Reader Questions - Why HOAs?

community managers h o a homefront reader questions Oct 12, 2015

Kelly Richardson,

We have lived in three HOAs. What we have found lately is that no one wants anything to do with the HOA even though they signed up to be in it when they bought in the housing districts that require them. It is almost impossible to get knowledgeable candidates to be on the boards or to get anyone to take the time to vote for them.

Most disturbing is the changes in the state requirements for the HOA. HOAs are being treated like mini cities. HOAs do not have the funding or the experienced members to do that level of detail even with a manager, and many HOAs are without a manager. 

All new housing districts are based on HOAs and the fees they charge for common area maintenance is ever increasing.

I see only one reason for the HOA and that is to try to keep the properties in good shape. Otherwise they are a big pain for all owners.

How does one operate an HOA without board members or a manager?

Can the HOA be disbanded? Why can’t developers build housing without an HOA?

J.R., Lompoc

Dear J.R.,

Common interest developments (aka “HOAs”) are necessary because they allow for the collaborative sharing of land to maximize the benefits for the sharing owners. If collaboration is weak, the benefit of the shared ownership is also weak. Truly, not everyone is able or willing to share in the burden and the benefits of common interest community living.

California HOA laws are extensive and very detailed, and growing more so each year. Small communities generally are unaware and therefore do not comply with the laws, because they cannot afford legal guidance and typically lack the help of professional management. Furthermore, the law is “one size fits all,” which makes little sense for small associations. For example, I recently prepared a ballot package for an association of four members. Why? Because they cannot have a voice vote and must use sealed secret ballots, the same as the 500 home associations.

In response to your questions, associations need a governing body, the board, to make decisions because only the smallest of associations can consult all the members on decisions. Even the smallest associations should have a manager helping with their financial reports and budgets, because most volunteers do not know what they are required to do.

Disbanding an HOA is rarely advisable. The association was formed to facilitate the shared ownership and control of the property. Without the covenants, bylaws and rules, how will the community pay for repairs and maintenance, or deal with the neighbor who refuses to cooperate and be a good neighbor? The answer is not to give up and abandon the common interest concept, but to start executing it better. There often are specific reasons why people will not volunteer (see HOA Homefront columns #9 and 163), so take a step back and see if a new approach is needed.

Developers (and we homeowners) need the common interest development configuration because it allows creation of innovative new communities where land is scarce, and enables architectural quality controls benefitting all owners.

The HOA is here to stay – so let’s learn to do it the right way, and reap the benefits of shared ownership living.

Kelly


Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.