If you move into a subdivision or a planned-unit development, there is a good chance you’ll also move into a homeowners association. Associations operate like mini-governments, setting standards for houses, collecting institution dues from residents and fining owners who paint their own house the wrong color or construct also large. Some owners think the rigorous design standards improve their house values; additional occupants chafe at the restrictions on what they can do with their houses.

History

Homeowners associations developed from the second half of the 20th century, the Findlaw website states, as Americans moved in growing numbers to suburban communities. A few subdivisions had restrictive covenants about the look of homes and front lawns and a number of them eventually embraced the idea of having a plank of homeowners administer the rules.

Function

Homeowners associations set rules for the look and use of your home–if institution members can lease their homes out, for instance–and nice owners who violate them, the Nolo legal site states. The institution handles the maintenance of the public areas, such as swimming pools, tennis courts and private roads, and fees owners annual fees to cover maintenance.

Benefits

By paying to the community pool and other amenities, CNN states, associations provide benefits for residents that they might not have the ability to manage by themselves. In addition, by maintaining the appearance of the area, associations keep property values high.

Drawbacks

Many homeowners eventually become frustrated when they can’t plant their yard or paint their house the way they need due to the covenants. Some associations, CNN reports, have fined owners for dangling the wrong color drapes, decorating for unapproved holidays or flying the Stars and Stripes when there is a no-flag coverage in effect. Many homeowners have complained that they have been penalized over a minor infraction because one of their neighbors was feuding with them.

Considerations

Before you move into a homeowners association-run development, CNN recommends, decide if you’re comfortable with having to submit many home choices to somebody else’s approval. Then research the specific rules for the institution and see if they’re ones you can live with. Also figure out the cost of the institution fees and choose whether you can afford them.

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