Homeowners Association (HOA) Fees and Special Assessments

I've often been asked what the fees and assessments costs are for any particular home or condo. Oftentimes, homebuyers don't realize what these fees and assessments cover. Having HOA fees benefits you as the homeowner by keeping your building and grounds looking nice; however, it is always a good idea to get a copy of the regulations of the association to be sure you can conform to the requirements.

What are Homeowners Association (HOA) Fees?

Homeowners Association (HOA) fees are required funds that are collected from homeowners to obtain the income needed to pay for any common exterior and interior maintenance, lawn maintenance and landscaping, snow removal, concierge, pool, tennis court, maintenance and use, as well as any other recreation maintenance and use. Almost always, HOA condo fees will include water, sewer, and garbage costs. These fees are billed monthly or yearly and run on average from $100-$700 per month, depending on several factors.

What are Special Assessments?

Occasionally, Homeowners Associations need to raise funds for a one-time expense for which the homeowners must pay. These are called special assessments and include significant maintenance or repairs such as a new roof on a condo building, for example.

Low monthly HOA fees, or inadequate reserve funds, have the potential to lead homeowners into a situation where a special assessment is necessary to cover large expenses.

It is important to factor HOA Fees and Special Assessments into your purchase. Make it a point to review existing financial information for the building, including reserve fund levels and special assessment information, when making your purchase. Also inquire about the HOA Covenants and Restrictions which can include the following:

• shingles and exterior paint
• fences and hedges
• trees, lawns, and weeds
• pools
• swing sets and basketball hoops
• garages and sheds
• mailboxes
• clotheslines and garbage cans
• outdoor lights and antennas
• window coverings and wreaths
• home businesses
• pets (size or even acceptability)
• noises and obstructions of view