Frequently Asked Questions

What is a Home Owners Association (HOA)?

A Homeowners Association is an organization charged with maintaining and enhancing the appearance, maintenance, financial viability and value of the community. The Association is a legal corporation organized and incorporated under the laws of MD. The Association has Articles of Incorporation that entitle the association to exercise powers of a corporation. By purchasing a home within your community association, you automatically become a member of the association and will remain so for as long as you own your home. Membership in the association is mandatory and automatic for all owners. The deed to each lot and/or parcel specifically designates that the property owner will comply with the Covenants, Conditions, and Restrictions (CC&R’s) of the association. You should have received a copy of these documents at the time your home purchase was closed by the title company.

Do I have to become a member of the Homeowners Association?

Yes. As a property owner you will participate in the governance of the community through participation in the Homeowners Association, committees and perhaps as a board member. You can't live in a neighborhood with an HOA without belonging to the organization. One reason developments have Associations is to keep the homes and facilities in the community looking nice. If some households don't obey comply with the rules, it would make the HOA ineffective and detract from the value of the community. That is the reason that you have to become a member as a prerequisite to buying a home in a community with a Homeowners' Association.

What Do Dues Pay For?

Like any budget, a homeowner association’s budget is designed to provide for upcoming needs to operate and maintain the community such as utilities, landscaping, maintenance and administration. The Annual Assessment (or dues) of Cove Creek Club provide funds to cover operating expenses for all the common areas, golf course, marina, other facilities and a small number of staff to provide care and administration of the community property. Separately, the Club has a significant reserve fund that has been set aside for future expenses, such as a major renovation or replacement. By delivering services at the direction of their members, the HOA meets the expectations of the residents by working to provide a safe, attractive, well maintained living environment, preserving the nature of the community and protecting property values.

What is a Common Area?

A Common Area is any area of improved real property intended for shared use by the members of an association. In Cove Creek, the Common Areas include roadways, pathways, green areas, ponds, the club house, breeze house, fence lines, guard house and exercise facility. Also included are the golf course, practice facility, marina, boat ramp, boat storage area, tennis courts, bocce courts, beach, and common area shore line protection rip-rap.

The houses vary in price, why are the dues all the same?

Your Annual Assessment is based on costs to maintain community services, amenities and common areas. All members have equal access to all common areas and derive the same benefit from them. Costs are divided between all the homeowners equally and the value of your home does not affect these per homeowner costs or the access or benefits you have to all the services and amenities Cove Creek offers. 

Will dues go up in the future?

An increase in the Annual Assessment may be necessary to ensure that income covers any escalation in cost or expenses.  Any increase is approved by the membership during the annual budgeting process.  

What is the purpose of the Board of Directors?

The Board of Directors is responsible for maintaining the assets of the community, ensuring the financial health of the association, determining the level of services, and establishing policies and/or rules and regulations governing the use of the common areas. The Board of Directors is made up of individual homeowners who own property within the Association and who are elected to that position by the members of the Association. All affairs of a Homeowners Association are governed by the Board of Directors. In Cove Creek, our five board members are elected by the membership to serve three year terms and they elect one of their number to serve as President of the Board. The Board has a fiduciary responsibility to do what is in the best interest of the association and to provide leadership in community affairs as dictated by the Governing Documents. This includes timely collection of assessments as well as payments made for services provided to the Association. In general, the Board Members are the decision makers for the Association.

What is a Special Assessment?

A Special Assessment is an amount that is periodically due from each homeowner to cover unique expenses of the common areas, hazard insurance, and or to provide reserve funds for future improvements. Assessments are recommended by committees of homeowners and the board of directors, and voted on by the overall membership of the community Homeowners Association.

What is the Capital Contribution fee when you purchase a house?

The By-laws of Cove Creek Club establish a Capital Contribution that becomes due and payable to the Cove Creek Club by the purchaser of a lot at settlement. As a new owner and member of Cove Creek, you have immediate access to and enjoyment of unique amenities that have been developed and well maintained over an extended period of time. To protect those amenities and resources that provide this unique lifestyle, previous members have established and contributed to a Capital Reserve fund to ensure we can recover from a calamity or need for major renovation or repair of our common property and amenities. The Capital Contribution is to assist with funding the continued operation of the Cove Creek Club.

Why do I need to fill out an Architectural Application for changes to my property?

Cove Creek Club is a deed restricted community that has a set of Declarations of Covenants, Conditions, and Restrictions. When you buy a home in Cove Creek you become obligated to abide by the restrictions outlined in the CC&R's. Architectural control restrictions are designed to maintain the aesthetic harmony of the community, and to protect property values. When Cove Creek Club was first developed, it conveyed a certain look and feel to provide design consistency. Over time, residents would like to make modifications to their homes such as replacing windows or garage doors or other changes. Without an architectural standard and approval, these gradual changes can easily affect the appearance of the community.