If you are considering purchasing a lot in a community with an HOA (Home Owners Association) to build your new home, you may want learn as much as you can about the HOA.

The HOA is usually responsible for maintaining the common areas of a community, such as the main entrance, swimming pools, club houses, etc. Each land owner pays a fee to the HOA to cover the costs. The HOA has a governing board made up of volunteers from the community (in established communities) or builders/developers in newly built communities.

The HOA fee is a mandatory fee due on a set schedule. The governing board, with input from the community, will determine the amount of this fee and the payment schedule. If the HOA does not collect much money to keep in reserves, the fee may change during the course of the year if the cost for the community increases, such as an increase in the cost of garbage pickup.

It may be time well spent to attend an HOA meeting to meet the members and learn about any proposed special assessments. A special assessment is a one-time fee to each home owner to cover the costs of a pricey item, such as a new roof on the clubhouse.

The HOA has a set of basic rules and regulations that you will find in the association’s governing documents or Covenants, Conditions & Restrictions (CC&Rs). You should read this document very carefully, as it may contain a restriction on something you had not expected. For example, many HOA’s prohibit you from storing RVs and boats in your driveway.

If you don’t have time to research the HOA fees, covenants and impending assessments, contact the experienced builders at All State Homes for advice on whether a particular community is appropriate to build your dream home.