There used to be a particular myth that social homes were for people on low incomes or people in need. For more information on how we allocate our homes see our Allocations and Lettings Policy. There is a shortage of affordable homes in the UK so Housing Associations are now an attractive option for many people looking to put roots down somewhere, either through renting a home or buying through a Housing Association.
To rent a home with a Housing Association you can sometimes make a direct application. For example, we list a portion of our homes for rent on our website enabling anyone to apply for a house directly. Here at Accent, we offer our rental properties both ways, but the majority are available through Choice Based letting schemes.
You may have heard of us through a local authority choice-based scheme or apply with us directly. Yes, Housing Associations are different as they are independent of councils and the government. However, in most areas, Local Authorities will manage the allocation of social housing, so most Housing Association residents are referred via their local council.
Due to the cost of buying a property in the UK, many people now find it almost impossible to get on the property ladder. Some Housing Associations now offer a portion of their housing for people to buy, usually through a shared ownership scheme. These schemes give more people the chance to own their own home, especially younger people.
Accent is one such Housing Association offering homes to buy as part of a shared ownership scheme. You can read much more about Accent , who we are and what we do on our website but if you have any further questions about how we operate or questions about renting and buying a home with us, please contact us.
Find the answers, plus more in this blog. What Is A Housing Association? No matter the size, or location, most Housing Associations work in a simar way. The HOA should be able to provide such a list. Ask, too, if any special assessments are planned in the future. Note that economies of scale may mean that special assessments for a certain capital expense may be smaller in HOAs that have many members and higher in smaller HOAs, where a similar expense will have fewer homeowners to fund it.
When contemplating a property purchase in a planned development, you'll of course factor the impact of its HOA dues into your overall finances. So, too, will prospective mortgage lenders. As a result, you may wrestle with vexing tradeoffs as you decide among properties. Higher HOA fees could leave you with a smaller approved amount to spend on your house compared with choosing an alternative property with low or no fees.
Interestingly, the presence of fees doesn't necessarily reduce the value of a property; if anything, there's evidence of the opposite effect. Your prospective lender can provide the mortgage-payment figure, and you should already have the property-tax and HOA-fee numbers.
Alternatively, many online mortgage calculators, including the one we linked to above, also allow you to request quotes from mortgage lenders on rates and maximum approved amounts. Since the rules and regulations of any particular HOA may be unique, don't rely on second-hand information or past experience at other developments to learn what an HOA's rules and covenants are. Be sure to check if the document is up-to-date before you proceed too far into the buying process.
You could find you're restricted in more ways than you might assume. If environmentally friendly living is a personal priority, check the HOA's green provisions, beginning with what can be planted around your home, and how that vegetation may be maintained. For example, some HOAs do not allow xeriscaping, an environmentally friendly form of landscaping for arid climates, and may limit the size and composition of any garden you plant.
The rules may also dictate the use of particular fertilizers, pesticides, or sprinkler systems to maintain the yard and ban the likes of compost piles and solar panels. Check for any language that might prevent you from, or even just complicate, renting out your property.
As in any community, disagreements arise within a planned development, sometimes over certain residents bending or breaking the rules. Before you buy, explore how rules are set and enforced and what penalties are imposed against rule-breakers. Sanctions can be strict.
Ask about the process for resolving any conflicts, as well as how the HOA manages additions to or amending the rules. Request a list or other accounting of conflicts and rule violations the association has had to resolve. Be sure to check for any past, present, or pending lawsuits in which the HOA is involved. Also, review the outcome of any such cases. Since the association essentially serves as a hyper-local government for the community, it pays to look into who runs it and how well those people function together.
It's very common for HOAs to be overseen by community residents who hold their positions as volunteers and are elected by association members. However, some associations are entirely managed professionally. If a private company manages the HOA, investigate its reputation before you buy. If the HOA has some employees, or companies to which it contracts out tasks, ask about these entities and the work they do.
How collegially does the board function? Are differences in opinion usually handled civilly and constructively? Be alert for indications of frequent, even perpetual, drama. As with some other governing bodies, HOAs can be hampered by egotism, power plays, and petty politics.
Schedule time to speak with the HOA president, to get a sense of whether you want this person making decisions on your behalf about the development. Ask the president, too, about interest among residents in serving on the board: Is there high motivation to do so, or relative indifference? This conversation may also motivate you or not to serve on the board yourself one day, a move that would require getting elected and giving up some free time for your new responsibilities.
Failure to ask about these problems in a timely way could result in you inheriting them when you take possession of the property. Some potential issues may be obvious, such as dead or overgrown landscaping or flaking paint. Conversely, has the owner made exterior improvements or other changes to the property without getting HOA approval?
If these changes are not in compliance with the rules, what could happen to you if you owned the property? You may be able to force the owner to fix the problems as part of the sale agreement or provide cash at closing. As with the ownership of property, insurance provisions within a planned development can be divided, too, with the HOA covering some perils or areas and the homeowner responsible for others.
These are often mandated by state law. In Florida, for example, a condominium HOA must insure all common property, which includes every part of the building up to a unit's unfinished drywall. Meanwhile, the homeowner is responsible for insuring all personal property within their unit, including appliances, flooring, cabinetry, window treatments, and the like.
Check the law for the state you'll be living in to for the precise division of requirements. Check whether the HOA provides additional coverage as a perk for owning within the development. Living in a planned development—and being governed in part by the rules of an HOA—can be a mixed blessing.
It offers the prospect of exchanging some control over your home for the reduced responsibilities of maintaining it, and for the benefit of enjoying shared amenities and security. It can, however, also trade the diverse look of a typical neighborhood for a more uniform appearance, albeit one with a lower chance of a neighbor's decorating taste or sloppy maintenance habits becoming a problem for you.
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