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What are homeowners associations?

Homeowners Associations are an important part of Residential Real Estate laws. It is a governing body that looks after the common interests of the residents living in a particular area. The association has the right to set rules and regulations for people living in a residential area. Homeowners associations require regular funding from the residents. These funds may be used for the betterment of the community, for example, developmental projects or security.

Certain communities might implement rules and regulations to make their residential area more attractive. The association has the right to ask residents to keep their houses well maintained and attractive, which helps boost property values as well. Small details like house color, height or lawn size may also be dictated by the homeowners association.

The governing board of a homeowners association is made up of the residents of the neighborhood. These residents have the right to vote for any changes or regulations within the neighborhood. Funding required by the association is generated through monthly or yearly payments by the residents. These funds are used for developmental projects, or to pay for communal resources. If the association does not have enough funds for a particular project, it has the right to ask residents for funds.

Disputes between residents and the homeowners association are quite common. Most of these disputes are related to monthly dues. Some homeowners might feel that the association does not spend the money wisely, which leads to a decrease in reserves. Homeowners associations usually claim that their demands for more funding are beneficial for the community. In some cases, disputes are merely misunderstandings, and can be easily resolved.

If you are a resident who feels your homeowners association is not managed properly and does not spend wisely, you may be able to file a lawsuit. It is advisable to contact an attorney, who will assess your situation and help you file a complaint.

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