Checking HOA’s Finances

[LuckyInOC]

I am not necessarily against HOA’s. My wife and I are considering buying a 2Bd/2Ba in RB as a second home, possibly for retirement. We would like something with low maintenance and a pool for our kids. This is difficult with part-time residency. I just think it is buyer beware. Newer PUDs (1990-2002) may not have these problems. Very new PUDs may have issues as indicated as initially stated.

However, I believe increase over 10% per year are required to be approved by the owners. High increases in dues after special assessments doesn’t make sense. The special assessment will cover the current shortfall. The additional dues required to cover the same roof should be spread over 30+ years.

Example:
Roof for each unit: $10,000.
No. of year life: 30 years

$10,000 / 30 years / 12 months = $27.78 per month.

This is without accrual of interest. There has to be other major issues for the dues to go from $150 to $350 per month.
The board may have just hired a very expensive Property Management Company.

Lucky In OC

[jpinpb]

The theory of HOAs are like the road to hell paved w/good intentions. Few are managed properly – especially financially. But having rented in complexes w/HOAs, I find the homeowners are problematic, enforcing rules with dictatorship mentality. I don’t find it a friendly community but more like a prison police state.

I have seen many lawsuits involving HOAs suing over the most petty things that I am amazed don’t get settled but actually go to trial. One in particular was over a palm tree.

I understand one who is maybe going to retire would want a maintenance-free, simple and easy living. But my experience is quite the opposite.

I bought a condo for my mom in a 55 over community and all they do is raise the HOAs and don’t maintain the premises as well as they should, cutting corners often.

I am disappointed and am discouraged from ever going that route. More and more information emerges to convince me not to buy a condo.

[jpinpb]

The theory of HOAs are like the road to hell paved w/good intentions. Few are managed properly – especially financially. But having rented in complexes w/HOAs, I find the homeowners are problematic, enforcing rules with dictatorship mentality. I don’t find it a friendly community but more like a prison police state.

I have seen many lawsuits involving HOAs suing over the most petty things that I am amazed don’t get settled but actually go to trial. One in particular was over a palm tree.

I understand one who is maybe going to retire would want a maintenance-free, simple and easy living. But my experience is quite the opposite.

I bought a condo for my mom in a 55 over community and all they do is raise the HOAs and don’t maintain the premises as well as they should, cutting corners often.

I am disappointed and am discouraged from ever going that route. More and more information emerges to convince me not to buy a condo.

[jpinpb]

The theory of HOAs are like the road to hell paved w/good intentions. Few are managed properly – especially financially. But having rented in complexes w/HOAs, I find the homeowners are problematic, enforcing rules with dictatorship mentality. I don’t find it a friendly community but more like a prison police state.

I have seen many lawsuits involving HOAs suing over the most petty things that I am amazed don’t get settled but actually go to trial. One in particular was over a palm tree.

I understand one who is maybe going to retire would want a maintenance-free, simple and easy living. But my experience is quite the opposite.

I bought a condo for my mom in a 55 over community and all they do is raise the HOAs and don’t maintain the premises as well as they should, cutting corners often.

I am disappointed and am discouraged from ever going that route. More and more information emerges to convince me not to buy a condo.

[jpinpb]

The theory of HOAs are like the road to hell paved w/good intentions. Few are managed properly – especially financially. But having rented in complexes w/HOAs, I find the homeowners are problematic, enforcing rules with dictatorship mentality. I don’t find it a friendly community but more like a prison police state.

I have seen many lawsuits involving HOAs suing over the most petty things that I am amazed don’t get settled but actually go to trial. One in particular was over a palm tree.

I understand one who is maybe going to retire would want a maintenance-free, simple and easy living. But my experience is quite the opposite.

I bought a condo for my mom in a 55 over community and all they do is raise the HOAs and don’t maintain the premises as well as they should, cutting corners often.

I am disappointed and am discouraged from ever going that route. More and more information emerges to convince me not to buy a condo.

[jpinpb]

The theory of HOAs are like the road to hell paved w/good intentions. Few are managed properly – especially financially. But having rented in complexes w/HOAs, I find the homeowners are problematic, enforcing rules with dictatorship mentality. I don’t find it a friendly community but more like a prison police state.

I have seen many lawsuits involving HOAs suing over the most petty things that I am amazed don’t get settled but actually go to trial. One in particular was over a palm tree.

I understand one who is maybe going to retire would want a maintenance-free, simple and easy living. But my experience is quite the opposite.

I bought a condo for my mom in a 55 over community and all they do is raise the HOAs and don’t maintain the premises as well as they should, cutting corners often.

I am disappointed and am discouraged from ever going that route. More and more information emerges to convince me not to buy a condo.

[LuckyInOC]

jp,

Unfortunately, HOA’s are not only for ‘Condos’. Condos, Townhouses, SFR, & Timeshares (all PUDs or CIDs) all can fall under HOA’s. In fact, it is rather difficult to find new homes without HOA’s. Likewise for Mello-Roos.

But you won’t get the bright pink house with purple trim next door…

Everyone who owns or plans to own a PUD/CID should be read the following at least twice:

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments

Correction:

Regular Assessments over 20% requires quorum (50%) of owners.

Special Assessments over 5% of the current fiscal year budget requires quorum of owners.

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments
Chapter 5 Operations
Article 4 Assessments – 1366 (b)

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1366-1367.5

Lucky In OC

[LuckyInOC]

jp,

Unfortunately, HOA’s are not only for ‘Condos’. Condos, Townhouses, SFR, & Timeshares (all PUDs or CIDs) all can fall under HOA’s. In fact, it is rather difficult to find new homes without HOA’s. Likewise for Mello-Roos.

But you won’t get the bright pink house with purple trim next door…

Everyone who owns or plans to own a PUD/CID should be read the following at least twice:

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments

Correction:

Regular Assessments over 20% requires quorum (50%) of owners.

Special Assessments over 5% of the current fiscal year budget requires quorum of owners.

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments
Chapter 5 Operations
Article 4 Assessments – 1366 (b)

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1366-1367.5

Lucky In OC

[LuckyInOC]

jp,

Unfortunately, HOA’s are not only for ‘Condos’. Condos, Townhouses, SFR, & Timeshares (all PUDs or CIDs) all can fall under HOA’s. In fact, it is rather difficult to find new homes without HOA’s. Likewise for Mello-Roos.

But you won’t get the bright pink house with purple trim next door…

Everyone who owns or plans to own a PUD/CID should be read the following at least twice:

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments

Correction:

Regular Assessments over 20% requires quorum (50%) of owners.

Special Assessments over 5% of the current fiscal year budget requires quorum of owners.

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments
Chapter 5 Operations
Article 4 Assessments – 1366 (b)

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1366-1367.5

Lucky In OC

[LuckyInOC]

jp,

Unfortunately, HOA’s are not only for ‘Condos’. Condos, Townhouses, SFR, & Timeshares (all PUDs or CIDs) all can fall under HOA’s. In fact, it is rather difficult to find new homes without HOA’s. Likewise for Mello-Roos.

But you won’t get the bright pink house with purple trim next door…

Everyone who owns or plans to own a PUD/CID should be read the following at least twice:

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments

Correction:

Regular Assessments over 20% requires quorum (50%) of owners.

Special Assessments over 5% of the current fiscal year budget requires quorum of owners.

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments
Chapter 5 Operations
Article 4 Assessments – 1366 (b)

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1366-1367.5

Lucky In OC

[LuckyInOC]

jp,

Unfortunately, HOA’s are not only for ‘Condos’. Condos, Townhouses, SFR, & Timeshares (all PUDs or CIDs) all can fall under HOA’s. In fact, it is rather difficult to find new homes without HOA’s. Likewise for Mello-Roos.

But you won’t get the bright pink house with purple trim next door…

Everyone who owns or plans to own a PUD/CID should be read the following at least twice:

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments

Correction:

Regular Assessments over 20% requires quorum (50%) of owners.

Special Assessments over 5% of the current fiscal year budget requires quorum of owners.

California Civil Code
Division 2 Property
Part 4 Acquisition of Property
Title 6 Common Interest Developments
Chapter 5 Operations
Article 4 Assessments – 1366 (b)

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1366-1367.5

Lucky In OC

[Doofrat]

Thank you Lucky, FLU and cv2 for the specifics on checking the state of the HOA.

[Doofrat]

Thank you Lucky, FLU and cv2 for the specifics on checking the state of the HOA.

[Doofrat]

Thank you Lucky, FLU and cv2 for the specifics on checking the state of the HOA.

[Doofrat]

Thank you Lucky, FLU and cv2 for the specifics on checking the state of the HOA.

[Author]

Posts