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Published by mapman151, 2018-07-27 17:33:45

Chapter 11_Zoning_101_7_26_2018_Paperback_Flip_Neat

ZONING 101










CHAPTER ELEVEN


Homeowners’ Associations


















































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ZONING 101


Homeowners’ Association

(HOA) It is important to understand the
difference between Zoning
HOAs are private associations Regulations, Deed Restrictions
for marketing, managing, and and Homeowners Association
selling homes and lots in a (HOA) Covenants and Restrictions.
subdivision. A HOA grants the Generally, the strictest applies.
For example, if the HOA allows a
developer privileged voting
shed to be located within 5’ of the
rights in governing the lot line, but the Zoning
association until enough requirement is 10’, the Zoning
property units are sold, while requirement applies. Conversely,
the opposite is true.
allowing the developer to

eventually exit financial and The same is true with Deed
legal responsibility of the restrictions. Deed restrictions are
organization. Typically the not as critical today as they were
developer will transfer and they were often implemented
before there were formal Land
ownership of the association
Use controls in place. Deeds will
to the homeowners after show private roads and
selling a predetermined maintenance responsibilities of
number of lots. the lots taking access as well as
easements affecting the property.
Generally any person who Deeds always need to be
wants to buy a property examined.

within the area of a
A Real Estate agent lost his license
Homeowners’ Association because he assured the buyers
must become a member, and that they could construct an 8‐
therefore must obey the foot fence after buying. The HOA
restrictions however, limited
restrictions that often limit the
fence height to 6’. It is important
owner's choices. for a Real Estate Agent to know
exactly what restrictions affect a
Most homeowner associations property. HOA documents are
are incorporated, and are readily available and a look at the
subject to state statutes that deed will quickly show Deed
Restrictions for the property. And
govern non-profit of course Zoning Regulations are
corporations and homeowner public information and staffs are
associations. State oversight of usually readily available to provide
homeowner associations is assistance.
minimal, and it varies from
state to state.


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ZONING 101

HOAs will most likely have an Architectural Review Committee
that will need to approve improvements and changes to
homeowners’ properties. This will include changes to the exterior
of the property including additions, out buildings, fences, exterior
color changes and often removal of trees. These committees help
insure the standards of the community. It will keep your neighbor
from painting their home Day-Glo Pink!

In addition, there will be HOA Covenants, Conditions and
Restrictions as well as Bylaws, Maintenance Obligations and
other pertinent rules and procedures. These documents will be
publically recorded and referenced on the recorded development
plats and surveys. When there is a conflict between local
governing laws and the HOA covenants, the stricter of the two
take precedent.

The sidebar outlines some important points that real estate agents
must understand. Every agent involved in selling or buying in a
HOA community should familiarize themselves with the HOA
requirements and procedures in the community. The property
owner will probably have a set of copies. Most HOAs will have a
website which contains the documents as well. The sidebar refers
to differences in Zoning Regulations, Deed Restrictions and
HOA Covenants and Restrictions. A real estate agent should be
aware of any and all of these and how they impact the property,
and what the consequences can be if they don’t.
A HOA will have fees or dues and an agent should know what
these are. Fees need to be considered when buyers investigate
purchasing, are they reasonable, how often, if at all, do they
increase, etc. These fees or dues must be paid and if not, the HOA
can place an assessment lien on the property which is also a cloud
on the title and the house could not be sold until past dues are
paid. The HOA can foreclose on the property as well. These things
would need to be clarified by an attorney, but an agent should be
generally aware.

Fees will vary by the types of properties. For example, I live in a
mixed use community with Single-family detached homes and
Townhomes. The HOA fees are higher for the townhomes than
the single-family homes. More things are covered by the HOA for


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ZONING 101


the townhomes. The townhomes landscaping, grass cutting,
amenities and home exteriors are maintained by the HOA from
the monthly fees paid by the property owners. This insures the
long term viability of the townhome community and protects
home values into the future. The single-family detached homes
pay a lesser annual HOA fee to maintain the common areas such
as parks, playgrounds, entrance landscaping and signs.
Improvements to the individual properties still need to meet HOA
standards.





















































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ZONING 101

HOA Architectural Review Committee A HOA Committee that
reviews additions and improvements to homes in the community
to assure compliance with the HOA Covenants and Restrictions.


HOA Covenants, Conditions, and Restriction (CC&Rs) A
restriction on the use or development of land, or which requires
affirmative actions to be performed like the payment of dues to a
Homeowners Association, maintenance of common open space,
etc. This is set forth in a recorded agreement, and that runs with
the land and is binding upon subsequent owners of the property.
When there is a conflict between local governing laws and the
HOA covenants, the stricter of the two take precedent.


HOA Governance Usually HOA's are structured as private
corporations or private unincorporated associations (commonly as
non-profit ones). HOA's are governed by federal and state statutes
applicable to corporations (or unincorporated associations if so
structured), as well as the HOA's own "governing documents".

HOA Board of Directors Initially the board is composed of
developer-appointed members, in order to maintain the character
of the community that the developer has for it. As the percentage
of ownership shifts from the developer toward owners, the
corresponding percentage changes from developer-appointed
members to homeowners elected at an annual meeting, and
ultimately the board will consist solely of homeowner-elected
members. Usually the board (or parts of it) will be elected at an
annual meeting of the homeowners, as specified in the Bylaws.


HOA Management Many homeowners associations hire
management companies to handle the governing duties of the
association. Management services are typically divided into three
categories: financial only, full management, and on-site
management. Financial services typically cover administration of
bank accounts, bookkeeping, assessment collection, and the HOAs
budget.

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ZONING 101

HOA Bylaws Bylaws typically address rules of operation including
issues like membership, annual dues, the roles and duties of the
Board of Directors.


(Sample HOA Declaration of Restrictions):

DECLARATION OF COVENANTS, CONDITIONS,
RESTRICTIONS,
MAINTENANCE OBLIGATIONS AND EASEMENTS FOR
DAWSON CREEK

THIS DECLARATION OF COVENANTS, CONDITIONS,
RESTRICTIONS, MAINTENANCE OBLIGATIONS AND
EASEMENTS FOR DAWSON CREEK (the “Declaration”) is made
this day of , 2009, by DAWSON CREEK PARTNERS,
LLC, a Delaware limited liability company, c/o
(hereinafter referred to as the
“Declarant”).

W I T N E S S E T H :

WHEREAS, Declarant is the owner of all those certain lots,
pieces or parcels of land, including residential lots and private open
spaces situate in Hundred, Kent County, State of
Delaware and being more particularly bounded and described and
set forth on the Record Major Subdivision Plan for Dawson Creek
Subdivision (hereinafter referred to as “Dawson Creek” and also
referred to herein as the “Premises” and also sometimes referred to
as the “Property”), as prepared by
dated and recorded in the Office of the Recorder of

Deeds in and for Kent County, State of Delaware (the “Recorder’s
Office”) in Plot Book , Page (the “Record Plan”); and

WHEREAS, Declarant desires to develop the Premises as
depicted on the Record Plan into a residential community
comprised of individual building lots on which single family
detached residential dwellings are planned to be built (“Lots”), and
further including additional lands identified on the Plan as “Active
Open Space, Passive Open Space, Alleys, Wetlands, Stormwater


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ZONING 101

Management Area, and Stormwater Management Facility (which
shall include ponding areas, swales and drainage easement areas)”,
all collectively referred to as “Common Areas”, if any, and further
including all other lands within the Premises (collectively “the
Community”), if any; and

WHEREAS, the Declarant desires to provide for the
preservation and enhancement of the property values, amenities,
and to contribute to the personal and general health, safety and
welfare of residents and owners of the Lots and to subject the
Premises to the covenants, conditions, restrictions and
maintenance obligations set forth in this Declaration, each and all
of which is and are for the benefit of the Premises, and for each
owner of a part thereof; and

WHEREAS, Declarant is desirous of imposing upon the
Premises certain covenants, conditions, restrictions, maintenance
obligations and easements respecting the use thereof; and


NOW, THEREFORE, THIS DECLARATION WITNESSETH:

That the Declarant hereby covenants and declares that it shall hold
and stand seized of the Premises, under and subject to, and
hereafter each part of, or Lot in, the Premises is and shall be held,
transferred, sold, conveyed and occupied subject to the following
covenants, restrictions, and easements which shall be covenants
running with the land and which shall be binding upon the
Declarant, its successors and assigns and all subsequent or
successor Declarants, owners, occupants and visitors of the
Premises.















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