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When you buy a house in a new subdivision or planned unit development, you may
be subject to a host of rules and regulations.
When you buy a good home in a new subdivision, common interest development
(CID), planned unit development (PUD), or co-op, chances are good that you also
automatically become a member of an exclusive club -- the homeowners'
association, whose members are the people who own homes in the same
development.
CC&Rs
The homeowners' association will probably exercise a lot of control over how
you use your property. Deeds to houses in new developments almost always
include restrictions on how the property can be used. Usually, these
restrictions, called covenants, conditions and restrictions (CC&Rs), put
decision-making rights in the hands of a homeowners' association. If you don't
understand something, ask for more information and seek legal advice if
necessary.
Some associations enforce every rule with the enthusiasm of a Marine drill
sergeant; others are run in a far more relaxed way. Most associations are very
sensitive to making decisions which will enhance the value of the houses.
Study the CC&Rs carefully to see if they're compatible with your lifestyle.
CC&Rs commonly limit the color or colors you can paint your house (often brown
or gray), the color of the curtains or blinds visible from the street (usually
white) and even the type of front yard landscaping you can do. Some even
require that garages facing the street be kept neat, insist that laundry be
dried indoors rather than hung on a line, prohibit basketball hoops in the
driveway or front yard and prohibit parking RVs or boats in the driveway.
These rules may be fairly general, but more often they are excruciatingly
detailed. As the list below shows, homeowners' associations often have power
over many aspects of everyday life.
Getting relief from overly restrictive CC&Rs after you move in isn't usually
easy. You'll likely have to submit an application (with fee) for a variance,
get your neighbors' permission and possibly go through a formal hearing. And if
you want to make a structural change, such as building a fence or adding a
room, you'll likely need formal permission from the association in addition to
complying with city zoning rules.
Maintenance Fees
Homeowners' associations can often assess mandatory fees for common property
maintenance, which can get expensive if the development has a pool, golf course
or other recreational facility. Many associations in housing developments let
their boards raise regular assessments up to 20% per year and levy additional
special assessments with no membership vote for a new roof or other capital
improvement. If you're on a tight budget, check the homeowners' association
membership fee and how easy it is for the board to increase the amount. Also,
if parts of the development have been occupied for a while, attend a
homeowners' association meeting and talk with the officers about financing and
other issues of concern.
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