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Subject: HOA vs. POA

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JohnH4
(Georgia)

Posts:1

03/23/2006 6:59 AM
I sit on a board in Georgia. We recently hired a great management company. They have begun pushing the board to change our covenants from an HOA to a POA. I have looked on the web and can not find any difference - in Georgia - between a POA and an HOA. Our sub-division has almost 400 homes and is completed. The builder has not been involved with the HOA for 5 years. Can anyone tell me what the real difference between an HOA and a POA is? Thanks for any information.

RogerB
(Colorado)

Posts:4686

03/23/2006 7:47 AM
John, it's wonderful to hear a board member say they have a great management company. I don't know what advantage you would have in Georgia for changing from a homeowers association to a property owners assocaition. What reasons did the management company share with you? One difference between an HOA and POA is: in an HOA the homeowners do not necessarily have to own property. I say, unless there is a good reason "If it isn't broke don't fix it." Roger

JeffreyC1
(Georgia)

Posts:2

04/30/2006 2:53 PM
John - I'm currently a sitting board member for a 290 home community and we have been working with our attorney to change our community over to a POA from the current HOA status. This change will actually help your Association in several ways, one being that if someone is behind in their dues you can foreclose on the their home (and when the paperwork arrives at the door, you would be suprised how fast their pay up) also if someone forecloses on a property in your community you're the last group on the payback list, with a POA your on the top of the list and the community does not loose any money on these folks.

DuaneW1
(Georgia)

Posts:34

01/10/2009 8:56 PM
I see how long ago this was posted, and yet as President of our Board in a community of 106 homes, 40% rental. Our Management Company has just started pushing this POA idea because of the ability to put liens on homes easier. I've only started investigating what is the advantage vs. the disadvantages, and this is the only one I've come up with so far. It will cost $350 to file the paperwork and it would seem that it would have to be voted on by the entire association. The Board can't just decide to pursue this can they? I'm unsure as to the merits of changing, and am wondering if the advice still stands, if it ain't broke, don't fix it. Thanks, Duane

CharlesW1
(Georgia)

Posts:826

01/11/2009 5:24 AM
Good day all. I’m no expert by any means. However, our community (I was on the board then). We opted into a POA just last year, finally! After several years, a couple hundred dollars and many, many hours of hard work. The board worked diligently to gather the necessary signatures in order to opt into being a POA. We also purposed several amendments to our covenants (in hopes to benefit the contributing members of the association) The advantages far out weigh any disadvantages (ONLY one I’m aware of, if you’re a “deadbeat”). Although, an attorney is required to rewrite the changes/amendments to the covenants (for lack of proper terminology) There have been hundreds of posts pertaining to and discussing the POA. I encourage you to read the all, every post. I have since become a little more knowledgeable (thanks to everyone who had posted) about what a POA is. I will help you and anyone else as often and as frequently as possible. Use the search feature/box, upper right hand corner, for additional threads previously written. I will gather and post (later date) some information that will help you have a better understanding of what exactly a POA is. Property owners Association (POA) was establish by a gentlemen who was an attorney with a distinguished and renowned law firm and opened up his OWN firm and created the Georgia POA. I respect the rules the HOATalk.com has posted therefore, I can not post additional information. I would like for you to contact me, via email, at mrconstantia@yahoo.com. I will reply to that email with much more details. Until then, continue forward. Opting into a POA will directly/indirectly affect every deeded member of your association. Chuck W. BTW- what was previously posted about being put at the “top of the list” is partially true, second to primary mortgages and secondary mortgages. The money owed to the association takes presentence over the majority of the creditors’ bills when the house =sells, as stated above the association has a much better opportunity to recoup the monies owed.

Charles E. Wafer Jr.

MaryA1

Posts:0

01/11/2009 7:20 AM
Well, this is all news to me. Here in AZ there is no difference that I know of. Some assn's are POAs, some are HOAs and some are CA (community or condo assn's) but all fall into the AZ statutes for planned communities or condo assns. But, as we've all remarked a time or two, every state has its own laws! I just cannot understand the reasoning that only POAs can foreclose. Has any Georgian ever thought to ask the legislators why?

RobertR1
(South Carolina)

Posts:5164

01/11/2009 8:05 AM
I thought we had this hashed out. Mary is right, states are different. But don't all states have only three kinds of Homeowners association. Single family, multifamily and time shares. They get mixed up a little or a lot in some associations and different statutes may apply, but the difference between HOA and POA is the name. Also, is it pertinent to mention this posting started out in 2006?

RobertR1
(South Carolina)

Posts:5164

01/11/2009 8:20 AM
To Charles, Are you saying this POA entity that you have set up is some kind of Federal Law that provides that POA's have more authority or lattitude, and would make all HOA's better able to buy property in Real Estate foreclosures and the POA would move up in seniority ahead of the Mortgage Holder. I am also way confused how POA/HOA, whatever, most operating as non-profit with a budget that by mandate does not allow for speculation with any funds, could or would want to buy and sell properties. IO am totally confused.

CharlesW1
(Georgia)

Posts:826

01/11/2009 8:48 AM
RobertR1, NOPE, never claimed that a POA is anything other than taking precedence over other creditors. EXCEPT, MORTGAGES and SECONDARY MORTGAGES (for lack of the correct language) I have neither the time or the ability to articulate exactly what a POA does or does do for an association. I can/have read why, but to explain it is a whole other scenario. Like reading a medical dictionary. I can, like many other can, but to understand it or too explain it so others is entirely different. Sorry! Chuck W BTW- perhaps it would benefit you to also read the previously written post, as I suggested earlier.

Charles E. Wafer Jr.

RobertR1
(South Carolina)

Posts:5164

01/11/2009 8:59 AM
Charles, Try Google advanced search, "Georgia Property Owners Association Act" http://www.google.com/search?hl=en&as_q=Georgia+property+owners+association&as_epq=&as_oq=&as_eq=&num=10&lr=&as_filetype=&ft=i&as_sitesearch=&as_qdr=all&as_rights=&as_occt=any&cr=&as_nlo=&as_nhi=&safe=images

MaryA1

Posts:0

01/11/2009 11:33 AM
Charles, I did a google search for "GA Homeowners Association Act" and got nothing except reference to the "GA Property Owners Association Act". In reading that statute, section 44-3-227 states: "the corporate name of the association shall include the word or words "homeowners", "property owners" or "association". This tells me the act would apply to an HOA or a POA. I also found the following from a GA attorney website: "Condominium and Homeowners Association Attorneys Atlanta Condominium Law -- Atlanta Home Owners Association Law Georgia also has a statute called the Georgia Property Owners Association Act which relates to the powers and rights of homeowners associations. Homeowners associations also commonly have disputes with regard to their formation, declarations and by-laws, restrictive covenants, and dues, assessments and fees. Legal counsel is often times necessary to untangle the issues and to determine the applicable laws and rights of all of the parties. This attorney explicitly states the GA Property Owners Assn Act applies to homeowners association. He doesn't state there are different laws for HOAs and POAs; in fact doesn't even use the term POA except in the title of the GA statute. I hope you can see my confusion and perhaps offer some clarification! Can you at least give me a reference to the statutes that apply to HOAs?

JosephW
(Michigan)

Posts:879

01/11/2009 12:01 PM
Mary, I believe that HOAs/POAs that were built before the POA Act was adopted had the option of moving under the Act. The Act apparently doesn't apply to the HOAs/POAs built before it was passed. So technically, the original poster wasn't changing to a POA, just moving their association under the Act. Joe

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DuaneW1
(Georgia)

Posts:34

01/20/2009 6:38 PM
Thanks for all who have taken the time to respond to my inquiry concerning POA's. Our management company is pushing the idea and I am struggling to see the advantages or more importantly what are the disadvantages. Our board has decided to table this matter and focus more on changing the percentage required to change our covenants. I will continue to read the previous postings to understand this better. Duane

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