like politics in miniature. And like politics, the answer’s the same – if you don’t like the way things are going, run for office yourself!