First, let us answer why an HOA would exist in the first place. It begins with the developer, who submits to create a residential development in which the owners of real property within that community would contribute to the costs of maintenance and improvements, real estate taxes and insurance premiums of other real property within the community (usually referred to as “common elements”). On July 1, 1992, State Legislature put into effect “The Colorado Common Interest Ownership Act,” better known as CCIOA (pronounced Ki – o – a). Perhaps some of you have heard this acronym floating around at meetings, perhaps not. At any rate, a very broad and general definition of CCIOA is a law that was put into effect to help govern communities that were developed after July 1, 1992. Those communities that were developed prior to this date are not subject to ALL of the provisions in CCIOA law; however, they are still subject to limited aspects of CCIOA. So the bottom line—a community that has common property is a common interest community and therefore subject to CCIOA. A Homeowners Association (HOA) is created under the provisions of CCIOA with the intent to govern, protect, and maintain the value of the development.
Some people like the freedom of not having to abide by a set of rules governed by a neighborhood board — and there is nothing wrong with that. But for others, an HOA offers security, value, organization, and support that they do want and need.
Ultimately, the purpose of an HOA is to protect the value of homes and neighborhoods within a development. This is done by maintaining common areas and holding the residents accountable for following the rules of the Association. The HOA has the right to enforce maintenance and design standards like the color houses are painted and where vehicles can be parked. The point of these rules is to keep people from doing things like parking cars on blocks in their front yards, painting their front doors in polka-dots, keeping a pen of pigs in the side yard, or even constructing a moat! Some people find this restricting, and others feel secure that a set of policies are always followed the same way by everyone!
The Top 10 Benefits of Living in a Well-Managed HOA
- Well-maintained common areas – HOAs typically do an outstanding job of maintaining common areas. (Think manicured and over-seeded lawns, freshly painted walls, lighting that works and clean play areas, to name just a few)
- Increased amenities – i.e. a monument sign for the community
- Aesthetically pleasing homes – Just take a drive through your community and you’ll see
- Rules and regulations deter nuisance activity and promote conformity – Beauty is not just in the eye of the beholder
- Added layer of support in dealing with neighborhood property issues – HOAs often partner with municipal code compliance departments to ensure adherence to the rules
- Community bonding and communication among neighbors – A great way to make new friends!
- Increased community pride – Who wouldn’t be proud to live in an attractive, well-run community?
- Financial stability – A well-managed HOA has a reserve study in place and funds available for future common area repairs and capital improvements, thereby reducing the likelihood of special assessments down the road
- TLC – Community common areas are cared for by trained professionals
And the number one benefit of living in a well-managed HOA…
- Properly protected property values!
It seems as though when you drive through a neighborhood that is maintained by an HOA there seems to be an overwhelming sense of pride in the neighborhood. While there are assessments associated with living in this type of neighborhood, it creates the type of atmosphere that makes homeowners happy to be living in their community. The HOA Board of Directors is comprised of volunteer homeowners who listen to the concerns of the residents and make decisions based on the best interest of the overall neighborhood. Allowing homeowners to voice opinions creates a greater sense of “community” as well as pride in what many would consider their greatest asset. The added value to living in one of these neighborhoods doesn’t just affect your property value— it affects the way that homeowners take pride in their community and neighborhood, which contributes to a higher standard of living for homeowners.
So I pay my assessments…..where does that money go?
- Provide accounting services, including payables, receivables, collections and financial reporting
- Assist in audit and tax preparation
- Prepare and file Corporate Annual Report to state
- Maintain current Corporate Book as per state regulations
- Perform on-site inspections
- Advise and coordinate with the Board of Directors for property maintenance of the common areas and/or exterior of homes, if applicable
- Oversee the service of contractors, including the bid process, contracts and communications
- Covenant enforcement
- Prepare and mail notices, proxies, ballots, and agendas
- Board meetings – arrange and schedule places, dates, and times of meetings
- Maintain current property files and records
- Reproduce and mail newsletters and general mailings
- Prepare and mail Welcome Packets to new owners
- Receive and process inquiries and complaints for assessment payments, general information, architectural approval, and covenant violations
- Maintain website containing association information
- Maintenance requests/follow through
- Responding to phone calls & emails
Although this list may not be all-inclusive, it does give you an idea of the areas of operation that are involved with managing your HOA. Most homeowners do not have the knowledge or time to manage these items without a management company.
Diversified Property Management takes pride in being very transparent to all of the HOAs we manage, as we believe this helps foster a trust level needed in establishing a good working relationship with all Board Members and community members alike. We also believe this is what has helped us become one of the leading community association management companies in the Colorado Springs area, recently profiled in the Colorado Springs Business Journal as an “Up and Coming Business.” Diversified provides an extensive list of management services with a special focus on customer service. For more information about what Diversified can do for your community, visit www.diversifiedprop.com
{ 0 comments }
