Because of municipal fiscal challenges communities are often created by the developer. The Association will assume many responsibilities that traditionally belonged to local and state government.
Pittsburgh, Pennslyvania (PRWEB) October 31, 2013
Recent studies conducted by the Community Association Institute indicate that 24% of U.S. Homes are in community associations. 24% is a big number and growing every day. In 1970 there were 2.1 million residents living in community associations. By 2015 sources expect that number to be well over 65 million (Source: IBOPE Inteligencia).
Rinaldo Acri, CEO of Acri Community Realty says “Drive around any town, it is easy to spot this trend. It’s hard not to notice the embellished community entrance signs welcoming you to yet another new community development. Homeowner Associations are popping up everywhere in America today.
Chances are you have noticed but maybe you did not understand what all the fuss was about. Back in the day a contractor put up the house and you were lucky to get a few street signs. The change is here and it is not likely to ever go away. “
Acri Community Realty has discovered the four leading reasons for the explosive growth of Homeowner Associations is primarily driven by the current economic conditions. The power of collective services’ bundling enables communities to successfully operate during economic downturns. Shrinking recessionary municipal budgets force developer’s to seek alternate ways to ensure housing development approvals. Hiring the right Property Management Company will ensure future fiscal stability and property value growth. Management is an essential ingredient that safeguards the welfare of a community exiting developer control.
1. The Value of Collective management
Restrictions are developed and administered by the community Board of Directors who are elected by the neighbors. Rules and regulations are established to ensure the needs and interests of the association are being met. Additionally most communities hire a management firm to help with the process. See The 5 secrets to Obtain Great Property Management Services.
2. Privatizing Public Functions
Because of municipal fiscal challenges communities are often created by the developer. The Association will assume many responsibilities that traditionally belonged to local and state government (e.g., road maintenance, snow removal, trash pick-up, and storm water management). By privatizing responsibilities homeowners have more successful service outcomes.
3. Expanding Affordable Homeownership
There has been a persistent effort to increase homeownership in America. Homeowner Associations help to distribute the costs over a broad base of residents. Bulk contracting for services is a huge cost saving. And in some states common grounds held by the non-profit community corporation are real-estate tax exempt.
4. Minimizing Costs and Fostering Market Efficiencies
Community associations maintain home values collectively. Whereas there is a common enforceable interest created to keep the association properties safe and well maintained. An association is more responsive to the residents concerns and can move much quicker than government entities.
With increasing amenities included such as gated communities, clubhouses, pools, tot lots and recreational areas it makes sense why there is such a large demand. Local municipal government does not want nor does not have the financial resources to police, implement and maintain these comforts. In fact many local government entities insist on HOA formation before allowing home sites to be developed.
Homeowners in planned communities report to have a much better living experience when under management. The homeowner association is by far the best means of ensuring continued property value increases and protection.
New home purchases, especially with enhanced community amenities will definitely be a part of a Homeowners Association and it will be a good thing for owners.
View the statistical infographic; explaining the huge growth of this market sector.
About Acri Community Realty:
Acri Community Realty, located in the Greater Pittsburgh Area, specializes in pro-active property management in re-active times.
Acri is known for the great care and pride in the work done to protect and enhance the value of your investment. They have the privilege of managing a diverse portfolio of properties while caring for each and every home like it is their own.
If you've had any issues with your HOA that you'd like Acri to try and delve into, and possibly write about later contact us via our website at Acri Community Realty. We are interested to hear about your experiences and how an association has helped or hurt you.
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*The term “community association” refers to planned communities (e.g., homeowners associations), condominium communities and housing cooperatives.