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VA loan doesn’t exempt home from HOA rules

Q. I am a retired military veteran on disability. Despite three requests for a copy of my HOA’s bylaws and restrictive covenants, the board has not responded. I was able to obtain a copy of the covenants through other means. Now the board has found me in violation of various covenants and threatened to fine me, which could ultimately result in foreclosure proceedings. There is a section in the Declaration that says “Exempt Property: The assessments, charges and liens created under this Article shall not apply to the Common Area, nor shall they apply to any Lot the title to which is vested either in any with 1st mortgagee subsequent to foreclosure or in the Secretary of Housing & Urban Development or the Administration of Veterans Affair or any other state or federal governmental agency which acquires title by reason of such agency’s guarantee ….” I read that to mean that my property is exempt from the covenants since it is a VA Guaranteed Loan. Am I correct? I

The section you have quoted in the Declaration exempts mortgage lenders and certain federal agencies (HUD, VA) from the duty to pay HOA assessments when they acquire title to a home through a mortgage foreclosure.

It does not exempt them, or you, from complying with any of the other restrictive covenants in your Declaration. Note that the exemption only mentions “assessments, charges, and liens”; it does not mention restrictive covenants.

Your mortgage may be guaranteed by the VA, but the exemption from payment of assessments only applies if the VA (or your lender) ends up owning the home after foreclosing on it.


Authors: CharlotteObserver.com: Michael Hunter

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“Ask The Experts” Articles have been Reprinted with permission from the Charlotte Observer

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