Everything You Need to Know About Mixed-Use Developments
Mixed-use developments have become increasingly popular and continue to pop up across North America. These communities are a great option for people who lead an active lifestyle and value convenience; however, they function a little differently than the standard condominium or homeowners' association (HOA). To get the most out of this unique living experience, it’s essential to understand the residential structure and dynamic culture. Read on to learn about mixed-use communities, what you should know before moving into one, and more.
What is a mixed-use development?
A mixed-use development is a community that includes a combination of residential, commercial, and retail parcels. Mixed-use communities can be vertical or horizontal and can consist of a single or multiple buildings, as well as outdoor areas. These developments typically feature retail and commercial space on the ground floor, with residential units above. They tend to be located in urban areas and are ideal for people who prefer to live, work, and play in the same space. In a mixed-use development, you might find:
Residential
- Single-family homes
- Townhouses
- Condos
- Apartments
Commercial
- Retail
- Restaurants
- Personal services
Recreational
- Parks
- Playground
- Pools
- Community centers
How are mixed-use associations structured?
Upon project completion, the developer will work with an attorney to create documents assigning responsibilities and controls within the community. Due to the variety of real estate, there are competing interests within mixed-use communities, but these documents are designed to protect everyone's investment. Many mixed-use communities have sub-associations—one residential and one commercial—under a master association, others have separate associations, and some have just one association with proportional board representation. No matter the structure, everyone must learn to co-exist and work to achieve the overall vision of the community.
What Are the Advantages and Disadvantages of a Mixed-Use Community?
The lifestyle offered in mixed-use developments has a lot of perks for homeowners, new and old. Here are some of the most significant ones:
Mixed-Use Development Pros
- Convenience. With houses and businesses in close proximity, homeowners will never have to travel far to run errands, have fun, or head home.
- Stable property values. Residential associations have rules and standards designed to keep curb appeal high, homes well-maintained, and the neighborhood safe. This translates to better property values in the long run.
- Enhanced sense of community. The amenity and business offerings of mixed-use developments increase the opportunities for homeowners to meet their neighbors and socialize.
Read More: How To Increase HOA Property Values
Mixed-Use Development Cons
- Rules. Although rules exist to protect the community’s integrity and improve the quality of life, some people may find them restrictive. Always read the rules to confirm they align with your lifestyle and preferences.
- Fees and dues. Regular fees and assessments are part of association living. The residential association in a mixed-use development collects dues and fees to fund operations and maintain the community.
- Lack of flexibility. Mixed use developments might not allow homeowners to make many changes to their units to maintain property values and aesthetics.
Read More: What Are HOA Rules and Regulations?
What should I know before moving into a mixed-use community?
Because mixed-use communities are so different, it's crucial to understand its association structure and your responsibilities before moving into or purchasing a residence in one. Prior to signing on the dotted line, you should gain clarity on the following:
- Allocation of common, limited common, shared facilities, and limited shared facility expenses
- Assessment cost and structure
- Voting allocations and rights
- Controls on permitted users
- Governing document limitations and amendment processes
- Hours of operation and special event abilities
- Individual unit boundaries
- Types of association membership
- Maintenance, operation, management, and reconstruction responsibilities
- Dispute resolution procedures
- Residential owner protections for the deterioration or adverse use of other parcels
Asking questions about these topics is key to having a positive experience in a mixed-use association. Moving into this type of community is a huge decision, and how the association functions—legally, socially, and financially—are important to not only your investment but also your quality of life.
How Can a Professional Management Company Help Mixed-Use Developments?
A professional management company provides the expertise and a strong skill set to help a board fulfill its duties. A management company may offer support with administrative, financial, and maintenance-related duties.
Other Types of Communities
You’re likely familiar with condominiums or “condos.” It’s often assumed that a condo is a type of home; however, that isn’t always the case. There’s much more to a condo than the actual building, and understanding its distinctions is necessary. Read our article, “Everything You Need to Know About Condominium Associations,” to learn more about condos and get answers to some of the most frequently asked questions about condominium associations.