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HOAs vs Pragmatism

April 3, 2025 By Tayson Rockefeller Leave a Comment

An interesting dynamic that has emerged over the years is the unanticipated change in lifestyle, business practices, zoning updates, county regulations, and state regulations affecting simple, common-sense aspects of everyday living.

One of the most common examples I have referenced over the years is short-term rental regulations. Idaho legislation is widely known for protecting property rights, including the right to rent a home—more specifically, for short-term or vacation rentals. There is, however, a provision allowing homeowners associations (HOAs) to prohibit short-term rentals (typically defined as stays of 30 nights or fewer). The issue is that most of Teton Valley’s new subdivisions were established around 2007, during the last real estate boom. While there was a vacation rental industry at that time, it was still in its early stages. I recall that our in-house property management firm, Teton Valley Property Management, initially used reservation software similar to what a hotel might use. The industry didn’t truly take off until the last real estate boom, coinciding with Airbnb’s launch in 2008.

Many new subdivisions during that period copied previous development covenants and restrictions, making only slight modifications to fit the new developments. As a result, they often failed to account for the potential rise of short-term rentals, even if the original intent was to prevent them. Consequently, nearly every subdivision in Teton Valley allows short-term rentals. Since the last real estate boom, new communities have been established, though they have become less frequent due to zoning density changes and new subdivision requirements. Even so, new developers typically avoid prohibiting rentals out of fear of alienating potential buyers who may see rental income as an advantage.

While the longstanding controversy over short-term rentals is an easy topic to discuss, there are other noteworthy examples of the tension between HOA restrictions and evolving realities.

Environmental Changes

I think we can all generally agree that climate change is real at this point. While this isn’t a topic I typically cover in my neutral real estate blog, it does relate to issues like wildfire resistance. Some communities still require natural wood siding and even shake shingle roofs. As of this writing, Teton Valley has been fortunate to avoid dramatic increases in insurance rates and has experienced very few natural disasters. However, a brush fire in 2024 was one of the first significant fires within the valley in my memory. Despite this, some subdivisions continue to resist changes that would allow for more fire-resistant building materials.

Build-Out and Subdivision Maturity

Issues tend to arise as subdivisions develop. It’s surprising how many communities in Teton Valley remain mostly or partially undeveloped, often due to land investors holding onto property, even if it is just to own a “piece” of Teton Valley. However, some communities are beginning to build out rapidly. While 2007 was a land development boom, the recent uptick in Teton Valley has primarily been in residential development.

Fortunately, most property owners have been considerate of their neighbors when developing. For example, in Teton View corridor neighborhoods without designated building envelopes, many owners stagger their homes to preserve both their own views of the Tetons and those of their neighbors. Even when unintentional, local knowledge of the landscape and architectural intuition tend to guide development in a way that takes advantage of the surrounding beauty. However, this isn’t always the case. Not all property owners are neighborly, and some development factors were not thoroughly vetted during the planning process. I’ve seen multiple subdivisions require amendments to plat maps or building envelopes to accommodate practical adjustments. While HOAs are often cooperative in such cases—particularly when county variances require it—the process of amending subdivision documents can be cumbersome, especially when no formal association has been established.

Zoning Changes

This is the big one. In August 2022, the county introduced an entirely new land development code and zoning map. This update cut densities nearly in half, revised overlays, and altered development processes. While existing parcels were grandfathered in terms of density (for example, a properly subdivided 2.5-acre parcel now within a 5-acre density zone remains buildable), other changes present challenges. Here are a few key examples:

Scenic Corridor Overlay

The new scenic corridor overlay affects properties within 500 feet of Ski Hill Road. Under the new regulations, landowners may need to modify development plans to comply with overlay requirements. The county does not enforce subdivision covenants, conditions & restrictions, but its development guidelines supersede those of subdivisions. This can create conflicts when subdivision guidelines contradict county zoning restrictions. Fortunately, the county often grants variances to accommodate developers and subdivisions, though it adds an extra layer of complexity.

Wildlife Overlay

Zoning changes have also impacted properties within designated wildlife and natural resource overlays. While most subdivision parcels under five acres are now exempt from additional requirements, some still face complications. For example, an overlay may sit directly on a planned building site, requiring a variance or adjustment that could conflict with existing subdivision plats.

Wetland and Floodplain Overlays

These overlays have been revised, and riparian buffer setbacks have increased. Even if a wetland delineation was approved years ago, the Army Corps of Engineers has expiration timelines for delineation approvals. As a result, landowners may find that new setbacks prohibit development in previously intended areas. Again, variances are possible, but they add another hurdle for landowners and developers.

Setback Requirements

Simple setback changes can also cause issues. Some subdivisions were designed with minimal setbacks based on previous zoning regulations. If the required setbacks have increased, buildable areas may be reduced, making development more difficult.

Why Not Simply Modify HOA Covenants?

Given these challenges, one might ask: why not update subdivision covenants and HOA policies? While this seems like a logical solution, it is often easier said than done. Many subdivision bylaws require a majority—or even a supermajority—of homeowners to approve amendments. This typically necessitates board meetings, formal votes, and recorded signatures. In my experience, this is a difficult process. Many investors and homeowners are resistant to change, especially if it could affect property values, rental income, or architectural consistency within a community.

Final Thoughts

Despite these challenges, it’s important to note that very few lots are significantly impacted by zoning or covenant conflicts. Still, prospective buyers and developers should carefully review subdivision documents and reach out to HOA representatives when possible. While these changes introduce new complexities, I believe that practical solutions will emerge over time. County officials have reassured me that properly subdivided parcels remain buildable, even if new regulations introduce obstacles. Additional challenges—such as septic system requirements in wet areas and rising construction costs—may also arise.

Teton Valley is still in the early stages of its growth, despite the substantial expansion we’ve seen. I anticipate further zoning updates, new comprehensive plans, and evolving industry standards will continue to shape the landscape (no pun intended). But if history is any indication, just like past controversial real estate issues in Teton Valley, my prediction remains simple: things will work themselves out.

Condo and Townhouse HOA Dues Increasing

July 6, 2023 By Tayson Rockefeller Leave a Comment

Most condo and townhouse associations in Teton Valley share the same set of responsibilities which are collectively paid by owners in the community. Usually these include exterior maintenance, exterior insurance, snow removal, lawn care, open space taxes and maintenance and in some events, trash, water and sewer. Not very many communities have additional amenities but those would be included here as well. Another important item includes reserve funds for future repairs. While this line item isn’t generally ignored, it is often overlooked. New communities usually don’t require much maintenance with new siding, new roofs, new parking lot surfaces and so on. However, all of these items (and many others) eventually require maintenance.

It was common with most of these early developments for the developer to have some level of input with respect to establishing the dues. For obvious reasons, it was in the developer’s best interest to keep the dues low. This might be influenced by the developers desire to keep the dues low during their ownership (though this can be structured a number of different ways) but also to keep the dues low to attract new owners in the development. This isn’t necessarily bad practice as these developments simply didn’t require much in the way of maintenance early on.

As units sell in a development there is usually a transition where a board of owners is formed. This process is normally outlined in the subdivision’s documents. Developers often work with management companies or accountants to oversee the process, but admittedly, it can oftentimes be difficult to gain participation. Historically, Idaho has not had a clear guideline with respect to these processes, but the state is beginning to publish some basic requirements. Based on my experience, the dues are often kept at the same developer rate for many years with many new owners resisting an increase, particularly when there is no need for immediate maintenance. The problem is that this mentality perpetuates which ultimately leads to two choices;

1) A drastic increase in dues when it is apparent that the community will lack funds for major maintenance items

2) A “one time” special assessment

Obviously the best path would be a proactive approach considering future maintenance and building reserves. While it is too late for this process in many instances, my personal preference is a combination of the two – a reasonable increase to consider future maintenance items and beginning to build reserves coupled with a special assessment to address immediate concerns. This keeps the dues within reason for resale values, but also addresses all issues.

Today, we are beginning to see many communities employ these tactics not only for maintenance, but also for inflation. The general cost of maintenance has undoubtedly increased. Even at a 2% per year increase for consideration of inflation would result in a significant increase after 10 to 20 years, which many communities have not accounted for. As we all know, recent inflation has been significantly higher than 2%. Similarly, roofs, siding, parking lot surfaces – all of these major maintenance items have a bookmark sometime in the 20-year range, which is fast approaching for most communities developed in the 2005-2007 real estate boom. My advice for community members and associations is clear, but buyers should also consider these imminent increases. Personally, I would be more concerned with a community with low dues when compared with a community with high dues. HOA meeting minutes, budgets and reserve accounts are always available to buyers, and this is something that should be reviewed or at least discussed with an HOA representative.

What You Need to Know About Buying Land!

January 31, 2021 By Tayson Rockefeller Leave a Comment

Though the market has changed throughout my career, the same questions always seem to come up. Here are a list of common Questions and Answers:

Q: Is there a time frame in which I need to build?

A: The short answer is, not that I’m aware of. I have seen special circumstances, however. For example, in the unlikely chance that a homeowners association might allow someone to build a guest house before a main house, they might require a home to be constructed within a certain time frame. The valley has a pretty poor track record of actually following through with these types of agreements, and most homeowners associations have caught on.

Q: Do I need to do anything with the land such as maintain it?

A: In general, not much. Most subdivisions have an active homeowners association. The HOA will typically take care of the road maintenance, fire pond testing, and other similar maintenance requirements and tasks. The most common exception is with respect to noxious weeds. While many developments have an agreement with a farmer for the open space or unused areas of the development, some do not. If you receive notice from the county, you may be required to hire a company to spray the weeds such as musk thistle. Even if you don’t, they will, and can assess your tax bill. Fortunately, the cost of weed spraying is usually pretty affordable.

Q: What are the holding costs like?

A: Here again, usually, pretty affordable. There are two primary categories of expense including property taxes and homeowners association dues with the occasional special assessment or local improvement district (LID) fee. The first two are fairly common and obviously vary depending on the location and amount of amenities within the subdivision. Fortunately, most websites (including ours) display property taxes and HOA dues on the listing detail page. Some properties take advantage of an agriculture tax rate in the event the property is being used for ag purposes (and is over 5 acres), in which case the taxes can be extremely negligible. Other fees such as the aforementioned special assessment, LID or other fees are rare, but can come about for road maintenance, utility improvements or other projects usually related to infrastructure.

Q: What can I do with the property before I build?

A: This depends, but the biggest determining factor is whether or not the property is in a subdivision with covenants and restrictions. A big one that comes up is whether or not you can camp on your property. While some associations may allow it, I would think it should be generally assumed that they do not. For properties outside of a subdivision there are still some regulations. I have written several articles that can be found on my blog website related to what you can do with your property, what it’s like to be part of a homeowner’s association in the area, and more.

Q: Tiny Homes, Rentals, Campers?

A: Here again, the subdivision layer is the first step to research. Most subdivisions have a home size requirement in the range of 1,800 square feet, but I have seen them as small as 0 to 600 SqFt and is large as 2,600 SqFt. HOAs can also restrict short-term rentals via the covenants and restrictions. Though the county’s position is subject to change, smaller homes are generally allowed so long as they are permitted and built in accordance with the current building codes. RVs and campers are always a contentious subject, so make sure to follow up with the county or city on that one. To summarize, It’s always a good idea to find a real estate professional that understands the local market. I’ve heard a number of stories about Buyers that didn’t have the resources, tools or professional insight to make an informed purchase and later discovered that the property or the rights associated with the property were not what was expected. We’ve been selling real estate for a long time in the area and have great resources available to our customers when it comes to information about developments, requirements and subdivision documents and would love to help!

HOA’s & Rental Restrictions

May 17, 2016 By Tayson Rockefeller Leave a Comment

Driggs ID HOAIf any of you read the local paper, or follow social media etc. here in Teton Valley, you probably remember the drama with a Condo Homeowner’s Association in Driggs, ID that made the decision to require landowners and property managers to restrict long-term rentals (longer than 30 days) to “single family” use. That association later defined single family as:

(In an email to TVRManagement & other local property management firms dated January 5th, 2016) “Tenant” is defined as a single person, or a couple living together as a family, regardless of gender. The other occupants may include the child or children of the “Tenant.” Occupancy of each rental unit will be restricted to a maximum of six (6) persons. No subletting shall be permitted. All other provisions in Section 8 of the Amended Rules and Regulations shall remain in full force and effect.

Many of us tried to make an argument that the HOA was in a violation of the Fair Housing Act, but remember the protected classes under the act are race, color, religion, sex, handicap, familial status, national origin. This does not include marital status or sexual orientation – however you will note “regardless of gender” in the above definition, which was a product of another issue which arose during the HOA’s – successful – eviction of all tenants that did not meet the strict guidelines above.

As mentioned above, that homeowner’s association was successful in evicting all tenants in violation based on their own definition, mostly due to threats of immediate action for hefty fines and liens. That sparked me to write a post on HOA Fines and the procedures HOA’s must follow.

Read the story here: Can Homeowner’s Assosiations fine me for violations?

THEN – (and rather ironically) Idaho Legislature amended the bill where I derived the information for the above article, House Bill 511 to go on to state:

(3) No homeowner’s association may add, amend or enforce any covenant, condition or restriction in such a way that limits or prohibits the rental, for any amount of time, of any property, land or structure thereon within the jurisdiction of the homeowner’s association, unless expressly agreed to in writing at the time of such addition or amendment by the owner of the affected property. Nothing in this section shall be construed to prevent the enforcement of valid covenants, conditions or restrictions limiting a property owner’s right to transfer his interest in land or the structures thereon so long as that covenant, condition or restriction applied to the property at the time the homeowner acquired his interest in the property.

With the above said, the HOA in this example in Driggs will probably keep the rule in effect stating that it was passed by the board prior to the amendment of this bill- whether that’s legal or not. In fact, the original amendment was passed by a board majority vote based on the board’s authority to do so… meaning there is a separate statement in the bylaws authorizing the board to make amendments without approval of the owners as stated in the bylaws. I am sure this statement was meant to be used in an emergency situation (authorizing emergency repair work without consent of the owners) and not for purposes described above, but I digress.

I am sure the situation with this particular HOA will work itself out. Despite my posts about HOA’s, they are not evil. They are created with a necessary purpose, and operated on a voluntary basis. Most of the time, (99% of the time) for good, genuine reasons. At least we know these situations happen elsewhere, and are gaining attention.

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