There is no property that exists that is completely unencumbered. This lien gives the HOA the authority to charge the assessment, and, to foreclose at some point, on that lien on your property if you don’t pay what is due.Įven if you don’t have an HOA, I think it’s good to know that there is NO such thing as truly private property. It creates a continuous lien on your property. If you purchase a home or land in this kind of community and take title to it, you’re obligated to pay the assessment. If it’s been written properly, that declaration creates an “Assessment Lien” with a covenant condition contained within it, which is important because that is what gives it the legal authority to tax. Q: How does an HOA get the authority to enforce its restrictions and charge an assessment? Does it own part of my property?Ī: When the community is first created and the land is developed, a “declaration of covenants and restrictions” is recorded. Structurally, the HOA itself is an organization that is incorporated under the state rules of a nonprofit, and, in Colorado, they’re also subject to CCIOA (the “ Colorado Common Interest Ownership Act,” pronounced “ Kiowa“), which are the parts of the state law that regulates Homeowner’s Associations. (Note: one big difference between an HOA and a true government is that an HOA is usually run by unpaid volunteers.) The purpose of the private government is to manage the common interest of the property owners who live within the boundaries of that community. Similar to a public government, that board then collects “taxes” and saves the money in a public fund to be allocated for the common good of the citizens. Just like a public government where people in a community elect representatives to govern themselves, HOAs do the same thing: instead of a City Council, they elect a Board of Directors. In the HOA world, we call this tax either “dues” or an “assessment” (“dues” is the term used most commonly, but “assessment” is actually the correct term). We hope you find his answers helpful.] Q: First things first: what is a Home Owners Association, exactly, and how is it structured?Ī: Homeowner’s Associations (“HOAs”) are, essentially, a “private” government-an organization that has the legal authority to tax. To answer some of those questions, we asked Chuck to share some insight on how HOAs and Covenants work, how they can be beneficial for a home owner, and whether buying into a community with an HOA is right for you.

We’ve found, over the years, that when our clients are in the process of looking for land to build on, sometimes we hear questions about buying a lot in a covenant-controlled community or a neighborhood with a Homeowner’s Association. [This is a guest blog post from Chuck Fowler, who has helped create and manage several of Colorado Springs’ most prestigious covenant-protected communities, such as Flying Horse, Pine Creek, Cedar Heights, and Parkside at Mountain Shadows.

Hoa covenants versus guidelines