How to Start an HOA

Setting up an HOA

According to expert’s homeowner associations (HOAs) are increasing at a fast rate. In the US HOAs have generally expanded, they currently cover a considerable percentage of the American population. Community associations privately manage most of these housing facilities. HOAs provide the community with assistance on problems faced occasionally. They generally deal with matters like security by offering the community a safe environment that they can stay in; HOAs also address poor maintenance of houses as well as any other issues bothering the community. Since HOAs have power over society, they can cause conflicts among society members.

Homeowners Associations are created by developers when a new housing center is built. New tenants and homeowners have to join the HOA to obtain a house; therefore, most individuals that are part of HOAs do not understand how they operate and their importance. They bought the house because they loved its architecture. In other construction being part of the HOA is not mandatory. HOAs primarily focus on developing rules and principles to be followed in particular communities and protect their housing privileges.

How to set up a Homeowners Association

When starting a homeowner association, the following should come in handy.
a. Create a collective group of individuals to be part of the HOA
When developing an HOA, it is suitable, to begin with, a small number of people who will take the responsibility of starting the association, and communicating with neighbors on the advantages and importance of joining an HOA. It is essential that one gets support from the community before actually starting the association. A developer should, therefore, organize an initial meeting where all concerned members can avail themselves. The meeting should provide insight into why the owner is passionate about setting up an HOA.

Members should be aware of the state laws on establishing an HOA. As the head of an HOA, it is crucial to look for ways to expand the association by inviting more members. Familiarizing with the community’s problems is an effective way of developing the HOA.

b. Interactions with the developer through meetings
After the HOA has been set up and all members have acknowledged themselves the association, it is vital to hold meetings that allow the members to air out their concerns to the developer. The sessions will enable community members to interact with the manager and understand him better. Through the organized meetings, the community can state services they would like to be offered.

c. Endorse the importance of the HOA
The head of the HOA should use the meetings as a platform for encouraging neighbors to join by making them aware of its advantages. One can sell out the idea of an HOA by stating how it will be used to improve all aspects of the community generally. The developer should discuss matters like safety concerns and improving living conditions as a way of attracting more members. One can also consult on the equal use of societal resources to benefit all individuals.

d. Provide various fee arrangements to enhance involvement
The head of an HOA should come up with activities that require the participation of the community. For example, they can come up with a project to build a local swimming area. Present the project to the community and agree with them on donated funds to be made to make the idea a reality. Fees to be provided should be available to all and not affect the general income of some individuals.

Don’t forget the HOA needs insurance coverage too. To learn more about HOA insurance, contact our team at Balsiger Insurance.

e. Make the Association Voluntary
HOAs can either be mandatory or voluntary. Mandatory HOAs require an owner to join the association as soon as they purchase a house. Mandatory associations are better since they do not force participation; thus, all members will get involved without any doubts. At the start of an HOA, it is essential to make it voluntary. By making it optional, the member will not feel forced to do anything against their will.

Conclusion
When setting up an HOA be it is prudent to be aware of the services you would like to provide the community. Most associations offer services like fast Wi-Fi, sewer disposal, water availability, garbage disposal, landscaping (make sure the landscapers are insured!) and many more. The HOA should provide specific limitations on houses in the community. The restrictions provide the community on laws to be followed on the houses.