Push for Homeowners Association Full ...

Push for Homeowners Association Full Disclosure Law

There are 69 comments on the WHNT News 19 story from Apr 28, 2010, titled Push for Homeowners Association Full Disclosure Law. In it, WHNT News 19 reports that:

Alabama is one of a handful of states that doesn't have much consumer protection when it comes to buying a house.

Join the discussion below, or Read more at WHNT News 19.

First Prev
of 4
Next Last
Friskyfreddie

Huntsville, AL

#62 Jul 17, 2011
John Frank wrote:
HOAs are good ways to protect your property values. Otherwise the pig pens, junk cars and neglected property will render your property worthless. I never again want to live in a neighborhood without an owner-controlled HOA. I have tried it both ways.
However, the bad HOAs are the ones that are not true owner-controlled HOAs, instead they are developer controlled. NEVER, NEVER, EVER buy a home where the HOA is developer controlled. These should be against the law!! Developers have found that these are great vehicles for running a scam that can burden the HOA with debt ... money that goes directly into the developer's pockets. These also strip you of your rights over your property in a dictatorship arrangement where no have absolutely no rights!!!. The developer makes all of the rules, breaks all the rules.. and reaps all the rewards. and laughs all the way to the bank.. STAY AWAY FROM ALL DEVELOPER-CONTROLLED HOAs. Alabama is a breeding ground for theses corrupt organizations. There are several in Huntsville and Madison Alabama. If the realtor says that the HOA is controlled by the Developer...RUN !!..Don't walk away!! Some of these are the most enticing! With hotels, restaurants, yogurt shops, barbershops, meeting houses, walking trails, pizza parlors, community hotels.. This is the carrot that they dangle in front of your nose. Stay away from the developer-controlled HOAs no matter how inviting they seem to be...!!
Maybe you could try and make your point with a few local examples from the local area, showing where a known developer has done something bad with HOA funds, rather than just go off on a rant.

Since: Feb 11

Huntsville, AL

#63 Jul 21, 2011
Kenhunt wrote:
I think it is unfair to generalize about the various HOAs in our area. If you don't want to be in a HOA neighborhood, try your luck in a neighborhood with no association and see what happens: bad lawns, bad dogs, bad roofs, litter, bad paint, junk on the properties, declining values, cars on lawns, dead trees, lack of commercial development, noise issues, and no foreknowledge of important information. A properly administered association can help protect property values and the quality of life in a neighborhood. There are surely bad associations but there are plenty of good ones. This legislation is important and necessary, but there is no reason to fear neighborhood associations in general. Just IMHO.
Good ol' supply and demand will take care of HMO's. If you want to live in a neighborhood with a HMO, go for it. If you hate the very idea, do that. If nobody wanted to live in a HMO subdivision, the subdivisions would become vacant, but they don't become vacant because they look great. Another point that nobody brought up is that the city of Huntsville and the counties have safety and pollution regulations about grass, weeds, derelict cars, trash ect. You can call the city or county on people who have out of control properties. Also, there is allot you can do about people who are criminals in your neighborhood. If you think there is a drug dealer, call the cops. If you smell dope, call the cops. If kids race their cars on the street, call the cops. If there is a prostitute hanging on the corner, call the cops. If your too scared to keep your own neighborhood clean, join an association.
Frisky Freddie

Huntsville, AL

#64 Jul 23, 2011
PatrickPatrick wrote:
<quoted text>
Good ol' supply and demand will take care of HMO's. If you want to live in a neighborhood with a HMO, go for it. If you hate the very idea, do that. If nobody wanted to live in a HMO subdivision, the subdivisions would become vacant, but they don't become vacant because they look great. Another point that nobody brought up is that the city of Huntsville and the counties have safety and pollution regulations about grass, weeds, derelict cars, trash ect. You can call the city or county on people who have out of control properties. Also, there is allot you can do about people who are criminals in your neighborhood. If you think there is a drug dealer, call the cops. If you smell dope, call the cops. If kids race their cars on the street, call the cops. If there is a prostitute hanging on the corner, call the cops. If your too scared to keep your own neighborhood clean, join an association.
You are wrong about expecting civil authorities to worry over whether someone cuts their grass and such. If they act at all, it will take months to resolve, and the complainant will be at personal risk.

You are right about supply and demand dictating the attractiveness of various developments; where I live there is an HOA and of 175 homes, maybe three are for sale right now. Different strokes...
HOA Poor

Atlanta, GA

#65 May 7, 2012
Where on the web can you go to get current information on Alabama HOA laws? Last I saw 2009 meeting in Huntsville with our elected officals. Has anything changed since then? My HOA dues have increased 67% in five years. This is hurting property values in a new subdivision, still under developer's control of the HOA.
John smith

Grovetown, GA

#66 Jun 21, 2012
Try hawks ridge, they charge alot and the builder uses the money to cut his lots as they do not have a common area , club house , pool, etc...
Get Rid of the HOAs

Huntsville, AL

#67 Apr 17, 2013
The city has plenty of reasonable codes and restrictions that can protect the values of your homes. You don't need the HOAs dictators to tell you what to do with your property, especially when they make up their own ridiculous rules and threaten you on somethings that is not even stated in the CC&R. The future home builders should build their homes in some of the subdivisions with NO common amenities to maintain and get rid of the HOA requirement crap if they want to have a lot of customers. The HOAs who act like dictators can create a lot of problems out of nothing and continue to bother you if they don't like you for any reason. HOA is another way of dictatorship, which can take away your freedom and will make your life miserable. I think we should get rid of the HOAs; they just do us more harms than good and will give us lots of headaches. It is NOT worth having them.
Guy Berry

San Jose, CA

#69 Sep 21, 2015
Most buyers think about a townhouse or condo property the same way they do about a house. They look at price, location and condition. The difference is that there are at least four other things they should investigate.
1. Restrictions - the governing documents contain a list of what you can't do including but not limited to where you park (often must be in garage), what you can and can't do to the outside of your building, can you rent your units, what animals you can have and frequently the size also. Buyers should investigate these issues
2. Financial strength - HOA are supposed to use accural accounting when determining future repairs and replacement. Remember everything in that property will eventually have to be replaced including the pool, driveways, plumbing, lighting, etc, etc. This means that the HOA board is supposed to anticipate that in 10 more years, they need to replace the roof. But instead of waiting 10 years to collect the money from the ten owners, the hoa is supposed to determine what the cost will be in 10 years and start collecting now so the money will be there when needed. Typically boards don't like to raise their own dues, do it is common that they are underfunded.
What should be investigated is :
a. Based on this current years, how many $$ should the HOA have collected to date based in the survey of what funds will be needed
b. How many actually $$ have been set aside for these repairs and replacements
c. Then compare the "SHOULD HAVE" with the "ACTUAL $$" to determine the financial strength of the complex. It is not uncommon on older units to only have 1/2 or less of what they need
It is clear that someday , all the common area components that the HOA is responsible will break and have to be replaced. If the HOA has not adequately planned, when the bill comes due and there is not enough money previously collected, there is only two things that can happen. Both bad for the new buyer. Dues will be dramatically increased or as per the bylaws, they are allowed to do what is called a "special assessment" to each homeowner. I have been them as high as $10,000 per owner. And, if you can't pay it, the HOA can place a lien on your property and foreclose.
3. Contemplated litigation - I am not sure how long builder warranties for latent defects but litigtion is quite common against the builders in HOA properties. So, if some of the units are having construction defect issues and the HOA has been discussing the possibilities of suing the builder, Buyer should beware. Once a lawsuit is filed, lenders will want to run the other way. Many will not lender at all. Others will only lender with larger down payments or Adj rate loans. Litigation scares buyers so also plan on property values dropping for the 2-3 years it takes to settle with the builder. So, be sure to ask for copies of Board of Directors minutes and the HOA newsletter for at least 12 months. There will be lots of discussion in them long before a lawsuit is filed.
4. Owner occupied and delinquencies - Find out how many units are non-owner occupied with a tenant. If it is more than 25%, many lenders will not lend on these units. Also, we have have been tenants at one time but the truth is, that tenants don't take care of a property like an owner does, so if too many rentals, I would suggest against this complex. Also there might be 100 units but how many are actually paying their HOA dues? Find out because if the number is substantial, that means that projected income won't be real, meaning that they might actual have loss. Loss will have to be made up by those who are actually paying their bills.
If you are a buyer and want to protect yourself, ask the agent you are considering about some of these issues. if they give you a "what?" answer or get that look on their face, go find yourself another agent.
Duke

Madison, AL

#70 Sep 23, 2015
Yeah. Let's go get sushi, and not pay.
Guy Berry wrote:
Most buyers think about a townhouse or condo property the same way they do about a house. They look at price, location and condition. The difference is that there are at least four other things they should investigate.
1. Restrictions - the governing documents contain a list of what you can't do including but not limited to where you park (often must be in garage), what you can and can't do to the outside of your building, can you rent your units, what animals you can have and frequently the size also. Buyers should investigate these issues
2. Financial strength - HOA are supposed to use accural accounting when determining future repairs and replacement. Remember everything in that property will eventually have to be replaced including the pool, driveways, plumbing, lighting, etc, etc. This means that the HOA board is supposed to anticipate that in 10 more years, they need to replace the roof. But instead of waiting 10 years to collect the money from the ten owners, the hoa is supposed to determine what the cost will be in 10 years and start collecting now so the money will be there when needed. Typically boards don't like to raise their own dues, do it is common that they are underfunded.
What should be investigated is :
a. Based on this current years, how many $$ should the HOA have collected to date based in the survey of what funds will be needed
b. How many actually $$ have been set aside for these repairs and replacements
c. Then compare the "SHOULD HAVE" with the "ACTUAL $$" to determine the financial strength of the complex. It is not uncommon on older units to only have 1/2 or less of what they need
It is clear that someday , all the common area components that the HOA is responsible will break and have to be replaced. If the HOA has not adequately planned, when the bill comes due and there is not enough money previously collected, there is only two things that can happen. Both bad for the new buyer. Dues will be dramatically increased or as per the bylaws, they are allowed to do what is called a "special assessment" to each homeowner. I have been them as high as $10,000 per owner. And, if you can't pay it, the HOA can place a lien on your property and foreclose.
3. Contemplated litigation - I am not sure how long builder warranties for latent defects but litigtion is quite common against the builders in HOA properties. So, if some of the units are having construction defect issues and the HOA has been discussing the possibilities of suing the builder, Buyer should beware. Once a lawsuit is filed, lenders will want to run the other way. Many will not lender at all. Others will only lender with larger down payments or Adj rate loans. Litigation scares buyers so also plan on property values dropping for the 2-3 years it takes to settle with the builder. So, be sure to ask for copies of Board of Directors minutes and the HOA newsletter for at least 12 months. There will be lots of discussion in them long before a lawsuit is filed.
4. Owner occupied and delinquencies - Find out how many units are non-owner occupied with a tenant. If it is more than 25%, many lenders will not lend on these units. Also, we have have been tenants at one time but the truth is, that tenants don't take care of a property like an owner does, so if too many rentals, I would suggest against this complex. Also there might be 100 units but how many are actually paying their HOA dues? Find out because if the number is substantial, that means that projected income won't be real, meaning that they might actual have loss. Loss will have to be made up by those who are actually paying their bills.
If you are a buyer and want to protect yourself, ask the agent you are considering about some of these issues. if they give you a "what?" answer or get that look on their face, go find yourself another agent.

Since: Nov 15

Location hidden

#71 Nov 8, 2015
Good luck with this one.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 4
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Huntsville Discussions

Title Updated Last By Comments
the soul of star 6 hr Star will shine a... 1
The New Grissom New Century High School and Ind... (Jan '13) Sat ThomasA 4
alabama lottery Fri ThomasA 1
Making America Great Again Feb 22 ThomasA 10
News Contact WHNT NEWS 19 (Oct '10) Feb 22 ThomasA 20
Businesses that hire illegal immigrants (Sep '10) Feb 22 Nancy Millican 36
Shahdad Naghshpour Feb 18 Concerned Anerican 1

Huntsville Jobs

More from around the web

Personal Finance

Huntsville Mortgages