Your home is one of your most costly investments, and you’ll want to ensure it appreciates in value when it comes time to sell. While you can do your part to maintain your personal property and increase its value through renovations and thoughtful repairs, part of your property value also resides in your neighborhood and your neighbor’s ability to care for their homes.
A great way to preserve the value of your home and ensure others are keeping up their end of the bargain is to live in a community or neighborhood with a homeowner’s association, also called an HOA. An HOA consists of a group of community members that enforce certain restrictions on what residents can and can’t do to maintain the neighborhood’s quality. If you purchase property in a neighborhood with an HOA, you automatically become a member of that association and must follow its set of rules.
However, some HOA members may not always follow the rules. When a member breaks an outlined regulation, the Board of Directors can enforce disciplinary action on the member. Does an HOA reserve the right to evict a member who continues to violate its rules?
What is an HOA?
An HOA is a governing body that sets rules and guidelines to improve the community and increase property values. Any neighborhood or community may have an HOA, ranging from suburban areas to New York City buildings. HOAs are not-for-profit organizations that collect membership dues from all members to help maintain community areas like a park or a pool. Membership dues can vary greatly depending on the community’s location and amenities, but homeowners can expect to pay $200 to $300 monthly in membership fees.
The Board of Directors runs an HOA by adding or modifying regulations, then enforcing those rules on members. An entire HOA will vote for its board members. The body may vote for other measures if needed, such as increasing membership fees past the accepted threshold.
HOA Primary Goal
An HOA’s main goal is to maintain and increase property values for every community member to ensure they call sell their homes at a profit down the line. To achieve this goal, the board will enact measures that preserve the general aesthetics of the neighborhood and keep it safe and attractive. Some rules may permit what homeowners can place in their yards, what color they can paint their house, and what materials they can bring to communal areas, such as not having open containers of alcohol on the sidewalk.
An HOA will also handle disputes amongst other members of the community, set budgets, and brainstorm ideas about how to further improve the neighborhood.
What Happens When You Break an HOA Rule?
Homeowners may intentionally or unintentionally break HOA rules. The rule that a member breaks may vary in severity, and the board will follow a set protocol to properly discipline the rule breaker. Many HOAs will start by warning their member that they violated a rule and allow them the chance to remedy the situation.
Repeat offenses or more intense violations may result in fines, with an increasing amount for each day that the member does not rectify the violation. HOA members can also receive fines for not paying their membership dues.
Can an HOA Evict a Homeowner?
In extreme cases, an HOA can use stronger disciplinary measures to require its members to comply with their rules. An HOA can place a lien on a property, which limits the homeowner’s ability to easily sell their home in the future. A lien is a legal debt that the owner must pay before they can sell or refinance the property. Liens are more drastic measures than fines, and homeowners should take care to remedy a situation before it leads to a legal debt.
Even in the most amplified cases, an HOA does not reserve the power to evict you from the association or your home. They may, however, reserve the power to enact a foreclosure on the property.
HOA Lien Foreclosure
Once an HOA places a lien on a home, they may have the opportunity to foreclose on the property. Depending on individual state laws and the individual HOA’s regulations, the board can put forth a judicial or nonjudicial foreclosure.
In a judicial foreclosure, the HOA can file a lawsuit against the property owner. If they win the lawsuit, they then obtain the power to sell the home to satisfy the outstanding lien.
In a nonjudicial foreclosure, the HOA can work outside of the court and follow a set of protocols set by their state law and association regulations. Not all states allow nonjudicial foreclosures.
Due to the serious nature of foreclosure, most states make HOAs abide by a strict set of criteria to complete a foreclosure. HOAs foreclosing on homes can happen, but it is not common. Furthermore, the HOA does not have the power to quickly and effectively evict a homeowner from their property as they are not a mortgage lender or landlord.
Can an HOA Evict a Renter?
There are cases where a homeowner will rent out their property to generate rental income. In that case, the homeowner remains a member of the HOA and becomes responsible for the tenant’s actions. The tenant will not explicitly pay the HOA membership fees, but the homeowner can roll part or all of that cost into the tenant’s monthly rent.
If a tenant breaks a rule or regulation, it is the homeowner’s responsibility to deal with remedying the situation. In this case, the HOA does not reserve the right to evict the renter for breaking rules and regulations; only the homeowner can make that decision. However, the HOA can place fines and liens on the homeowner and their property, just as they would if it were the homeowner directly violating the regulations.
Investors looking to rent their property to potential tenants should take care to approve tenants who will obey the HOA rules and regulations. They can draft leases that explicitly explain the tenant’s responsibility to abide by the rules of the association. A landlord can draft a lease that explicitly states the tenant must pay the HOA fees and then give the landlord the power to evict the tenant for failure to pay.
Common HOA Violations
Even though your HOA cannot evict you and will have to pursue a lengthy process to foreclose on your home, you should still take care to follow their rules and regulations. Failure to comply can result in disciplinary action and costly fines.
Most HOAs will include rules and regulations about the following:
Noise
HOAs will limit the amount of noise that you can make, typically enforcing quiet hours between 11pm and sunrise. Those who wish to throw loud and extravagant parties that run late into the night will need to get explicit approval from their association or find another place to host their party.
Pet Policies
Some associations may have regulations about the type of pet you can have in your home. HOAs may restrict the breed or size of your pet and then further restrict where that pet can roam about freely. Typically, the board requires that dogs are always on a leash in communal areas.
Trash Pickup and Garbage Storage
HOAs will likely require you to conceal your trash bins until a set pickup time to maintain the look of the neighborhood. They may further restrict the type of trash you can set out on the curb, meaning you will have to directly bring large items, like a mattress, to the dump. Further regulations may require you to break down cardboard boxes.
Property Exterior
Many associations have specific rules about the exterior of your home, which determine the color you can paint your house, the size of your mailbox, and the style of your window or door. If you’re planning to lavishly decorate and customize your home, you will need to check your rules before painting something hot pink.
Gardening and Landscaping
Your HOA will further regulate your home’s appearance through your gardening and landscaping, commonly requiring you to keep your front yard well-kept. You’ll likely need to keep your grass under a certain height, trim the hedges to a specific size, and not use certain plants in your landscaping. You will probably receive a visit or notice from your HOA if you decide to place a life-size gnome in your front yard.
For most homeowners, regulated landscaping will not interfere with your desired lawn design. However, those who wish to get creative or convert their front yard into clover or wildflower instead of grass may want to consider moving to a neighborhood without an HOA.
Off-Season Holiday Decorations
Yes, it’s a thing! Your HOA board might not allow you to hang skeletons all along your fences for Christmas. Some may even have restrictions on when to start and take down your decorations. If you do it too soon, that might mean a warning or fines coming your way, which could potentially ruin your holidays. HOAs can be incredibly strict with their timeline and not let homeowners add their holiday lights until after Thanksgiving.
Parking and Vehicles
An HOA can also limit the type of vehicles you park on your property. If you own a boat, RV, or another large vehicle, you may not be able to keep it at your home. Furthermore, you may only reserve the right to park your car in certain areas, like in your driveway instead of on the street. Guests may only be able to park their car down the block, in a designated parking area, or other predetermined space.
Illegal Rentals
While homeowners may wish to rent their property, they may not reserve the power to accept tenants and charge rent. The HOA may decide that unknown tenants pose too high a risk and restrict the ability of all homeowners to rent their property. Additionally, the HOA’s insurance policy may depend on the ratio of owner-occupied vs. rent-occupied homes. Investors or those wishing to sublet their homes should consult the HOA’s regulations before purchasing property in the community.
Conclusion
HOAs provide security for homeowners who wish to profit from selling their homes in the future. The strict regulations also ensure that other community members do not disrupt your day-to-day and overall help keep your neighborhood or building clean, organized, and safe.
From time to time, homeowners may unknowingly or purposefully break their HOA’s rules. They then become subject to various disciplinary actions, ranging all the way from warnings to potential foreclosure. While your HOA cannot evict you or your tenants, they can seize control of your property and sell it off to satisfy a lien. Therefore, property owners should familiarize themselves with their association’s rules and ensure they comply. HOA communities provide security for all members, and following the regulations gives all members the best chance of raising their property value.
