WHAT YOUR NEIGHBORHOOD SAYS ABOUT YOU

Have you ever looked around and noticed your neighbor’s unkept lawn or trash can that doesn’t seem to get put away?   According to a recent US housing report, approximately 10% of the value of your home is correlated to your neighborhood.  For easy math, if your home is valued at $300,000; that unsavory neighbor is costing you about $30,000.  This may not sound like a big deal now, but when you decide to take a second loan out to pay for your kid’s college, the bank looks at your debt to equity ratio and may disqualify you.  All as a result of your neighbor who can’t make the effort to put his trash can away.

Subdivisions that are managed by a homeowners association is there to ensure that everyone abides by basic and common rules.  These rules are generally called covenants or CCRs.  As you can image, some were written well and some are significantly out of touch.  Regardless, every homeowner must comply with those rules and many do.  Unfortunately, there are those few who are chronic abusers and those few are the ones that influence what your HOA says about you. 

Covenants, Conditions & Restrictions: The Unspoken Rule

The covenants are legally binding.  They hold all homeowners to a certain set of behaviors.  For example, covenants may say a homeowner needs to store recreational vehicles behind a fence or to maintain a yard in an acceptable condition.  These covenants ensure a standard of living that is shared by every homeowner in their subdivision.  It is these standards that contribute to defining a subdivision’s culture. 

Subdivisions Are Designed Communities

Furthermore, a subdivision’s culture is defined by certain factors unique to it.  An entrance into a subdivision is used in the same manner as a way to identify a city.  In addition, subdivisions are defined by their amenities, the layout of the subdivision, the choice of shrubs, flowers and trees used, the amount of front lawn and driveway space, the placement of ponds, pools, fountains or whether the back yard is fenced.  Collectively, each subdivision is defined by these amenities.

The HOA Board: High Accountability for Zero Pay

A volunteer, unpaid, board is elected to ensure the governance of the association, to ensure the proper function and operation of the association, and to oversee the maintenance and preservation of those common amenities.  These individuals represent the voice of all members of their association.  As with any leadership, their influence impacts the culture with the people they govern.  Enforcement or better yet, the process of enforcement can be rather strict or relaxed depending on the leadership style.  Many Board members lack the necessary skills to enforce or the resources to navigate the inherent social dialog by a collective body of owners. 

An HOA Board is the catalyst to the collective culture within their subdivision; in other words, whether homeowners follow the rules.  A Board’s personality can dictate and directly influence whether homeowners are engaged in their community.

The Percentage of Those Who Comply: Measuring a Subdivision’s Culture

A subdivision’s culture can be measured by the degree in which homeowners comply with their covenants.  There are those homeowners who do not bring the same awareness to shared living, so the general rule is 10%.  That is, about 10% of a subdivision fails to understand the value of following the rules.  Unfortunately, for those subdivisions with a higher percentage of noncompliance there is a higher correlation to lower property values as a result of not abiding by the covenants.  The good news is the vast majority of owners understand the basics of living in a shared community.

Home-Ownership v. Renter Mentality

There is a fundamental difference between renters and owners.  Those who own their homes are at a greater risk of losing personal property; whereas, renters have less to lose. Renters, therefore, are less likely to have a stake in their subdivision and subsequently fail to comply with the shared behavior of owners. When living in a subdivision with a high percentage of owners, the difference between the groups can be seen in how each relates to their space and to their environment.  Owners plan to stay, renters live temporarily.

Homeowner associations present a complex and dynamic scenario.  The present culture is the product of those who chose to live within a subdivision and who have acquired the knowledge, beliefs, morals, laws, customs, and habits.  If your subdivision is struggling, chances are your community culture has not been addressed adequately by your HOA Board.  Ignorance to our fellow neighbors is, sadly, a sign of today’s lifestyle.  If your subdivision needs help, please contact MGM Management at (208) 846-9189 or visit www.gomgm.com for more information.

This article is provided for informational purposes only. It is not intended as, and does not constitute, legal advice. While all content is believed to be correct within the scope of its purposes when written, it may be incomplete and and/or the relevant law may have changed. The information is not intended to comprehensively cover any subject, does not cover a number of related matters, and does not cover any person or entity's particular situation. As such, it is not reasonable for anyone to rely upon the information herein with respect to any particular legal matter. Rather, readers are encouraged to retain a licensed attorney to provide individualize and current legal advice.