HOA Hurdles to be Aware of When Looking at New Properties In Boise Idaho
A Home Owner Association (HOA) can have a huge impact on your life when you buy a home in a Boise Idaho PUD (Planned Unit Development) or Condominium Project.
According to Wikipedia:
A homeowners’ association (abbrev. HOA) is an organization created by a real estate developer for the purpose of developing, managing and selling a development of homes.
It allows the developer to exit financial and legal responsibility of the community, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots.
It allows the municipality to increase its tax base, but reduce the amount of services it would ordinarily have to provide to non-homeowner association developments.
Most homeowner associations are incorporated, and are subject to state statutes that govern non-profit corporations and homeowner associations.
State oversight of homeowner associations is minimal, and mainly takes the form of laws, which are inconsistent from state to state.
The Pros and Cons of HOA’s:
A Home Owner Association may have the power to determine the color of your home, the number of pets you have and the type of grass you have to plant.
They also may have the power to levy assessments, dues and fines.
Or, they may be as simple as collecting a few dollars per year to make sure the grass is cut in the common areas.
HOAs are set up by CC&Rs (Covenants, Conditions & Restrictions) and become part of your deed.
The CC&Rs dictate how the HOA operates and what rules the owners, tenants and guests must obey.
You should take the time to review the CC&R for any prospective purchase to make sure that the home you are buying will be right for your lifestyle.
For instance, if you operate an Amway business from your home, it is possible the CC&Rs prohibit this type of activity. Or, if you have two dogs and three cats, the CC&Rs may limit you to one pet.
The CC&Rs are only a portion of the HOA.
Bylaws are another component of HOA’s that reflect the intention of the association.
Each HOA either has a managing Board of Directors, or a third-party property management company.
One issue to be sure you check on is potential assessments.
For instance, recently a Condo Association had a foundation problem and was assessing the members over $10,000 per unit.
Another PUD had a pool that required routine maintenance and certification.
Subdivisions are commonly set up as PUDs with an additional HOA.
Until the subdivision is complete, the builder is generally in charge of the HOA.
When complete, the management of the PUD is typically turned over to the homeowners at a special membership meeting.
Top 10 Boise Idaho First Time Home Buyer Mortgage Links/Articles/Questions
1. 3 Great Idaho First-Time Home Buyer Loans
2. Idaho Housing and Finance Association Zero Down 100% Financing for First-Time Home Buyers
3. Idaho USDA Rural Development (RD) Zero Down 100% Financing First Time Home Buyer Loan
4. Idaho VA 100% Home Financing Loans
5. Idaho First-Time Home Buyer Frequently Asked Questions
6. Jumbo Mortgage Financing for Boise, Idaho Properties
7. Conventional Home Loans For Boise Idaho Borrowers
8. VA Mortgage Loans in Boise Idaho
9. Boise Idaho Reverse Mortgage Senior Loans
10. FHA Mortgage Loans in Boise Idaho
Related Articles – Home Buying Process:
- Home Buying Process
- First-Time Home Buyer Credit Checklist
- Assembling Your Home Buying Team – Knowing The Players
- Seven Things Your Agent Should Know About Your Mortgage Approval
- Important Factors To Consider When Getting Financing On A Foreclosure, Short Sale or New Construction
- Where Does My Earnest Money Go?
- What You Need To Know About The Home Inspection Process