Residential Estate Industry Journal | Page 16

ARC overview T he residential community comprises of around 2000 residential estates, which are governed by homeowners associations. When owners buy into a residential community, they automatically become members of that specific association. These homeowners associations are non-profit companies falling under the auspices of the Companies Act. estate, and could also include estates with hotels, schools, business parks and other commercial entities. There are homeowners associations that are referred to as common-law associations. Directors and trustees of both forms of homeowners associations have a fiduciary responsibility in respect to their roles and responsibilities in leading the associations. • A privately owned organised community where the developer has installed services and infrastructure that is maintained by the homeowners association. A professional community manager is employed to manage these communities and it involves overseeing the operations of finance, security, maintenance, compliance and aesthetics. Types of residential estates will vary from a golf estate, equestrian estate, eco estate, retirement village and wildlife 2009 16 Residential communities with an HOA vary in size from small boutique communities with 10 homes to large estates with over 10 000 homes. Generally speaking, residential communities are characterised by: • Is contained within boundary walls and electric fencing with a control room and controlled access gates. • Homes that are constructed within agreed architectural guidelines maintaining the aesthetics as per the development plan. • Member facilities like walking trails, sports 2011 2012 2013 2014 centres, community centres, boating and horse stables etc. • Financed by a member levy paid by all owners as determined by an annual budget approved at an Annual General Meeting. • Sub developments that are sectional title schemes may be contained within these estates. Due to these characteristics, property values in an organised community can be up to 30% higher than property in a suburb. 50% of these residential communities are in Gauteng, 18% in the Western Cape, 10% in Kwazulu Natal, 10% in the North West province and 7% in Mpumalanga with the balance spread across the remaining provinces.The average property value is highest in the Western Cape and Kwazulu Natal and is lowest in Gauteng.