A homeowner’s association (HOA) is a legal entity in a community-based, subdivision, or condominium building that drafts and affects rules for their properties and occupants. Anyone who buys property within the HOA’s authority becomes a member of the association by owning the property and is obliged to pay dues, referred to as HOA fees. These associations define what members can do and cannot with their properties.

These associations are formed within localities or communities of single-family homes or condominiums. HOA’s are usually created to govern the use of properties within their jurisdiction. They are composed of community residents who run the affairs of the association. As said earlier, to become a member, you must buy a home within the community where the association is situated.

Typically, HOAs have a board of governors/directors elected to implement and supervise the association rules and regulations. All HOAs have their rules and regulations documented in a Declaration of Covenants, Conditions, and Restrictions (CC&Rs). Flouters may be required to pay out-of-pocket fees as a penalty or compelled to abide by the laid out guidelines. It’s only in extreme cases; flouters face a lawsuit. What are HOA dues

In simple terms, a homeowner’s association (HOA) fee is monthly dues homeowners residing within the community remit to the association to aid in maintaining the unit properties, amenities, and all corners.

HOA fees are composed of multiple services and costs, and the services rendered vary based on the community’s needs. Therefore, if you plan to venture into HOA communities, compare and contrast, which HOA is more affordable and suits your requirements.

What does the HOA fee cover?

Every HOA community is unique on its own. When on a house-hunting mission, it’s focal to ask for a copy of the document containing HOA’s rules and regulations from the seller so that you can make an informed decision on whether the association suits your needs or not. The copy also outlines the kinds of services that are covered by the monthly fee.

Hence, the following are some of the services paid for by stakeholders monthly HOA fee payment:

  • Lawn Care

What this covers will depend on your locality. If you reside in a detached home or townhouse, most probably, you’ll be liable for your lawn care (though your HOA has a hand on how a lawn should be maintained and how long the grass untrimmed. HOA only takes care of typical lawn and gardening areas. Also, HOA steps in when snow builds up in shared roads and parks to make them usable.

  • Pest control

If pests invade a building repeatedly may it be in common areas or the entire house, your dues may cover the expenses associated with pest prevention and control services. Detached homes or townhouses are unlikely to include this since they are liable for the problems resulting from pests.

  • Insurance

This only encompasses insurance for vandalism to areas within the HOA scope, such as the shared spaces or the exterior of the building if you reside in a condo. Since this doesn’t cover the property inclusively, you’ll need to buy a personal insurance policy to cover everything you’re capable of, including the interior and exterior of your condo or detached home.

  • City services

Civic amenities like garbage removal, water, and sewage are covered in HOA fees, meaning you’re exempted from such monthly dues.

  • Amenities and services

Some HOAs communities allow their residents access to a plethora of amenities like a pool, gymnasium hubs, among others. Additionally, the HOA may render various security services such as limited access to the community or a condo with a security guard’s gate and installing security cameras. Hence, HOA fees are proportional to the amenities and services rendered.

  • Maintenance and repairs

A portion of your monthly dues will be devoted to repairing and maintaining shared areas and structures. This entails exterior walls, roofs, parking areas, and shared roads.

Though we’re all reluctant to add extra expenses to our monthly budgets, HOA fees typically cover costs for items you could have spent on, and sometimes this can boost your savings. Access to various social amenities like pools and gym without breaking the bank signal that paying monthly HOA fees is worth it.

What are the homeowner’s association meetings?

A homeowner association is an organization, often a non-profit enterprise under the watch of volunteer homeowners with common goals in their housing industry. The association is mandated to oversee the housing units within the community on behalf of homeowners. The association collects monthly dues from the homeowners and hires contractors to do the necessary repairs.

What happens at the homeowner’s association meeting?

The HOA is obliged to meet at least twice annually, although some associations meet quite often. During the meeting, members are informed of the things that have transpired since their previous meeting. The issues brought to the table are addressed, and the members make recommendations where necessary. If the board finds out that the current HOA fees are inadequate to finance repairs, maintenance, among other things, they can recommend an increment to current monthly dues and eventually take a vote.

How an effective homeowner’s association meeting is held?

Community members are informed about the upcoming meeting, along with its agenda via email. If the issues being addressed will require members to vote, the message will wow members to attend without fail.

Like any other formal meeting, attendees must sign in a sheet as proof of attendance.

The meeting kicks off with the chair informing the members about the agenda of the meeting. The secretary then starts to take meetings.

To ensure there is an orderly discussion and no actions and motions have been left unaddressed, the board should adopt a parliamentary procedure. This means every topic will be allotted time, and the timekeeper will inform the members when time is running out.

Accord all the board members’ time to speak but ensure their time is limited unless it’s a presentation.

Conclude the meeting by going over what was agreed upon and summarizing the issues discussed at the next meeting.

Conclusion

Homeowners Association (HOA) is an organization that makes and enforces rules about the use of its properties among its residents. The association has all the rules documented in the Declaration of Covenants, Conditions, and Restrictions (CC&Rs). Anyone intending to become a community member by buying its properties is issued with a copy of the document to have an insight into the association and its protocols. As said earlier, this entity levies dues to owners for maintenance and keeping the community units clean. With the benefits of that Home owners Associations provide such as lawn care and snow removal they are worth the money if you enjoy the peace of mind of having your community taken care of. If you’re more of a do it yourself and prefer country type houses where the nearest neighbor is a mile down the road than maybe you should avoid houses that are overseen by a Home Owners Association