In August 2008 I had the pleasant task of preparing a townhome for sale. It was in a Planned Unit Development (PUD) and obviously had monthly dues. The dues were slightly higher than the average in this community, but it did include water, gabage, and earthquake insurance. Priced slightly below market — and remodeled — I just knew this would sell quickly.

While reading the HOA documents, I noticed that some of the meeting minutes seemed rather “sterile”. What I mean to say is the meetings seemed to be rehursed and not as lively as some that I had attended in my own PUD community. The reserves were ok but not great. The budget seemed to be on track. There also seemed to be an unusual number of “Executive Sessions” (meetings that homeowners are not allowed to attend).

My first open house was subdued and even though I sent invitations the neighbors stayed away. My first Broker Tour 3 days later revealed what would become a year-long nightmare for my sellers:

A homeowner came to the door and informed me that there most likely will be “special assesments”

It turned out to be $38,000 per unit. It seems as though the major component of the complex had been neglected over the years — items like the siding, sewer system, common area parking structures and roofs. The complex built in 1973 had over 200 units and was in a fragile state.

This leads me to a few lessons that were learned from this experience.

• Lesson 1: If you live in a PUD, attend the Board of Directors meetings. Most of the homeowners in this complex never attended a single meeting or ever voted for a Board Member.

• Lesson 2: If you live in a PUD and you see deterioration anywhere in the complex, report it via email to the management company (document the comunication and response time). Remember this: Even though the damage may be on the other side of the complex, you share the ownership regardless of the location.

• Lesson 3: Before puchasing in a PUD, read and truley understand the HOA documents. Find out when major repairs have been completed and if there is a budget for emergency repairs. Question everything. Your real estate agentshould contact Board of Director members and the management company prior to removing your inspection contingecies.

There are many townhome complexes on the Peninsula that are managed very well that still have low dues and high reserves. Even some that were built around 1970 are in great shape. There’s no secret to a successful HOA, but you as a homeowner should be activly involved. Know your neighbors and join a CERT program through your local public safety organization.

Most of all, before writting an offer, choose a Realtor who knows about HOAs.