Buying a house can be a dream come true, or turn into your worst nightmare... Especially if there's a dreaded Homeowners Association (HOA) involved. The internet is filled with HOA horror stories about people receiving warnings and fines for the most bizarre things. Whatever happened to live and let live?
One couple thought they'd landed their dream home until it all started going south. The husband has told how they received several $1,500 fines for parking a rented RV in their own driveway while packing for a trip. Not one to take things lying down, the homeowner decided to go to war. Soon, the entire HOA was dissolved and half the board members had packed up and left.
"NEVER purchase a house in a HOA": That's one man's advice after he endured a nightmare from hell
When he received several $1,500 fines for parking an RV in his own driveway, he went to war against the HOA and won
"They have more power than you can think of": He gave more details while engaging with netizens
Are HOA fines legit, and where does your hard-earned money end up?
Many Homeowner Associations (HOA) dish out more fines than some traffic officers do. Whether it's for having the incorrect color paint, parking where you shouldn't, or even leaving your mop out to dry, people are being forced to cough up lots of money for their misdeeds and sins.
Some argue that HOA fines are just a money-making scheme for the association. Others swear the board members are pocketing the cash and jetting off on 'bonus' vacations. But according to The HOA Handbook, "the primary goal is to encourage community-wide compliance with the agreed-upon rules, which protect property values and ensure a pleasant living environment for everyone."
The handbook states that rather than thinking of fines as a punishment, you should see them as a corrective measure. But for some of those on the receiving end, it's easier said than done. Especially when it's a nonsensical or stupid fine that amounts to thousands of dollars.
"When a homeowner receives a fine, it’s a direct consequence of a specific violation, like an unkempt lawn or unauthorized exterior modification," argues The HOA Handbook. It goes on to note that the fine system creates a "fair and consistent" method for addressing issues that affect the entire neighborhood’s character and safety.
"The financial aspect reinforces the seriousness of the community’s covenants, conditions, and restrictions (CC&Rs)," it adds. Basically, if you plan to buy property in a HOA, you should be prepared to follow the rules.
So where does the money collected from fines end up? It's almost always funneled back into the community’s general operating fund to benefit all homeowners collectively, claims the handbook.
Your fines go towards paying for things like general landscaping or common area maintenance, and repair/upkeep of community amenities like pools, clubhouses, and playgrounds. It may also be used to pay utility bills for shared spaces, including lighting and irrigation. Or for administrative costs, such as postage and management software. Sometimes, fines are used to pay neighborhood security services and/or patrols.
According to legal experts, HOA fines are enforceable and are not illegal. However, says real estate lawyer Barbara Jordan, they "must be set forth in the association's rules and bylaws."
Jordan's advice is to check the community's CC&Rs before complying. If your fine isn't listed, you might not need to pay.
People praised the man for taking on the HOA and winning
