Information on HOA Laws and Fees When Buying Crested Butte Home
When buying your Crested Butte home it is very likely that’ll end up dealing with an HOA, also known as Home Owners Association. Typically all condos and townhomes and many single-family homes are a part of an HOA. If you’ve never had to deal with an HOA before you might be curious about what it all means. Here’s lots of information on HOA laws and fees when buying Crested Butte home.
What Documents and Laws Govern an HOA?
Articles of Incorporation establish the legal basis of the association. The HOA files the Articles of Incorporation with the Colorado Secretary of State’s Office. The associations are typically in the form of a non-profit corporation. A plat map shows the defined boundaries of the various lots within the development or subdivision. It shows the association’s title with regard to the common areas as well. This is recorded at the county recorder’s office where the property is located. CC&Rs (Covenants, Conditions, and Restrictions), sometimes referred to as Declarations, contain the deed restrictions to the property and the need for the creation of the association. They are also recorded at the county recorder’s office in the county where the property is located. Bylaws are the rules concerning the management and administration of the association. Resolutions, Rules and Regulations are additional restrictions for the community members that the association can adopt.
Federal laws that govern HOAs include the Fair Housing Act, Internal Revenue Code, the Americans with Disabilities Act, and the Fair Debt Collection Practices Act. This lays out what the HOA can and can’t do. There are state laws specific to common-interest communities such as condos, cooperatives, and homeowner associations. There may also be some additional state laws of concern, such as the State Fair Housing Laws and the state Fair Debt Collection Practices Act. Local municipal ordinances that may affect HOA and HOA members include building codes, animal control, and parking restrictions. Additional legal authority may impact an association, such as court case law, standards set by and for professionals, and certain lender requirements.
Expect that there will be an HOA fee for your condo, townhome and many single-family homes. These fees are based on years of actual costs, and a budget and financials will be available to you to review. Some HOAs have professional managers, and the fees will cover the management expense of this service. Sometimes homeowners who volunteer to sit on the board manage the HOA.
Typically HOAs have a subcontracted property manager who oversees all aspects of the physical management. They oversee maintenance throughout the year and coordinate subcontractors as well. Most HOAs are well run and have a sufficient capital reserve fund. They will also have a planned maintenance schedule that goes out for many years. However, other HOAs may not be able to get fees increased or assessments approved. This means they will continue to see deterioration to facilities, and consequently property values will suffer.
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