Once upon a time you bought your home in an HOA or community association, you became part of a common interest development. As a result, you are required to share the costs of maintaining and operating your community’s common areas, equipment, and shared amenities; an inviting appearance goes a long way toward enhancing property values. These services are covered by your homeowners association fees, which each owner must pay. Payments are due monthly, annually, semi-annually, or quarterly, depending on your community.
HOA assessments (also known as “maintenance fees” or “dues”) are set by the Board of Directors, who determine each owner’s share based on projected annual expenses. Each year, the Board of Directors discusses the budget of the association based on the last few years’ spending trends, funding of the reserve or savings account, and planned projects for the upcoming year. Board members do not profit from HOA fees; they are homeowners just like you, and are obligated to pay assessments same as all owners.
You know you must pay an assessment, but do you know what this money is used for? Each association has its own unique rules and policies, so it is important that you read your community’s Covenants, Conditions and Restrictions (CC&Rs) and Bylaws to find out the specifics.
You can locate the budget under the Community Info section of your online account, or request a copy from your Community Manager by emailing [email protected].