Homeowner Association
Benefits and Challenges of a Homeowner Association (HOA)
Virtually every parcel purchase includes county documents which refer to a covenant for maintenance and repair of Tanglewood. The covenant is entitled "The Road Maintenance Agreement (RMA)," and states, "Owners agree to share equally in all costs and expenses of maintaining and repairing Tanglewood..."
An alternative to the RMA is a Homeowner Association (HOA). However, a HOA comes with significant overhead and, potentially, additional covenants depending on what the community elects to include.
Here are some general pros and cons (using a Chat with GPT 4). Not all are specifically applicable to road maintenance and repair but have been included for completeness.
Pros:
Maintenance: HOAs typically handle maintenance of common areas, so you don’t have to worry about landscaping, snow removal, or other upkeep outside your property [1].
Amenities: Many HOAs offer access to amenities like pools, gyms, and community spaces [1].
Property Values: HOAs often help maintain or increase property values by ensuring a uniform and well-kept appearance of the community [1].
Community: There’s often a stronger sense of community, with organized events and shared spaces promoting interaction among neighbors [1].
Cons:
Fees: HOAs charge monthly or annual fees that can be significant, and these can increase over time [2].
Rules: Living in an HOA means adhering to its rules, which can be restrictive and cover everything from the color of your house to the type of mailbox you can have [2].
Risk: If an HOA is poorly managed, it can lead to financial difficulties, which might impact all members of the community [2].
Disputes: Conflicts can arise between homeowners and the HOA board, especially if residents feel the rules are unreasonable or the fees are too high [2].
Resources:
Revised Code of Washington for an HOA
The powers associated with an HOA are described within the Revised Code of Washington, and a new bill (HB 1110, 2023) may also affect HOAs.
RCW 64.38.020
Association powers.
Unless otherwise provided in the governing documents, an association may:
(1) Adopt and amend bylaws, rules, and regulations;
(2) Adopt and amend budgets for revenues, expenditures, and reserves, and impose and collect assessments for common expenses from owners;
(3) Hire and discharge or contract with managing agents and other employees, agents, and independent contractors;
(4) Institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more owners on matters affecting the homeowners' association, but not on behalf of owners involved in disputes that are not the responsibility of the association;
(5) Make contracts and incur liabilities;
(6) Regulate the use, maintenance, repair, replacement, and modification of common areas;
(7) Cause additional improvements to be made as a part of the common areas;
(8) Acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property;
(9) Grant easements, leases, licenses, and concessions through or over the common areas and petition for or consent to the vacation of streets and alleys;
(10) Impose and collect any payments, fees, or charges for the use, rental, or operation of the common areas;
(11) Impose and collect charges for late payments of assessments and, after notice and an opportunity to be heard by the board of directors or by the representative designated by the board of directors and in accordance with the procedures as provided in the bylaws or rules and regulations adopted by the board of directors, levy reasonable fines in accordance with a previously established schedule adopted by the board of directors and furnished to the owners for violation of the bylaws, rules, and regulations of the association;
(12) Exercise any other powers conferred by the bylaws;
(13) Exercise all other powers that may be exercised in this state by the same type of corporation as the association; and
(14) Exercise any other powers necessary and proper for the governance and operation of the association.
Resources:
Revised Code of Washington: Homeowners' Association (Chapter 64.38)
Washington State Legislature House Bill 1110