What You Need to Know About HOAs

Homeowner Associations

Chances are you know someone who is part of a Homeowners Association or HOA, but do you know what they are all about?

HOAs’ Primary Function

Homeowner’s Associations are generally founded to maintain property values and standards of living. The association does that within the neighborhood by collecting membership dues and setting guidelines. These are meant to maintain common areas, such as roads, lawns, clubhouses, gyms, etc., as well as to ensure the standards of individual properties.

HOAs are generally comprised of a board, a group of people selected by the homeowners, to provide guidelines and ensure maintenance. While some homeowners have their own outdoor space and are required to provide their own maintenance, the HOA will put together guidelines for the exteriors of the homes. When you move into an area where such a group exists, you are required to become a member, and you will be subject to their regulations. You will likely be invited to attend the HOA’s meetings (usually monthly) along with all members.

What You Will Need to Know About HOAs When Planning a Barndo

Before you invest in a property, it is best to find out if a HOA is associated with the neighborhood. Check with the realtor or developer; they should know if there is a HOA. Your second option is to speak to the neighbors. Different HOAs have very different expectations, and whether you check out the HOA and what they expect before you buy into the neighborhood or not, you will be required to work out any differences of opinion with the HOA.

The HOA’s power is set out in the “Covenants, Conditions, and Restrictions” document and it is, for the most part, a legally enforceable set of rules which you must follow. Ask for a copy of this document and read it thoroughly.

Aesthetics are often very important to HOAs. After all, the visual can have a big impact on property values and, some would add, the quality of living. Some guidelines that HOAs may enforce can include the size of your building, whether your driveway must be paved, setbacks, and what the building may be used for. For example, can you use this for a rental property or have a commercial print shop set up in the garage?

The aesthetics question and its relationship to property value can lead to misunderstandings and roadblocks when you speak to the HOA regarding building a barndominium. Some members may think of a big agricultural pole barn that does not add to the neighborhood ambiance in a positive way in their minds, and they reject it sight unseen. They believe a barndo will bring property values down.

Since more and more people have built barndos in recent years, other people may have a greater understanding of what barndominiums can be because they have experience with someone who built one in the past. However, you cannot be sure your HOA will be receptive to your plans without explanations.

Tim Noble, owner of Kentuckiana Builders, New Albany, Indiana, suggested that you simply avoid the whole topic by not specifying the type of construction to the HOA.

“Don’t say we are building a ‘barndo’, ‘barndominium’, ‘post-frame’, or ‘shome’. Just tell them, ‘these are our plans’,” he suggested. “They will peruse your plans, see that they are approved by the engineer, and 99% of them won’t know that they have just approved a barndominium”, he added.

Of course, before you submit your plans, you may want to look around the neighborhood to see what homes are already there and get an idea of what has been approved. You will want to make sure that your barndo is not likely to stand out like a sore thumb.

Pros of HOAs

-Improved or Maintained Property Values

The rules the HOA puts in place may ensure that your property value is not negatively affected by others’ actions. For example it is unlikely that a business that generates a lot of noise and pollution will be allowed to move into the area. Junker cars or trash piles sitting around the yard are unlikely to be tolerated, and there may also be limits on the type and number of animals that may live on a property.

-Increased Security

Sometimes HOAs gate the community and in other instances they create community watch programs. Even if there is no formal watch program in your neighborhood, the association can create a bond between members that leads to neighbors looking out for each other.

-Reduced Maintenance Costs

If there is shared space, such as a neighborhood playground, you may find that your maintenance costs are not as high as they would be otherwise.

-Shared Facilities- Some HOAs provide residents with facilities the residents could not finance on their own, such as swimming pools, tennis courts, party rooms, barbecuing and picnicking areas, and other such facilities.

Cons of HOAs

-HOA Fees

Dues can add up over time, especially if updates are needed that the original dues could not cover, and eventually they can become a financial burden.

-Prohibitive Rules

Some HOAs are very restrictive regarding what members can do to express their personality on their own property.

-Inflexibility

Applications for exceptions to or changes in the HOA rules may require a majority vote, which can leave a resident with little recourse if a requirement or restriction is inflexibly enforced.

-Limited Privacy

HOAs can enforce rules such as what type of fence or outbuilding you may wish to install or other restrictions which can make privacy difficult.

Examples of Some HOAs’ Regulations

Sometimes HOA policies are simply a tightening of zoning rules. For example, zoning sets the setback from a property line where a structure may be built. An HOA can require more space for the setback.
Often the HOA will restrict materials that can be used to build within the neighborhood. For example an HOA might require that buildings are covered in wood, stone, or brick. They might also specify the colors that are acceptable.
The number or type of vehicles allowed on the premises can be restricted. There may even be a stipulation that all vehicles must be parked inside a garage or shed at all times.
There can be restrictions on decorations, such as size and kind of Christmas decorations and possibly duration limits, such as they can go up in November and must come down in January.
Landscaping. There may be rules regarding how often the grass must be cut and about the upkeep of trees and what types of fences or sheds are allowed.
Often there are noise restrictions. For example loud music or construction activities could be banned from 9pm to 9am.
The size, number, and kind of pets may be detailed by the HOA.
Businesses are usually okayed as long as they are not noisy and do not produce a lot of traffic, but some may restrict business activity even more.
Long-term rental of your property may not be allowed without permission, and even short term may be restricted.
There may be strict rules around trash and recycling, such as how long the containers may remain visible on trash day.

The Bottom Line

HOAs are in place to make life better for members. Some HOAs can be very strict about the rules; others are more laid back. The most important thing in regard to a HOA is to be familiar with what is required of homeowners in the HOA’s purview. If you feel the HOA is being unreasonable, you may be able to legally challenge it. Noble said that it rarely comes to that; people usually work it out. However, the easiest course of action is to know what restrictions you are agreeing to before you purchase a property.