Private residential estates run by Homeowners Associations (HOAs) continue to burgeon across the world, and South Africa is no exception. Offering numerous benefits, such as security and any number of communal facilities such as parks, sports facilities and social events, it is easy to see why homeowners choose to live in one. 

Omar Kinnear, developer of ResidentPortal, a communication platform used by community schemes, notes that while many residents have a general understanding of how HOAs work, there are many others who don’t fully understand the facts and myths surrounding what an HOA is all about.

Kinnear describes five common myths surrounding HOAs.

HOAs Are All About Money
“It’s important to realise that benefits enjoyed by residents come at a cost,” he says.  “The funds collected by the HOA are used to maintain common areas like pools and courts, pay maintenance workers, and more. Properly run HOAs must also set aside emergency fund money for any unforeseen circumstances, such as property damage due to a storm.”

HOA Board members are responsible for deciding the budget. “If you’ve found the perfect home but notice high HOA levies, this isn’t always a negative sign,” he says. “Typically, higher fees mean there are more amenities and services that your community offers.

“On the other hand, very low fees could mean that your community wouldn’t have the funds to cover emergency damages or large-scale expenses. Always look into your fees and how your local HOA allocates their budget,” Kinnear advises.

Everything is up to the HOA Board
While HOAs are governed by a board of directors, this doesn’t mean that as a homeowner you don’t have any power at all.

“Although board members are elected by the community at large, everyone that’s a part of that community has a right to hear what’s going on in board meetings as well as a right to express their opinions,” he explains.

“Although certain meetings are private, such as when they pertain to sensitive issues surrounding specific homeowners, attending meetings and getting involved is a great way to ensure you have a more powerful impact on the decisions that are made within your community.”

All HOAs Are the Same
Not all HOAs are exactly the same. There are two types of HOAs, a registered, non-profit company (NPC) or a common law association, with is a voluntary association. Like an NPC, common law associations are governed by the HOA’s constitution.

Every NPC association has its own property manager, it’s own team of board members, and their own committees and volunteers. Each HOA community is responsible for their own decisions and environment.

“If you have a bad experience with one HOA, this doesn’t mean the next HOA will offer a similar experience”, says Kinnear. “A board that works well together and offers clear communication will be able to resolve issues and respond quickly and efficiently.”

Management companies replace Board Members
In many cases, board members choose to elect the services of a third-party management company.  These outside management companies exist to leverage technology and tools that streamline operations for homeowners associations; not to replace them.

“For example, perhaps an HOA wants a more efficient way to deal with violations or is hoping to make the accounting process less time-consuming. Whatever the case, these third-party services exist to make all responsibilities that fall under HOA jurisdiction easier to handle.”

HOA Rules Cannot Be Changed
Contrary to popular belief, the rules enforced by HOAs are not set in stone.

“You’ll find that many rules have been in governing documents for decades and their core purposes still hold true. However, there are some rules that may no longer make sense or rules that might be fairer for some residents than others.

“As a part of a community, it is within your right to raise concerns and make suggestions for a more fair, unified system. Property owners can submit a written request to amend or remove certain rules.”

As a general rule, any changes to estate conduct or building rules will be voted on in a general meeting.  He adds that diligent board members also take the time to periodically review their rules to ensure that everything is up to par.

Kinnear concludes:  “Most problems arise in HOAs when residents don’t fully understand how these communities are run. Unlike Sectional Title Schemes, which are governed by the Sectional Titles Act, HOAs are run by the Companies Act.

“If owners want to get more involved, by volunteering to sit on the Board, for example, it is advisable for that person to familiarise themselves not only with the Companies Act, but also with the estate’s Memorandum of Association, which sets out the way their particular estate must be run.”

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