What Home Buyers Should Know About HOA’s

It’s Possible to Have More than One HOA

Some neighborhoods in Santa Clarita Valley have more than one homeowner’s association (HOA)! It’s also important not to confuse HOA dues with Mello Roos taxes or other hidden bond assessments, as they are entirely separate. In some areas, homeowners may be responsible for both monthly HOA dues and annual Mello Roos taxes.

How Much Do HOA’s Cost?

HOA fees can vary significantly from neighborhood to neighborhood, ranging from minimal to quite expensive. For example, in the Valencia Northpark community, the HOA fee in late 2024 is just $59 per month, which offers access to three swimming pools, tennis courts, basketball courts, and hot tubs—a small price for such amenities. On the other hand, some neighborhoods charge over $400 per month. While higher fees might suggest more benefits, this isn’t always the case.

CAUTION: When reviewing real estate listings, never assume the HOA fee listed is accurate. Always verify the exact amount before making an offer to buy.

What are the Benefits of Homeowner’s Associations?

The key advantages of living in an HOA managed neighborhood include:

• Higher Property Values: HOAs help maintain property values by enforcing upkeep standards. This means neighborhoods generally stay well-maintained as they age, preventing issues like broken-down cars in driveways or overgrown yards. Homeowners are typically required to maintain all visible aspects of their property.
• Community Amenities: Many HOAs provide recreational facilities for residents and their guests, such as pools, spas, gyms, lakes, and golf courses. Some neighborhoods even offer security services.
• Exterior Maintenance: In some cases, especially in condo or townhome complexes, the HOA may also maintain the exterior of homes.

Note: While many HOAs include shared recreational amenities, not all do. Some HOAs provide only shared common areas, and residents may still need to pay a monthly fee without access to extras like pools or gyms.

Be Cautious of Homeowner’s Associations

HOAs have significant legal authority over their members. Depending on the rules and regulations, they can place liens on properties or take legal action to enforce compliance.

While many HOA rules are straightforward, there can be unexpected surprises. For example, a friend of ours found out after moving in that he couldn’t park his company truck with signage on the street. Another client had to remove a tree from her front yard because it didn’t comply with HOA regulations. Essentially, anything visible from the outside of your home, from landscaping to exterior modifications, is subject to HOA approval. Front yards must be well-maintained, and no weeds are allowed!

HOA’s can Be Threatening or Passive

Some homeowners dislike their HOAs for being overly strict, while others appreciate the structure they provide. Some HOAs are more laid-back, but others can be very rigid. Before purchasing a home in an HOA community, we recommend talking to a few neighbors to get their perspective and asking about their experiences. You should also receive a copy of the HOA’s rules, regulations, and guidelines before finalizing your purchase. In Valencia Summit, for example, there is a comprehensive set of rules, but generally, as long as residents use common sense and show respect for their neighbors, issues rarely arise.

Even if you’re not a fan of the rules or monthly fees, you’ll likely appreciate the boost to your home’s value when it’s time to sell. Some older neighborhoods in Valencia still look fantastic, thanks to the upkeep enforced by their HOAs. While some associations can be challenging to deal with, most homeowners find that the benefits are worth it in the long run.

Final Thoughts on HOA’s

Homeowners associations can be beneficial for maintaining property values and keeping common areas in great shape, but they can also come with costs and inconveniences. For example, while a homeowner might feel their house doesn’t need repainting for another year or two, the HOA might require it sooner. If you prefer not to be told how to manage your property, consider looking for a home in a neighborhood with a more relaxed HOA, or one that doesn’t have one at all. On the other hand, if you don’t mind following established rules, you’ll likely have little to worry about.

It’s crucial for homebuyers to understand HOAs upfront to avoid surprises or disappointments later. In some cases, you may be able to review the HOA’s rules and regulations before making an offer, though be prepared for some legal jargon.

We always encourage our prospective buyers to ask plenty of questions before submitting an offer. The goal is to ensure you’re fully prepared for the home buying process and avoid any unexpected costs or complications. We hope this post has been helpful in shedding light on what homebuyers should know about homeowners associations.