A homeowners association (or “HOA”) is an organization of owners of real property that work together to achieve certain common ends. In Utah, a homeowners association is commonly a corporation and the proper documents must be filed with the state. The owners of real property in a homeowners association, whether they have town homes, twin homes, condominiums or single family residences, contribute monthly dues to the association to pay for common expenses such as insurance, grounds keeping and to maintain amenities such as swimming pools. A community’s Covenants, Conditions & Restrictions (or “CC&R;’s”) will generally outline the manner in which the homeowners association will operate.
COMMON ISSUES WITH HOMEOWNERS ASSOCIATION
HANDLING ISSUES WITH HOMEOWNERS ASSOCIATIONS
Common issues that can arise in homeowners associations include disputes over governance and the finances of the homeowners associations. Governance issues often arise due to the number of associations run by members who either do not understand their legal rights and obligations or may choose to pursue a course of action that oppresses other homeowners.
Financial issues often surface due to mismanagement which results in the homeowners association being underfunded. Lack of proper funding can also be due to the failures of the original developer to properly establish the homeowners association on sound financial footing.
Reviewing the CC&R;’s is often the place to begin when handling issues with homeowners associations. It is not uncommon for issues to arise specifically due to a failure of those managing the homeowners association to follow its own stated rules. When this occurs, the attorneys at Whiting & Jardine can help you determine whether negotiations or litigation is the proper course of action.