HOA fees can be tricky

[Fernando]

You would think HOA would cover the painting of roof and exterior paint/upkeep.
Owner told me there wasn't enough funds to do that work so each home in PUD subdivision would "ordered" to pay about $10,000 supplemental fee to cover those costs.
Makes me wonder if HOA can be comparable with other subdivisions.
In any case best to use comps in same subdivision.

 

[Terrel L. Shields]

Makes me wonder if HOA can be comparable with other subdivisions.

HOA suck putty balls. My former assistant had to pay for her own painting and afterwards the residents staged a revolt and refused to pay dues...became a real mess. Another one I know is trying to form an HOA to get sewer in an area where septic density is too high and the state is about to step in and force all of them to cough up $20k or more.

 

[ZZGAMAZZ]

If obtaining HOA fees from the borrower, always prudent to ask about any supplemental fees in addition to the routine monthly fee. (Although way too often the lender comes back with a condition because the Prelim doesn't match the borrower's info, even if he or she provides the monthly HOA bill for appraiser to review. Another condition/yukkkk.

 

[sputnam]

I don't know if it's still common practice but, a lot of developers would set HOA fees artificially low to attract buyers. Years down the road, when the developer was long gone and didn't care, and the roof was failing then, HOAs do special assessments. It's one of the hazards of buying property that has an HOA with mandatory dues.

 

[Fernando]

I don't know if it's still common practice but, a lot of developers would set HOA fees artificially low to attract buyers. Years down the road, when the developer was long gone and didn't care, and the roof was failing then, HOAs do special assessments. It's one of the hazards of buying property that has an HOA with mandatory dues.

In new subdivisions, developers set the HOA fees. Don't know if realistic. Developers say it may go down as more homes are sold. We don't know.