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How HOAs Work

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 us in our contact form here. 

What do my HOA dues pay for?

Ongoing Maintenance

Ongoing Maintenance

Ongoing maintenance and repairs to common areas, equipment, systems, and shared amenities. Depending on your community, this may include: Lawn care and landscapring, water, plumbing, sewage systems, A/C and heating systems in a clubhouse or pavilion, lighting throughout the community, trash removal, security systems/gates, elevator system, cleaning, painting, upkeep of common area exterior, pest control, maintenance of shared amenities such as pool, fitness equipment, clubhouse, playground, walking trail, basketball court, tennis court, etc.

Utility Payments

Utility Payments

Homeowners' associations cover the costs of electricity, lighting, water, heating, air conditioning, etc. for all of the community's common areas.

Personnel

Personnel

If your community employs its own employees, such as maintenance and janitorial staff or a social event coordinator, a portion of HOA fees is used to cover their salaries and benefits.

Insurance Policies

Insurance Policies

Your association must purchase a master insurance policy to protect your community's building structures, exteriors, and community property against damage, plus other riders and add-ons as required by your community's location, property type, and other needs. Remember, this insurance does not replace the need to carry your own homeowner's policy!

Reserve Funds

Reserve Funds

Fiscally sound HOAs allocate a portion of their assessments to a special long-term reserve account to cover planned and budgeted renovations or repairs that do not occur on a regular basis, such as repaving interior roads or plastering the pool, or resurfacing the pool deck and replacing gate motors. If the reserve fund is not large enough to cover these expenses, your HOA will levy a special assessment to make up the difference, and this is an additional fee you must pay.

Property Management

Property Management

To ensure their community's ongoing operations and stability, many HOAs enlist the services of professional community association management companies; their fees are covered by HOA dues. A professional community management company will effectively implement the policies by the Board, and provide full-service management services that add value and enhance residents' lifestyles. While some may consider HOA fees and unnecessary expense, they're actually very necessary to enhance your lifestyle and keep your community clean, safe, beautiful and financially stable, which helps protect your property values.

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If you need a property manager or a tenant to access your property HOA account you may add an authorized user by submitting their information below.