Common Ground

In December 2004, Howard Amborn and his wife, Esther, left the lawn mower behind and moved into Bunker Lake Village, a Hanson Builders common interest community (CIC) comprised of forty-one cottage ramblers in Andover.

“Age was perhaps the most significant factor in deciding to move from our Lakeville home,” says Amborn. “Yard work, home maintenance, and the stairs reminded us that as age progresses, the joy and work required to maintain a beautiful yard and a large home become less important.”

For an increasing number of Twin Cities residents, a CIC, like Bunker Lake Village, just makes sense—and it’s not always about age.

“[People] are so busy with their lives—work, family, vacations, and even playtime,” says Sarah Evans, the neighborhood association liaison for Ron Clark Construction & Design in Edina. “The whole idea about someone else mowing the lawn and somebody else watching over them . . . people really like that freedom.”

Now the freedom afforded to homeowners through a CIC or an association-maintained residence no longer means succumbing to a boring, homogeneous row of townhomes. According to Evans, a single development, like Ron Clark’s Trout Run Preserve in Savage, can range from million-dollar, custom single-family homes to condominiums starting at $190,000—and everything in between.

“A lot of developers are starting to blend different styles of homes in the same area, which makes it feel much more like a town and a little more human,” she says.

Whether you’re a retiree looking for some help with the yard, or a thirty-something who would rather be vacationing in Cabo than replacing roof shingles, there are a few steps you’ll want to take before diving into the CIC market. Read on for tips from developers, managers, and industry professionals.

Surveying the Property
Once you’ve armed yourself with a realtor who knows the market, and have narrowed the pool down to a few suitable properties, it’s time to do some legwork.

Initially, when you step into a CIC, look for signs that it’s a well-run and well-managed property, says Amanda Johnson, a common interest community manager for Hanson Builders.

“See how quickly driveways, roads, and sidewalks are cleared of snow,” she says. “A good association is going to have that cleared within eight hours of snowfall. In the spring and summer, a good way to determine the quality of the association is by looking at the lawn care.”

Outward appearance can give you a taste of how a property’s association operates, but it’s also vital to take a look inside and see how the association is run.

In every CIC, an association made up of homeowners makes decisions for the community or shared property. Often, the association will hire a professional management company to deal with outside vendors such as lawn care providers, and take care of accounting and tax needs. Sometimes a management company will even run meetings, respond to homeowner complaints, and settle disputes within the community. A good management company will stay current on any laws or codes and keep homeowners informed of changes. In addition, many companies work with CIC developers from the very beginning stages of a community, giving them a unique knowledge of the property.

If there is no management company, Johnson tells buyers to proceed with caution. “Some homeowners’ associations decide they want to be completely responsible,” she says. “The problem is that usually they’re not lawyers and accountants and tax advisors.”

If homeowners make the decision to handle their own tax returns and legal issues, each homeowner—whether on the association board or not—is liable for any mistakes made. With a management company, says Johnson, “they have the liability in addition to the homeowners having the liability and that comes down to money [in] the homeowner’s pocket in the future.”

Along with tax and legal issues, management companies often become the go to place for homeowner concerns or complaints. This eases neighbor relations and can create a better living situation. Without company involvement, says Alex Stenback, a mortgage banker and host of The Home and Wealth Show on FM 100.3 KTLK, “It can be uncomfortable because there’s not a third party making the decisions.”

On the flip side, just because a CIC operates with a management company doesn’t mean it’s always smooth sailing. “At times, depending on the management company, they can be more or less responsive than everyone wants them to be,” says Stenback. “From personal experience, it seems larger association management companies have a hard time responding to the volume.”