What is a Condo Homeowners Association Fee (HOA)?
HOA dues are assessed monthly and often are based on square footage of the owner’s unit. Fees are normally set by the HOAs board of directors and adjusted annually. The HOA dues typically pay for water, sewer, trash, management, insurance and exterior maintenance. Some HOAs also cover such things as cable TV, electricity, security services and other items. Any excess HOA fees that exist after paying for pertinent services as described above are stored in an account and called reserve funds. Dues must be factored into the equation when a lender decides how much you can borrow. HOA dues don’t cover anything inside your unit, such as water damage from a leaking hot water heater. You will need your own homeowner’s insurance policy for the interior contents of your unit. What are Condominium Special Assessments? Occasionally, Homeowners Associations need to levy what are called special assessments. Special assessments are a one-time expense that the building (or more appropriately, the home
