Homeowner Associations (HOAs) are a private organization that governs a community. They manage and enforce rules for the properties in the area, and collect monthly fees to pay for amenities and the upkeep of the community.
Depending on the association, fees may be collected on a monthly, quarterly, or annual basis. But this begs the question: What is typically included in HOA fees?
This article discusses everything you need to know about HOA fees, including the role of HOAs, consequences of non-payment, and common questions about fees and tax deductions.
What Is A Homeowners Association (HOA)?
A Homeowners Association (HOA) is a private organization that manages and maintains a residential community.
It enforces community rules and oversees the upkeep of shared areas like swimming pools, parks, fitness centers, tennis courts, and golf courses.
In exchange, members pay a monthly, quarterly, or annual fee to support the organization’s operations. These fees are mandatory and are often discussed prior to the purchase of a home within the community.
HOAs have been around since the mid-1800s, but it wasn’t until the 1960s that they became a common (and desired) feature in newly developed residential properties.
Today, over 75.5 million Americans—or 30% of the total population—reside in a community governed by an HOA, per the Foundation for Community Association Research.
Of the 1.3 million homes built in new subdivisions, over 80% of homes are part of HOAs. This percentage is expected to increase as the prevalence of Home Associations continues to grow in response to the rising demand for community-managed living.
What Are HOA Fees?
Homeowner Association (HOA) fees are monthly, quarterly, or annual fees that the association collects from members in exchange for maintaining and managing the community.
Property owners within these communities are automatically considered members and are thus obligated to pay these fees.
HOA fees typically cover basic utilities, such as garbage disposal and wastewater collection, as well as maintenance of common areas like swimming pools, tennis courts, and community clubhouses.
HOA fees vary depending on the location, size of the home, and the number of services provided.
High-cost living areas often have higher HOA fees due to elevated maintenance costs, labor expenses, and property values.
For example, in Houston, Texas—a city known for its relatively lower cost of living—average HOA fees typically range from $200 to $400 per month. In contrast, New York City, with its much higher living expenses, often sees HOA fees upwards of $650 per month.
HOA fees for condominiums and townhomes also tend to be higher than single-family homes because they often cover additional expenses, such as shared plumbing and electrical, building insurance, and exterior maintenance.
As for the size of the home, HOA fees are often higher fo