Benefits of Community Association Living
I read every day about people complaining about living in an HOA. They complain that they are too restrictive, infringe upon their rights, and of all things, illegal!
Here are the facts and issues why there are associations:
Government agencies (counties and municipalities) who provide the approvals to the builders who want to develop the land, will require that the builder form an association as part of the approval process. This association in turn will be in place to keep the streets repaired, utilities functioning, common grounds maintained and to provide other services and amenities to the residents. Think of it as a way for a government to have someone else (an association) administer and handle that subdivision for them. It is a cost- effective way for government services to be provided to a group that otherwise would have to be handled by a government bureaucracy. In addition to the association, owners also get the benefits (police, fire rescue, parks, etc.) and the representation that a municipal or county government will also provide, if they so desire.
Today, in order to get development loans, construction loans and finally end loans, lenders will also require that an association be put in place and functioning. Why? It is quite simple, the lender wants to make sure that their loans will be secure and repaid. They want that underlying asset that they are lending their money on to be worth more than the loan. The lenders believe and I concur that by having an association in place that will provide, oversee and maintain the land, buildings and common grounds and amenities where their loan is being placed, that this will help to get their loan repaid.
Builders in their market research see that the vast majority of purchasers want an association type environment, whereby a family can live in a safe community, with amenities, planned activities and common maintenance, along with other like minded people. A builder can provide shared amenities that go along with the purchase that a family would otherwise not be able to afford on their own. It really is a great way for a family to live, if they so desire.
As you can see, governments and lenders want there to be community associations. Both builders and buyers want this kind of living as it provides a very high form of living at a low cost. Can there be problems in community associations? Sure there can, just like there can be in any neighborhood or municipality. But I believe that if one embraces the community association concept, read and abide by the association documents and finally get involved to make things better in their community association, then one would see why they are a great form of living and something that is here to stay for a long time.
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