You’re not just buying a home, you’re buying into an HOA with all the benefits and drawbacks that come with an HOA.
GOVERNING DOCUMENTS DECLARATION
A governing document that defines the homeowner’s rights, including division of ownership and protective standards/restrictions, creating the overall framework for operation and organization of the association.
A governing document that illustrates the details of running the association including general powers and duties of the board, procedures for member/board meetings and elections, and the voting rights of members.
ARTICLES OF INCORPORATION
A governing document that establishes the association as a corporation, and defines its basic powers and purpose.
RULES AND REGULATIONS
A governing document that elaborates on the Declarations, Articles, Bylaws, or Statutes, further defining standards, rights, and restrictions.
Most HOAs provide a yearly financial statement, or a `snapshot` of expenses paid out, and an overview of the HOAs current cash flow. Some HOAs will also provide a quarterly, or monthly financial statement. This is where you will find the HOA surplus cash. If the reserves are declining or not large enough to cover upcoming maintenance/improvements, this is an indicator of a future special assessment.
An overview of the HOAs upcoming costs and fees.
A list of the assessments charged to homeowners broken down by unit type. Assessments provide the income that pays for the maintenance and duties of the association.
HOAs have meeting minutes. This will be the first area that the HOA will address major projects that will affect the HOA fees or potential special assessments. This will also give you an idea of what is important to the active homeowners.