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Frequently Asked Questions about Homeowners’ Associations |
I don’t remember joining an association, why do you think I’m a member?
The deed restrictions that apply to all of the lots in your subdivision state
that by accepting a deed to property, all lot owners become members of the
association. You did not need to “join” to become a member. You will be a member
for as long as you own your home, and when you sell it, the person who buys from
you will become a member.
My house is in the name of both my spouse and me. Are we both members?
Yes. However, all assessments and costs of being in the association, and all
voting rights, are determined by lot, not by member, so a lot that is owned by 5
members, for example, will not pay any more, or have more votes in the
association, than a lot owned by 1 member.
Votes? Do I have a vote in how and what the Association does?
Yes, and no. For so long as the developer of your subdivision continues to own
lots and sell homes in the subdivision, the deed restrictions provide that the
developer will control the association. No meetings are required, and no votes
conducted, until the Association is “turned over” to the homeowners. That
happens at a formal meeting, scheduled by the developer, shortly after the
developer finishes selling lots/homes in your subdivision. Once the association
is turned over, you and your neighbors will control the association, and each
lot will have one vote in all matters submitted to the association for a vote.
What exactly does the Association do, and how does PSAM fit in?
The Association is responsible for making sure that all “common areas” in the
subdivision are cared for and insured, and that all bills are paid. Common areas
usually are portions of a subdivision, which are not owned by individual lot
owners, and are used for the mutual benefit of everyone – such as entryways and
open spaces. Bills include taxes for land owned by the Association, the costs of
cutting the grass, planting and taking care of other landscaping in common
areas, electric and water bills if there is lighting or irrigation in the common
areas, etc. PSAM stands for Professional Subdivision and Association Managers,
Ltd. PSAM is a privately owned company which has been hired by your subdivision
developer to manage the affairs of the Association until it gets turned over to
the homeowners. PSAM hires contractors to maintain the common areas, pays the
bills, and administers the deed restrictions.
Administers deed restrictions? What does that mean?
All lots in your subdivision are subject to deed restrictions which affect what
can and cannot be done on any individual lot. For example, the deed restrictions
state that lots can only be used for single-family residential purposes – that
means no one can build an apartment, retail store, office building, etc. on any
lot. Only single-family homes are permitted. There are many restrictions,
affecting whether and where fences can be built, what can be stored outside of
homes, whether outdoor antennae are permitted, whether you can have an
above-ground swimming pool, whether you can raise farm animals, and many other
things too. PSAM administers the restrictions, meaning several things. First, it
means that if someone does something that is not permitted by the restrictions,
PSAM enforces the restrictions. It also means that if something can only be done
with permission (such as fence and deck construction), PSAM reviews plans and
grants or denies permissions to do those things.
Wait a minute. I own my home. You mean I need someone else’s permission to build
a fence, or a deck?
Yes, that’s right. The purpose of the restrictions is to preserve the quality of
the subdivision as a whole. That means making sure that there is a general
consistency in the quality and appearance of the improvements and structures
that are built in the subdivision. Would you like to live next to someone who
installs a chain-link fence painted bright pink along your property line? And
even if you like bright pink chain-link, would you like it if that fence were
next to another neighbor’s yellow and blue picket fence? Your developer
determined that it is better to regulate what can and cannot be built, to
protect everyone from such a situation. In some subdivisions, fences are
completely prohibited. In others, they are simply restricted, meaning, for
example, that only certain fence materials may be used, or that a common color
scheme must be met, or even that fences can only be built of a certain size,
style or in certain locations. Your deed restrictions may indicate what the
general fence guidelines are, but all improvements like fences and decks must be
approved in writing before they are built.
How do I get plans approved? Does it cost me anything to get plans approved?
Plans are to be submitted to PSAM, in duplicate, showing exactly what you are
planning to do. We need to see a site plan showing us your whole lot and where
you plan on building; a materials list that tells us what materials will be
used; a color sheet showing all colors to be used; and a picture or drawing of
what the improvement(s) will look like when finished. All plans and elevations
are to be dimensioned. If you are unsure, call PSAM and we’ll help you
understand what is needed. The approval process generally takes about two (2)
weeks, and there is a $20.00 charge for plan review. If you need a faster
review, expedited handling of your application is available for $45.00.
Click here
for application form and instructions.
How are deed restriction violations handled?
PSAM does not consider itself to be the “deed restriction police.” We are in
your subdivision regularly and keep our eyes open for problem situations, but
usually we find out about violations as a result of complaints from residents in
the neighborhood. When we receive a complaint, we verify that the problem
exists, and if it is something that warrants enforcement, we contact the owner
of the property where the violation exists. Usually this is done in writing. We
ask the owner to voluntarily comply with the restrictions, but warn that we have
the right to take legal action if they don’t do so.
Click here to report a deed
restriction violation in your neighborhood.
Legal action? Isn’t that expensive? And do you really do that? …
Yes, yes, and yes. Sometimes, the only way to get a person to comply is to take
legal action. That means filing suit in county court, and we do it if we have
to. That is authorized by the deed restrictions and under Ohio common law. It is
expensive, but it is expensive to the person who has the violation, not to the
association. You see, the restrictions state that the costs of enforcement,
including attorney’s fees paid by the association, are the responsibility of the
person who violated the restrictions and made the enforcement action necessary.
Our letters to owners asking them to bring their properties into compliance with
the restrictions warn the owners that they will have to pay enforcement costs if
they don’t remove the violation.
… And what do you mean by something that “warrants enforcement”?
Not all complaints we receive result in enforcement actions. Sometimes, owners
of one property just don’t like what their neighbors are doing, and complain to
us about it. We only get involved if a clear violation exists. Even then, when
possible, we try to resolve problems before taking formal action. We encourage
neighbors to try to work out differences among themselves, but we’re there to
help if we’re needed.
How are the annual dues determined, and where does the money go?
Your homeowners’ association is an Ohio not-for-profit corporation, so the dues
you pay are determined according to what the actual costs of running the
association are expected to be. PSAM, together with your developer, estimates
what the total costs of taking care of all association responsibilities will be,
and then we divide that number by the number of lots in the subdivision. You pay
your share, just like all other lot owners, including the developer. Dues are
collected annually, and they include the estimated costs of maintaining the
common spaces (lawn, landscaping, and pond maintenance, etc.), utilities if
applicable, taxes, insurance, and PSAM’s management fee. Currently, PSAM’s
management fee reflected in your annual lot assessment is $1.50 per month for
each lot we manage – that’s $18.00 per year. Your dues are paid to the
association, and deposited into an association bank account. Bills are paid
directly from the association’s account.
Are there any other costs that I have to pay?
Under normal circumstances, no. There is a $50.00 fee due from the buyer when
you sell your house (that is a transfer fee, payable to PSAM, to cover PSAM’s
work in making changes in the association’s records for the new owners), and you
may incur interest or late charges if you don’t pay your annual dues on time.
There are other, limited circumstances under which special assessments could be
levied, but they are very unusual.
Interest? Late charges?
Your annual dues are payable within 30 days of the date on which you receive
your invoice. If you do not pay on time, a $25.00 late charge will be assessed,
and interest from the due date will accrue at the rate of ten percent (10%) per
year.
What happens to people who don’t pay their dues?
In addition to the late charge and interest, the association has the right to file suit, and/or to file a lien against the home of a person who does not pay his/her dues. If suit is filed or a lien taken, all of the costs of doing so have to be paid by the person who didn't pay the dues in the first place. PSAM believes that it is fundamentally unfair to allow some owners to get away with not paying their dues. It is unfair to all owners who do the right thing and pay their dues on time, and it is harmful to the subdivision as a whole. As a result, we will take all necessary actions, assessing interest and late fees on delinquent accounts up to and including legal action to collect dues, including dues for previous years. The least expensive alternative for every owner is to pay the dues and pay them on time.
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