Home Owner’s Associations are extremely common. They occur in condominium developments, townhouse developments, and even neighborhoods of single family homes. Basicly they are a set of rules that are recorded with the title to the property and that transfer when the property is sold. So when you buy a property that has a Home Owners Association, you are not just buying the property, you are also buying membership in the HOA.
Being of a positive nature, I want to start with the good aspects of belong to a HOA (Home Owner’s Associaiotn).
HOAs are ideal for the person who wants someone else to do exterior yardwork and maintenance, who likes the ammenities that often come with the HOA, and also someone who likes the idea that they can close the door, lock it, and go away knowing that the property will be cared for while he or she is gone.
My Mother is a perfect example. She’s in her 80’s and can not physically maintain a house. But she’s still capable and independent, so not ready for assisted living. She lives in a condominium complex here in Lake Oswego. I like the idea that she has neighbors close by who know and care about her. The lady across the hall happens to also be a nurse and she has a key to my Mom’s front door. It is a great comfort to me to know that my Mom has help 6 feet across the hall.
Now the downside to HOAs.
When you buy a property that has an HOA, your home inspection should not just be for the physical dwelling, it should also include the fitness of the HOA. Condition your purchase on reveiw of the Conditions, Covenants and Restrictions, reading the last 2 years notes from HOA meetings, a copy of the financil status of the HOA including review of the long-term reserve studies, a copy of the rules and regualtions, and any and all pertinent information.
The normal thought process when buying into an HOA is that you want to keep the cost down and so tend to be attracted to HOAs that have low monthly fees. This may be incorrect thinking. The HOA is likely responsible for long-term maintenance of some very expensive items such as roofs, decks, and swimming pools. If they are not collecting money to build up a savings account for these expensive items, then the HOA will have to cover these expenses with a special assessment. This is all too common!
In addition, HOAs often have expenses that a single family residence does not. Think about the parking lot through a normal condominium development. It will need to be re-paved, re-striped, and get annual snow and leaf removal.
You want to belong to an HOA with solid financial management that has performed a full study that projects for these future expenses and then collects money in the monthly HOA fees to build up the necessary reserves to meet these expenses.
If a large expense arrises that the HOA does not have money to do, those famous special assessments happen. I am aware of an HOA here in Lake Oswego that had a special assessment about 15 years ago that average $10,000 per unit. That same HOA, just last week, had a meeting of the unit owners and announced that a similar special assessment will be happening this year as well.
Be aware that there are actually insurance policies you can purchase to protect you from special assessments. I have a personal friend who owns such a policy. It costs her $10 per month for coverage up to $10,000. Seems like a good investment that is pretty cheap.
The other concern with HOAs is the possibility of lawsuit. There is a condominium complex here in Lake Oswego that was a 1950’s apartment building that was converted to condos in 2006. Since the conversion the complex has experienced extensive water problems. The HOA is now suing the developer who did the condo conversion. Banks will not lend on units in the complex until the lawsuit is settled. This means that condos can only be sold on private contract or with all cash. This severely limits the pool of capable buyers and is consequently suppressing the re-sale value for those trying to sell now.
The bottom line is that you need to know what you are doing if you want to buy a property that has an HOA. It really is the reason you should be working with a good Realtor.
Have a great day!
Dianne
There is such a panoply of amenities in Lake Oswego that Dianne and I have been talking about incorporating profiles of local favorites from time to time. I thought I’d begin with a very special person who I would be lost without… my local “dog-whisperer”, Valerie Pulley.
seems it has been the subject of pets, and dogs in particular. We all know what a Portuguese Water Dog is now, thanks to “Beau” at the White House. I know our own friend & blogging cohort, Ron Ares, wrote a post most recently about his own dog, Nyree (left), adopted by the Ares family to save her from becoming a casualty of foreclosure. I’ve seen pieces on local and national news about the amazing number of dogs that have been abandoned or taken to shelters as fallout from the current economy, and it is heartbreaking to consider.
Staffordshire Terrier, Fedore, is her pride & joy, I’ve been taking my crazy black Standard Schnauzer, Kato (right) , to Valerie for years, and she is the only one who can calm him down enough to let his toenails be clipped. Turns out others have noticed this talent as well, and dog owners from far and wide bring their “hard to handle” pets to Valerie for tender loving care. Valerie mentions that “Some dogs have been kicked out of every grooming salon in Portland for biting, scratching, and generally squirming and freaking out. They bring them to me because I am the only one they’ve found to be able to handle them.” I 
ask her why she thinks this is, and she says “I’m just not afraid of them, and I care about them.” She has been working in the Lake Oswego area for around 12 years now, spending some of her career at the Lake Oswego Dog Shoppe, and now is working for 
When looking for a new home and desiring easy care and potential community amenities such as pool, larger grounds, meeting space etc (without the responsibility of upkeep), most people will consider either a condo or a town home. Most also aren’t necessarily familiar with several relative factors important to the selection process, so I thought I’d highlight just a few for you here.
was the vision of Carl Halvorson (the man who Halvorson Island, the only private island in Oswego Lake, is named after). Developed in 1968, it is built on a dormant volcano, Mt. Sylvania. The population of Mt. Park fluctuates between 8,000 and 8.500 people meaning that just about 1 in 5 people who live in Lake Oswego live in Mt. Park. It also means that the 
Because the community was planned, and pretty much all built at once, there is a uniformity to the neighborhood with well-cared for lawns and the stately sweep of hillside streets. Pricing goes from a low of $139,900 for a condominium to a high of $699,950 for a 4 bedroom house. Being on a hill, many of the homes and condos have views of Mt. Hood and Portland. Be aware that not all homes in Mt. Park are in the Lake Oswego school district. About 25% of Mt. Park along the North side has Lake Oswego addresses but is in the attendance area for Portland Public Schools. Property values are higher for homes in the Lake Oswego school district.