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Andrews, Bongar, Starkey & Clagett: Waldorf, Maryland Attorneys

Home Owners Associations: FAQ for Home Owners

Do you own a home that is part of a Home Owners Association (HOA), or are you about to buy a new home that is? Do you pay dues to a HOA? Do you know why? Do you know what they do with your dues? If you have questions about HOA, we have answers for you. Please read on to see the answers to some of the most frequently asked questions about home owners associations.

Question:

I am thinking about buying a house. How do I know whether the house is in a community with an HOA?

Answer:

You should call your local realtor, who will be able to tell you whether the property is part of an HOA. When you buy your new home (at an event called “the settlement”), your settlement agent/title company should give you copies of the governing documents of the HOA. We recommend that you obtain these documents prior to settlement so that you can review them and understand what your obligations will be and how you might be limited to changing the exterior of your new home (and the yard).

Bonus: Did you know that Andrews, Bongar, Starkey & Clagett, P.A. can serve as your settlement agent? Call Vicki Rickett, our settlement specialist to learn more.

Question:

What are the “governing documents” of my HOA?

Answer:

Most HOAs are non-profit corporations. All corporations have “bylaws” which is the document that explains how the corporation is operated. In the case of an HOA, the bylaws include the following information: (1) the number of people that must serve on the Board of Directors; (2) the obligations/duties of the Board of Directors and officers; (3) how annual meetings should be conducted and what notice is required; and (4) how certain decisions are made that will affect the neighborhood and individual property owners.

In addition to the bylaws, there is a “Declaration of Covenants, Conditions, and Restrictions” (or a document with a similar name). The primary purpose of the Declaration is to protect the value of your asset: your home. The Declaration accomplishes this by restricting the types of activities that are permissible within your community and places limitations on certain changes or additions that you can make to your home. The Declaration also establishes the basis for charging an HOA fee, which is commonly known as your “annual dues.”

The Declaration allows the Board of Directors to adopt other regulations that are not inconsistent with the bylaws and Declaration. The most common document is the Architectural Guidelines. Generally, the Architectural Guidelines are written by the original builder/developer of the community, but may be amended from time to time, usually by the Board of Directors; you should check your bylaws and Declaration for how these amendments can be adopted by the HOA. Make sure that you obtain these Architectural Guidelines; this document contains valuable information such as what changes require prior approval from the HOA and how you obtain authorization from the HOA. Warning: if prior approval has not been obtained and you complete the change to your home/yard, you may be subject to fines by your HOA, which can result in a lien against your home.

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Question:

How can I obtain a copy of the governing documents for my HOA?

Answer:

If you are thinking about buying a home that is subject to an HOA, your realtor can obtain a copy of the governing documents. Your settlement agent (who may also be referred to as a “title company”) should provide a copy of these documents to you at settlement. You should ensure that your realtor/settlement agent gives you a copy of the bylaws and the Declaration and all amendments/supplements. If you have misplaced your governing documents, you should contact your HOA Board of Directors and/or the property management company (if any) and obtain copies of these documents.

Question:

Why do I have to pay HOA fees?

Answer:

HOA fees (usually described as “Annual Maintenance Assessments” in the HOA’s governing documents), are required to be paid, as assessed or charged by the HOA. In large-scale communities, HOA fees may be used to maintain recreational facilities such as playgrounds, tot lots, community pools. Even if your community does not have these recreational facilities, HOA fees are also required to pay for landscaping the common areas (such as trimming trees, mowing the grass, etc.) and may also be used to pay for trash service (Waste Management or other company) and to plow the snow from streets and alleys in the winter. There are also “hidden costs” of maintain HOA property; for example, the maintenance of a stormwater management pond. Oftentimes, the County requires that these ponds must be maintained by the HOAs, which can be expensive. Also, for larger-scale communities, the HOA fees are used to

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