- Purpose of Homeowner Associations
- What are the Responsibilities of Homeowner Associations?
- What is a HOA fee?
- What are Common Restrictive Covenants (CC&Rs)?
- Mortgage Qualifications
Chances are if you found this article, you are thinking about buying a new home in Utah? Well, an important thing to consider when thinking about your next home is where that home will be located, meaning the immediate neighborhood around you. It may sound like a simple thing, but the community you live in matters. When buying a new home in Utah, the choice to buy in a community with a homeowner association (HOA) can have a positive return on investment for years to come. But a lot of people aren’t quite sure what an HOA does and if it is right for them. If you are buying a new home in Salt Lake, you’ll want to continue reading to learn 5 Things to Know About Utah Homeowner Associations.
Purpose of a Homeowner Associations in Utah
Homeowner associations are common within newer developments, like Daybreak, a master planned community in South Jordan, Utah. The purpose of the association is to make sure that a community continues to live up to its unique, original vision. Homeowner associations can be found in subdivisions, planned communities as well as multi-family dwellings (condominiums and townhomes). By purchasing a home within a community that has an HOA, you automatically become a member and are required to pay dues. These dues are known as HOA assessments or fees in most cases.
What are the Responsibilities of Homeowner Associations?
In most cases the HOA is responsible for the ongoing maintenance, improvement, preservation and administration of amenities and common areas, as well as the enforcement of a set of architectural standards and other regulations intended to preserve the character of the community. Buying a new home in a community with an HOA may help maintain property values and quality of life for the people who live there.
What is a HOA Assessment or HOA Fee?
The HOA assessment is the amount of money you pay to the homeowner association to cover the cost of their services. This cost may vary depending on the type of home or location of the home within a community. In general, the more services provided the higher the HOA assessment.
For example, a condominium or townhome may have a higher HOA fee than a single-family home due to the services provided even within the same community. In Daybreak we split the fee into two parts, master association and sub-association. Regardless of home type or location, everyone pays the master association fee. If you enjoy additional services, typical for a multi-family dwelling or a home in our 55+ communities—SpringHouse Village, you may also pay a sub-association fee to cover the cost. Below is an example of services provided by the Daybreak Community Association and the associated assessments.
| Homeowner A | Homeowner B |
| Purchases a condominium or townhome | Purchases a single-family home |
Included amenities & services:
| Included amenities & services:
|
| Pays master association + sub-association | Pays master association only |
Depending on the homeowner association, the HOA assessment may be due monthly, quarterly, or even yearly. On average the monthly fee for a homeowner’s association in the United States is $200 a month. In Daybreak, the master association monthly assessment is $131.50 for 2021, find out what is included.
What are Common Restrictive Covenants (CC&Rs)?
Covenants, conditions and restrictions—now that’s a mouthful! Don’t let CC&Rs scare you, they are actually another aspect of protection for your investment. When you purchase a home in an HOA, all homeowners agree to a certain set of architectural standards and other regulations intended to preserve the character of the community. The CC&Rs simply describe what is allowed or not allowed in the neighborhood. For example: Utah is famous for its National Parks, which means we love camping and RVs. However, an RV parked in the driveway of your home could be an eyesore for neighbors. If you live in a neighborhood with CC&Rs it may state that your beloved RV can’t be parked permanently in the driveway.
Overall CC&Rs are guidelines that all neighbors follow and by following them the neighborhood is kept to a certain standard. If a neighbor doesn’t comply with CC&Rs, then the HOA would get involved and work to reconcile the issue.
Mortgage Qualifications
If the new home you are considering is located within a community that has a homeowner association, your lender will take into consideration the HOA assessment when deciding how much of a mortgage to approve you for. They also calculate property tax. Keep this in mind as you search for a new home.
Next Steps
Now that you’ve mastered the 5 Things to Know About Homeowner Associations, it is time for the fun part—home shopping. Daybreak offers all kinds of choices for homes and neighborhoods. So we’ve created a step-by-step pathway to help you find your way to that just-right home.
Interested in more? Check out our related content on 20 Things to Know About Moving to Utah.
