Introduction
Are you a first-time home buyer? Then you’re probably unfamiliar with HOAs (Home Owner Associations). You likely also have various questions such as: “What is included in HOA fees?” or “Where does HOA money go?” or “What are HOA fees used for?”
HOA money goes towards maintaining the overall appeal and functionality of a housing community. HOA fees help ensure that:
- Shared spaces are well-maintained.
- Common amenities are accessible.
- The neighborhood retains its cohesive appearance.
By pooling resources through the collected fees, HOAs are able to provide various services and amenities that enhance residents’ quality of life.
In this article, we’ll discuss what is included in HOA fees. We’ll cover the services that are commonly covered by HOA fees, such as exterior maintenance and landscaping, utilities, and community amenities. We will also discuss how these services contribute to the overall value and enjoyment of living in an HOA community.
By the end of this blog post, you’ll have a clear understanding of what is included in HOA fees.
Factors That Determine What is Included in HOA Fees?
It is important to note that what is included in HOA fees varies widely. What is included in HOA fees in community #1 will most likely be different from what is included in HOA fees in community #2 or community #3.
What is included in HOA fees depends on:
- Community Size & Type
- Location of the Community
- Amenities & Facilities
- Infrastructure & Maintenance Needs
- Community Preferences & Budget
- Local Regulations & Requirements
- Developer’s Initial Plans
Given that what is included in HOA fees varies, it is important for home-buyers to review the HOA’s governing documents to understand the specific services and amenities included in their HOA fees.
Community Size & Type
The size and type of the community can influence what is included in HOA fees. Larger communities are more likely to have extensive common areas and shared facilities. These common areas may offer a wider range of amenities, such as swimming pools, fitness centers, or parks. Smaller communities with fewer common areas may have a more limited scope of included services.
Location
The location of the community can also impact what is included in HOA fees. For example, communities in regions with significant snowfall may include snow removal services in their fees, while communities in areas without such weather conditions may allocate those resources to other services.
Amenities & Facilities
The specific amenities and facilities within the community can dictate what is included in HOA fees. Communities with amenities like clubhouses, parks, playgrounds, tennis courts, or walking trails may allocate a portion of the fees to cover the maintenance and operation of these features.
Infrastructure & Maintenance Needs
The age and condition of the community’s infrastructure can influence what is included in HOA fees. For example, older communities with aging roads or buildings may allocate funds for road maintenance or building repairs in their fees.
Community Preferences & Budget
What is included in HOA fees often reflects the preferences of the community members and the available budget. The HOA board, in collaboration with the homeowners, determines the priorities and allocates funds accordingly to provide services and maintain the community to the desired standards.
Local Regulations & Requirements
Some services may be mandated by local regulations or requirements. For instance, communities may be required to have insurance coverage or provide certain maintenance services to meet legal obligations.
Developer’s Initial Plans
In newly developed communities, what is included in HOA fees may be determined by the developer’s initial plans and the commitments made to homeowners during the sales process. Homeowners should review the governing documents and disclosures provided by the developer to understand what is included in HOA fees.
Comprehensive List of What is Included in HOA Fees
Please note that the list below of what is included in HOA fees is meant to be directive not exhaustive.
- Exterior Maintenace
- Landscaping
- Utilities
- Infrastructure
- Community Amenities
- Security & Safety
- Insurance
- Administrative Fees
Exterior Maintenance
Exterior maintenance is one example of what is included in HOA fees. This typically involves maintaining and caring for the exterior elements of the community’s buildings and common areas.
Here are some examples of what is included in HOA fees when it comes to exterior maintenance:
- Painting
- Roofing Repairs
- Gutter Cleaning
- General Upkeep of the Exterior of Homes
Landscaping
Landscaping refers to the design, installation, and maintenance of a property’s outdoor spaces. It involves the deliberate arrangement and cultivation of plants, trees, shrubs, flowers, and other elements. This deliberate arrangement enhances the aesthetics, functionality, and overall appeal of the outdoor environment.
Proper landscaping can:
- Enhance curb appeal.
- Create inviting outdoor spaces for relaxation and recreation.
- Provide privacy.
- Promote environmental sustainability.
- Increase property value.
Here are some examples of what is included in HOA fees when it comes to landscaping:
- Planting
- Hardscaping
- Lawn Care
- Irrigation & Water Systems
- Mowing
- Pruning & Trimming
- Seasonal Maintenance
In HOA communities, the responsibility for landscaping may fall under the purview of the HOA. Some HOAs wish to ensure consistent and cohesive community aesthetics.
What is included in HOA fees can vary depending on the specific HOA and its resources. Where landscaping is included in HOA, the HOA can:
- Hire professional landscapers.
- Self-maintain the landscape. The HOA may assign designated volunteers or form a landscaping committee.
Utilities
If you’re a first-time home buyer, then chances are that the question “does HOA include utilities?” has crossed your mind.
Here are some examples of what is included in HOA fees when it comes to utilities:
- Water
- Sewer
- Trash Collection
- Snow Removal
- Pest Control
Infrastructure
Infrastructure included in HOA fees refers to the management and maintenance of essential community infrastructure.
Here are some examples of what is included in HOA fees when it comes to infrastructure:
- Road Maintenance
- Sidewalk Maintenance
- Retaining Walls & Structures
- Compliance With Relevant Regulations & Standards
Community Amenities
The maintenance of common areas is an essential aspect of HOA responsibilities, and it is typically included in the HOA fees.
Here are some examples of what is included in HOA fees when it comes to community amenities:
- Swimming Pools
- Fitness Centers
- Clubhouses
- Sports Courts
- Parks & Playgrounds
- Walking Trail
- Playgrounds
- Community Gardens
Security & Safety
Security and safety measures included in HOA fees are implemented to ensure the well-being and protection of residents within the community.
Here are some examples of what is included in HOA fees when it comes to safety & security:
- Security Personnel
- Gated Access Systems
- Surveillance Cameras
- Security Patrols
Insurance
Insurance is another example of what is included in HOA fees. Insurance included in HOA fees typically refers to the master insurance policy that provides coverage for the common areas and shared elements within the community.
The HOA purchases a master insurance policy that covers:
- Common Areas
- Shared Structures
- Liability
What does this insurance cover? Potential losses or damages that occur due to:
- Accidents
- Natural Disasters
- Property Damage
Note that the master insurance policy and the insurance required by lenders are two separate types of insurance coverage that serve different purposes.
Administrative Fees
Administrative expenses may be included in HOA fees. When included, it encompasses the costs associated with managing and operating the homeowners’ association. Note that what is included in HOA fees may vary from one HOA to another.
Here are some examples of what is included in HOA fees when it comes to administrative fees:
- Accounting & Bookkeeping
- Legal Fees
- Office Expenses
- General (HOA) Management
- Property Managers
Conclusion
In conclusion, what is included in HOA fees varies from one HOA community to another. The services and amenities included in HOA contribute to the overall well-being and enjoyment of homeowners.
From landscaping and exterior maintenance to security and safety measures, these included services help create an attractive and cohesive neighborhood environment.
However, it is important thoroughly review the HOA’s governing documents to understand what is included in HOA fees for your specific property. With a clear understanding of what is included in HOA fees, first-time homebuyers can confidently embrace the advantages and responsibilities of living within an HOA community.
Sincerely,
Your Mortgage Minister
Frequently Asked Questions About HOA Fees
Are HOA fees paid in advance?
Typically, HOA fees are paid in advance, either monthly, quarterly, or annually, depending on the HOA’s payment structure.
Does HOA include utilities?
It depends on the specific HOA and its policies. While some HOAs may include certain utilities in the fees, such as water or trash collection, others may not.
What is a quarterly HOA fee?
A quarterly HOA fee refers to the payment schedule where homeowners pay their HOA fees once every three months (quarterly) rather than monthly or annually.
Where does HOA money go?
HOA money is used to cover various expenses, including maintenance of common areas, landscaping, insurance, management fees, utilities (if included), and other services or amenities outlined in the HOA’s budget.
Does HOA cover the water bill?
Some HOAs may include water bills in their fees, while others may not.
Does HOA include water and sewer?
Certain HOAs may include water and sewer services in their fees, but it varies depending on the specific HOA.
What do HOA fees include?
HOA fees typically cover a range of services and amenities, such as maintenance of common areas, landscaping, insurance, security, exterior maintenance, and in some cases, utilities or shared facilities like pools or gyms. The specific inclusions may vary among different HOAs.
What does HOA fee mean?
An HOA fee refers to the regular payment made by homeowners to the homeowners’ association. The fee is used to cover the shared expenses and services provided by the HOA to maintain and manage the community.
