For Those Who Are Confused: A Neighborhood Association is Not an HOA

 


 

I have seen it happen a number of times: people assume a Neighborhood Association is the same thing as a Homeowners Association (HOA). But nothing could be further from the truth.

An NA and an HOA are different in style, form and function, not to mention how they are established and the laws that make an HOAs possible.

Perhaps no one understands that better than Sue Carter, an experienced real estate agent and broker in Republic, Missouri, who has been selling real estate for over 21 years, including homes in and out of local HOAs.

I first turned to Carter because my challenge was finding contact information for HOAs in my community. No one kept records of them: not the city, not the police, not the fire department. The one or two I knew about did not seem to be active, and the contact I had would never respond. So, where to start?

"I have sold new construction for 12 years, in 25 subdivisions, representing 22 different builders. I worked with developers and attorneys on CCRs and assignments of HOAs for much of that time. I stepped out of that world in 2015, but it’s forever etched into my mind," said Carter.

And honestly, it should be etched in the mind of anyone who has passed the test and gotten a license to sell real estate. The differences are important to know.

No one person can create an HOA except for the original developer. However, a group of neighbors can create a Neighborhood Association. Sometimes, in cities, the local government works with residents to create formal Neighborhood Associations for engagement, communication, and even social interaction.

Before a new development (subdivision) is given a final plat approval by the city or county, the developer is required to provide CCRs (covenants, conditions, and restrictions), which in most cases specify the existence (or non-existence) of an HOA and clear-cut requirements for relinquishing developer rights to the HOA. Typically it is when 80% of the lots are sold in the development. An association is created with a President, VP, Secretary, Treasurer and general members and it outlines who has what voting rights.

The best place to find HOA contact information is at the title companies. 

Most of them have a contact list of whom dues are paid as new homeowners close on their properties. Other than that, the only other way is to contact people you know in different neighborhoods and ask them who to contact.

Many subdivisions only have CCRs and are not official HOAs because an HOA requires amenities, management of HOA funds, collection of payments, maintenance of amenities such as weekly pool service, trash provider contracts, etc., and, most importantly, a liability insurance policy in place. 

From my research, the only active HOAs in Republic are Valley Park, Shuyler Ridge, Island Green, Monte Cristo and The Cottages.

The neighborhoods with original CCRs but no active HOA are Century Place, Moonlight Meadows, Sandstone, Liberty Place, Stanton Estates, Woodland Hills Estates, Diamond View Estates, White Oak Estates, Stoney Creek Estates, Savannah Heights, and Woodman Estates.

MORE INFORMATION

Does this article make you interested in taking the Engaged Neighbor pledge? Five categories and 20 principles to guide you toward becoming an engaged neighbor. Sign the pledge online at http://engagedneighbor.com.

Contact the blog author, David L. Burton at dburton541@yahoo.com.

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