Where Do HOA Dues Go?
The financials are published on the website so you can see how our money is spent. We pay for a management company to handle things like dues payments, covenant violations, mailings, and correspondence with lenders and title companies. We also sponsor social activities for the neighborhood. Importantly, we are currently building up a surplus for future coverage of expenses that are currently handled by the SID, as those expenses will become our responsibility once the bonds are paid off and the SID dissolves. So things like mowing and maintenance of the common green spaces -- which is very costly -- will become our responsibility.
Who are the parties involved in a new residential development?
Aside from homeowners, the most important parties in a real estate development is the sanitary and improvement district (SID), the developer and the homeowners association.
What is the SID responsible for?
The SID is a governmental subdivision. It is responsible for streets, sewers, street lights, and other public improvements. It pays for improvements and maintenance by collecting taxes.
Who do I contact about maintenance of public green space, landscaping, street repairs, etc.?
The SID attorney is Pansing, Hogan, Ernst & Bachman, LLP law firm (Denny Hogan is the SID attorney), 402-397-5500, address 10050 Regency Circle #200, Omaha, NE 68144.
Lamp Reynearson & Associates is the SID's engineer office, 402-496-2498, https://lamprynearson.com
What are the responsibilities of the developer?
The developer is responsible for all of the real estate that it owns in a development, from vacant lots to model homes. Lots or homes owned by other builders are not the responsibility of the declarant. Additionally, the developer may be granted certain rights under the Declaration of Covenants naming the developer as the “Declarant”. These rights commonly include exemption from homeowner association dues and the right to approve or deny construction plans during the initial buildout of the neighborhood.
What are the responsibilities of the homeowners association?
The rights and responsibilities of the association vary based on the covenants and the documents governing the association. For example, not all associations own real estate, but an association would be required to maintain and insure any real estate which it owns. The association may have the right to enforce the covenant or to review construction plans once the rights of the Declarant have expired. Associations have the rights to collect dues from homeowners. Generally, the association is empowered to take actions to benefit the whole neighborhood, from working with the SID, the developer and the county to holding social events.
How do covenants apply to homeowners?
A Declaration of Covenants, Conditions, Restrictions and Easements (Covenants) is recorded against all of the lots in a neighborhood before lots are sold to individuals. These Covenants generally control the ways that the lot could be used, whether homes of a specific size are required, specific materials are to be used, or approval of construction plans must be obtained from the developer or the association. The Covenants provide for consistent development within a neighborhood or a portion of the neighborhood. The Covenants also provide owners with rights as members of the association and the obligation to pay dues to the association.
Can a neighborhood have more than one set of Covenants?
Yes. For example, a neighborhood may have one set of Covenants that applies to all homes, and a second set of Covenants which only applies to a smaller portion of the development. An individual house may be subject to more than one set of Covenants and the owner may be member of more than one association. For example, the owner of a townhome might be a member of the entire neighborhood association and also a member of the townhomes association, which charges additional dues and provides additional services.
Who controls the association?
When the development is first started, the developer controls the association because the developer is the only member of the association. The developer elects directors and officers, who run the affairs of the association. Eventually, either through the passage of time or the request of residents, the association is turned over to the residents. The residents, as members of the association, elect directors of the association. The directors then appoint officers of the association, such as the president, secretary and treasurer. The officers and directors manage the business of the association, as required and permitted by the Covenants, as well as the bylaws of the association. In particular, the directors and officers are charged with assessing dues, paying bills, and maintaining the legal and financial records of the association.
What can the association do if someone does not pay dues?
If a homeowner is required to pay dues and is not subject to any exceptions, the association may file a lien against the homeowner’s lot. The lien can be foreclosed or a suit can be filed against the homeowner to collect the dues directly. The association should consult with an attorney in analyzing its options.
Should an association have a property management company?
That is left to the discretion of the association. Most associations that have minimal dues and do not undertake much activity, do not have a management company. However, if an association has significant responsibilities, the members and directors will often consider hiring a property manager to run the day to day affairs of the association.
Can the association enforce the Covenants?
Generally, the association acts in the benefit of the residents to enforce covenants through communications with residents. To the extent that a phone call or letter does not resolve a covenant violation, the association can act for the benefit of the neighborhood. However, whether or not the association is allowed to file suit to enforce covenants is dependent on the specific covenants and will vary from one neighborhood to another. Individual homeowners generally have the right to directly enforce most covenants and can cooperate with the association to do so.
What can the homeowners association do to improve the appearance of the neighborhood?
The homeowners association can spend its money to improve and to beautify any real estate which it owns. If the association wishes to maintain property owned by the developer, the SID, or any third party, it should obtain written permission in the form of an easement, to go onto that property.
Covenants and Enforcement
–When you closed on your house you agreed to the covenants as currently written
–Covenants are in place to protect your investment by maintaining a specific level of uniformity between properties
–Covenants are available for review on our website
–A change to the covenants requires a recognized signature by 60% of the Lot owners
–Typical issues: trash cans out front of the house, broken down vehicles in driveways, campers and boats in driveways too long
–Items requiring approval: fences, pools, any item requiring a foundation and building permit, painting of your house
- Have you talked to the violator politely yourself?
- In most cases PCHOA is not aware of specific violations until a neighbor brings them to light. Please continue to bring them to our attention and document the violation with dated photos
What happens after a violation is received by HOA?
– Confirm violation
– Send letter to neighbor outlining the violation and request it be fixed
– If need be, we escalate the violation to the developer/lawyer for resolution