When you’re in charge of managing the behavior, design, and structure of a neighborhood, you have a huge responsibility. Not only does a homeowner’s association (HOA) need to be clearly organized and carefully planned, but it also needs to communicate effectively with each homeowner in the neighborhood. Homeowner’s associations ensure that neighborhood members have safe, beautiful, and fun places to live. These organizations work to ensure that homeowners in the area are able to enjoy a relaxing and comfortable space to call home. Whether you are in the initial stages of creating the HOA or already have established the HOA, there are a few steps you need to follow. Keep in mind that a real estate attorney is going to be your most valuable asset during this time, as they can carefully guide you through the steps and process of creating and maintaining an effective HOA.
1. Follow state law
One of the first steps you’ll need to take is developing an understanding of both local and state law in regards to creating a homeowner’s association. Whether you are establishing or operating an HOA in an existing neighborhood or you’re preparing to start one in a developing area, make sure you understand exactly what guidelines you need to follow in order to meet your state’s guidelines for these types of organizations. Your HOA is something that should enhance your community and make a difference in your neighborhood, but you can’t do that until you’re state-compliant.
2. Create contracts
Whether you’re creating or operating a large or small organization, you’ll need to draft contracts for your HOA. These contracts will stipulate what your policies are for neighborhood behavior, home appearance, and house maintenance. You’ll include fees for both membership and violation of terms. Contracts are important since they help ensure that each member of your HOA understands both the terms of membership, as well as what is expected of them. Additionally, contracts are an effective way to let members know what amenities they will enjoy as members.
3. Choose board members
It’s important to choose board members you can count on. Ideally, board members should demonstrate strong leadership skills and a solid understanding of local community history and events. Your board members are responsible for communicating with the neighborhood and implementing amenities designed to enhance life in your community. Additionally, you may choose to form committees as part of the creation and/or operation of your HOA; so make sure you choose responsible board members who are go-getters.
Whether you’re ready to launch your homeowner’s association or are involved in day-to-day operations of an existing HOA, call to schedule a meeting with your real estate attorney. The right attorney can make an incredible difference in ensuring that you’re able to abide by the law and create effective contracts. Additionally, your lawyer can guide you in how to select board members and manage your HOA effectively while complying with legal guidelines. Call today to schedule your consultation.