WHAT IS AN HOA?
There are three types of managed communities. All provide many services which are included in the monthly fees. All have boards that manage the community, usually with the help of a management company. All communities have varying amounts of “common property” (clubhouse, gym, pool, elevators, utilities) maintained by the board which all occupants can use. All communities are legal entities that are bound by Declarations, By-Laws and Rules that owners legally commit to obey when they purchase a unit. Boards can usually change Rules. Other documents require approval of the unit occupants/owners. The differences are explained briefly below.
Cooperative (coop): These are usually, but not always found in apartment buildings. The occupant of a unit does not own the unit. He or she only owns shares in the cooperative based on the size of the unit. All alterations to the unit interior must be approved by the board, technically even the wall paint color. The board or coop company pays real estate taxes which are included in the monthly fees. The board must approve any new occupant and can refuse a potential buyer (meaning the sale is cancelled) without an explanation.
Condominium (condo): The occupant usually owns only the interior of his or her home and can make any interior changes without board approval if the change does not affect a community system (sewer, etc.). The condo maintains the entire outside of the home, siding, roof, landscaping, etc. The occupant usually has very limited freedom to change the landscaping, because they do not own the land. Monthly maintenance fees generally are somewhat higher than HOA’s because the condo is taking care of more items. Real estate taxes tend to be lower.
Homeowner Association (HOA): Three Village Green is an HOA. The occupant owns the entire unit and the land the unit sits on plus a significant amount of property including the driveway. Every homeowner has a survey showing what land they own. The occupant has a lot of freedom to individualize landscaping and the home exterior. However, the board has “architectural control” of the home exterior and landscaping and significant changes must be approved. This is to maintain the overall appearance of the community. (Eight-foot high pink flamingos will be turned down.) Maintenance is less expensive than in condos but real estate taxes can be higher.
In all managed communities owners/occupants “give up” some freedom versus having a private home in exchange for having various maintenance taken care of, enjoying various amenities and living in a community that has a tailored, uniform appearance
There are three types of managed communities. All provide many services which are included in the monthly fees. All have boards that manage the community, usually with the help of a management company. All communities have varying amounts of “common property” (clubhouse, gym, pool, elevators, utilities) maintained by the board which all occupants can use. All communities are legal entities that are bound by Declarations, By-Laws and Rules that owners legally commit to obey when they purchase a unit. Boards can usually change Rules. Other documents require approval of the unit occupants/owners. The differences are explained briefly below.
Cooperative (coop): These are usually, but not always found in apartment buildings. The occupant of a unit does not own the unit. He or she only owns shares in the cooperative based on the size of the unit. All alterations to the unit interior must be approved by the board, technically even the wall paint color. The board or coop company pays real estate taxes which are included in the monthly fees. The board must approve any new occupant and can refuse a potential buyer (meaning the sale is cancelled) without an explanation.
Condominium (condo): The occupant usually owns only the interior of his or her home and can make any interior changes without board approval if the change does not affect a community system (sewer, etc.). The condo maintains the entire outside of the home, siding, roof, landscaping, etc. The occupant usually has very limited freedom to change the landscaping, because they do not own the land. Monthly maintenance fees generally are somewhat higher than HOA’s because the condo is taking care of more items. Real estate taxes tend to be lower.
Homeowner Association (HOA): Three Village Green is an HOA. The occupant owns the entire unit and the land the unit sits on plus a significant amount of property including the driveway. Every homeowner has a survey showing what land they own. The occupant has a lot of freedom to individualize landscaping and the home exterior. However, the board has “architectural control” of the home exterior and landscaping and significant changes must be approved. This is to maintain the overall appearance of the community. (Eight-foot high pink flamingos will be turned down.) Maintenance is less expensive than in condos but real estate taxes can be higher.
In all managed communities owners/occupants “give up” some freedom versus having a private home in exchange for having various maintenance taken care of, enjoying various amenities and living in a community that has a tailored, uniform appearance