HOA 101

Here’s a quick breakdown of what a Homeowners Association also known as an (HOA) is and what that means for you if you ever own or live in a home that is a part of one. 

Any homes residing inside the boundaries of an HOA are all required to pay a fee to the association either monthly, quarterly, or annually. These fees can vary and typically cover the cost of services like landscaping, snow plowing, water, and sometimes even garbage fees. 

Before purchasing a home that you are seriously considering, it would be a good idea to get a copy of Covenants, Codes, and Restrictions of the HOA. You'll want to find out the boundaries of that particular homeowners association and exactly what the association covers. When you are in the process of purchasing a home here in Alaska you will receive a Resale Certificate which has all of those rules, the minutes, and if the dues have been paid and are up to date. Your Resale Certificate will also tell you if there is any maintenance work that needs to be done to the exterior that year. If this work is not negotiated prior to you closing on the home you as the new owner will be responsible for paying for that work to be done. This is why we always stress to our clients that they closely and thoroughly review ALL the HOA documents provided to them.

After you have a quick understanding of the restrictions you may want to take a look at the neighborhood and see if those rules are strictly enforced/followed. Some homeowners associations do not allow overflow parking on the side of the street, or require you to take down your Christmas lights by January 1st. If you are planning on doing any work to change the exterior of the home, landscaping etc, taking a quick glance at the rules may also help you know what is allowed and what you'll be expected to upkeep. Ultimately, if you are in love with a home these items may not be deal breakers for you but, it is nice to get a good understanding of the expectations. One of the positive things about an HOA are the homes within the neighborhood tend to stay upkept which keeps the property values up!

As always, if you have any questions about HOA’s or the specific one for the home you are interested in, we are happy to help!