Find out:- What are HOA fees?- How are they spent?- What are Condo fees?- What are special assessments?- Can an HOA fine residents?- What happens if residents don't pay their HOA dues?- What are average HOA fees?
What are
HOA Fees?
HOA fees (or dues) are a monthly, quarterly, or annual charge that HOA members pay.
They are necessary for the budget, as they are used to pay for bills.
What are HOA fees spent on?
HOA fees (otherwise known as dues), are spent on:
- Maintenance & repairs for amenities & common areas
- Salary for staff (eg the manager)
- Pay for electricity, water, insurance, etc.
- Reserve funds
What are Condo Fees?
Condo fees normally include building and common area maintenance, garbage collection, heat & water.
So these dues can be high, but they can include a lot of services.
Special Assessments:
They're extraordinary fees that the board charges when there is an emergency or unexpected damage (eg after a hurricane).They are levied by the board when the reserve funds (which are savings for HOAs/Condos) are low.
Reasons for Special Assessments:
1 - The HOA board didn't calculate expenses correctly
2 - Homeowners aren't paying their dues so there is a lack of icome
3 - Unforeseen repairs have to be undertaken
4 - Adding new amenities or making changes to the HOA
HOA Fines
Can the Board fine owners?
The HOA board can fine members if they commit a violation, or break a rule.
What happens if owners don't pay fines?
When members don't pay HOA fines, the board can apply late fees to the fine. Eventually the HOA can put a lien on the house.
Average Fees in Different States:
California: $200-$300/monthFlorida: $100-$500/monthTexas: $10-$600Across the US the average is $250 per month