Why HOAs expand?
Fortunately, expansionists boards do not govern most associations. But on occasion, an opportunity arises that is worth consideration. When an opportunity arises, few HOAs have a war chest of funds readily available to take advantage of the situation. Fortunately, the market for Association loans can help fill the void.
Adjacent land
Recently, an HOA in the Southeast found themselves facing an unpleasant dilemma. Their community bordered a private golf course. Many unit owners within the association were also members of the golf club. Their proximity to the golf course was one of the main reasons they lived in the community.
Aside from the convenience of a neighborhood golf course, residents feared their home values would decline if the golf course disappeared.
Vacant unit
A Midwestern HOA found themselves in a precarious position when one of their units went into foreclosure. This unit had been a problem for many years and was impeding the overall values of the entire community. Although the lender had paid the delinquent dues, they did not appear to be in any hurry to market the unit.
consensus to renovate the neighborhood eyesore.
Clubhouse
Owners in a Southern community knew their dues were low compared with other HOA communities in the area. They also understood that they were in a dilemma. Their property values were depressed because they had no amenities. However, their dues were artificially low for the same reason.
The board undertook a study to assess and project how the market values would react if the HOA were to build a community pool and clubhouse. The results were compelling.