What are HOA Fees? What are the benefits?
A homeowner’s association (HOA) is an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties within its jurisdiction. The purchase of the property automatically makes the homeowner a member of the HOA and dues are required. Other than the dues (expenses) which usually are paid periodically there are many benefits the homeowner and their family can experience. First let’s go into the history of how HOA fees started according to Credit.com the organization was founded by a real estate developer in order to manage a community of houses, townhouses or condominiums. According to the New York State Attorney General’s website, this association “is given the authority to enforce the covenants, conditions, and restrictions as well as manage the common elements of the development.” In order to belong to a homeowners association (and, subsequently, live in the community it oversees), you’ll have to pay its dues. These dues can run from under $100 a year to over $1,000 a month, depending on the community. That’s why it’s important to note before you buy a home in such a neighborhood whether you can live with its rules. You’ll also want to consider if the community’s amenities and benefits make sense for you and your family. That is very important to keep in mind when looking for a home that you’ll be residing in, due to the fact of not following all the regulations required in most commonly the gated communities that these HOA fees are consisted of. If the communities find a particular resident in the organization, they will not hesitate to evict them for that cause. One disadvantage of living in a home that is part of a homeowners association is that the association gets to determine what an acceptable appearance for your home is. The paint color, where you park your car, how often you clean your roof or mow your lawn, the landscaping of your front yard and how you decorate your home’s exterior for the holidays may all be scrutinized by a homeowners association. One advantage of a homeowners association is mediating disputes between neighbors. So, for instance, the association will contact a neighbor about a noisy dog or loud party, not you. And there may very well be a rule about noise levels after hours that the association will be able to enforce. Falling behind HOA fees can lead to foreclosure, this is another reason you’ll want to make sure those HOA fees are in your budget. A HOA can move to foreclose on your property if you fail to pay its dues and/or associated late fees. Laws can vary by state. A few, for instance, place limits on when an HOA can move to foreclose. Homeowners associations handle the upkeep of swimming pools and tennis courts and other recreational areas so the common areas and shared amenities in a neighborhood are likely to be maintained in a good condition. As you can see the pros and cons of Home Owner Association fees; obviously a big reason to be aware of when searching for a home.