HOA Amenities: Visually Appealing or Economically and Socially Justified?

Can amenities be removed without detracting from the appeal and quality of living in an HOA? In these tough economic times, terminating previously expected/available services is not out of order or rare. HOA services are not free and their existence does not mean they are necessary, cost justified and/or should continue (under current circumstances).

Consider your home phone (land line), bank checks, or cable TV service that you’ve been paying for year after year, at the same level, but now you have a cell phone, the kids have moved, and you now watch more TV. . limited, and you pay your bills over the Internet. Do these currently seem like good personal expenses? Similarly, your HOA is required of its members to complete an annual review of all services provided for cost/benefit and make sound business decisions about continuing, terminating, or modifying services.

This is known as your Board’s fiduciary responsibility, but the way some Boards operate, chances are you’ve never heard the word. I doubt your Board (especially in age-restricted communities with no term limits) will complete a candid review that considers the value of existing amenities and the financial impact on the community – they seal everything that currently exists, which is “the way out easy”. A beneficial amenity can be described as a necessary/expected service to the community, which attracts homebuyers and/helps maintain property value, contributes to the comfort and convenience of the community, and/or is used by/serves to the majority (preferably more) of the community.

Your real estate developer placed many so-called amenities in your community to attract buyers without regard to utilization and HOA fees. This is “eye candy” real estate. The developer understands that such facilities give potential buyers a “feel good” impression of the community, making them want to join and subsequently buy. Once the homes are sold and management of the community is handed over to the owners, these things are no longer the responsibility of the developer but are offloaded, with all associated expenses, to the HOA.

Their continued support/spending is justified on the basis of their existence alone: ​​management for lack of creativity. In many cases, such as in my age-restricted community in Colorado, the pool becomes a symbol of “eye candy” syndrome. Think about it, the pool is open 3 1/2 months, used mostly by 10-20% of the residents, some grandchildren, but can best be characterized as “no use” with the potential for expensive repairs and maintenance. Potential homebuyers in this age group (60, 70+) are no longer “water bugs” and their hierarchy of needs and amenities would rank a part-year, outdoor pool at the bottom of their list : “eye candy” does not increase home value, it increases expenses.

If the board thought outside the box about financial management (or should I say outside of their rocking chair, referring to their way of thinking, not their age), they would turn the pool area into an outdoor gathering and picnic area. more functional and higher usage, and apply the subsequent annual cost savings to a higher usage amenity, such as a gym. I’m not holding my breath, but then again, implementing term limits might change my pessimism. Therefore, most likely, your group and mine continue to exist based not on sense or financial benefit, but simply because it exists. I wonder what a community vote would yield if the pros and cons were fairly presented. How about choosing between an increase in HOA fees for everyone or ending pool (or other) service used by a few? We closed post offices, libraries, etc. For cost/benefit and usage reasons, why not the same thought process with HOA amenities?

Sure this issue and action may seem revolutionary, but the uproar will be brief, by the few and by the vocal, but the result may be that you can actually give your Board some respect for doing the right thing. A good rule of thumb for running services is to ask if they reflect sound business practices and/or are run similarly to your city/county government services. Bike trails, parks, police and fire services, and many other services are provided through tax collection. They make financial sense and add to the attractiveness of the community, have visibly high usage, and are expected. These are similar to snow removal, landscaping, and architectural services in an HOA.

Specific use facilities, such as gyms, swimming pools, soccer fields, and dog parks, impose a usage fee and, for the most part, pay their own charge to the community. If your HOA runs special-use classes, such as yoga or other exercise classes, participants pay a fee. The HOA Community Clubhouse used as the administrative/government center and venue for HOA meetings, clubs, parties and festivities is not considered a service, but a necessity and benefits 100% of the residents – no problem there. So you get an idea: what is required, what is not, what is pending review, termination or user fee assessment and what is not.

Once again, the fact that something exists and has existed does not justify its existence, period. The Sacred Cows exist with the support of their “lifer” Board and allow residents who are on autopilot to continue with the past no matter the cost to the community.