Permissible colors for exterior house paint. Restrictive covenants differ from community to community, but there are some you can expect to see: Unlike zoning regulations, which are government-imposed requirements on how land can be used, restrictive covenants are established by HOAs to maintain the attractiveness and value of the property. Simply put, CC&Rs are just the rules you’ll have to follow if you live in that community. What are CC&Rs? Common restrictive covenants These rules will be spelled out in the covenants, conditions, and restrictions, or CC&Rs. In addition to management of the common areas, homeowners associations are also responsible for seeing that its community members follow certain rules and restrictions. These board members will set up regular meetings where owners can gather and discuss major decisions and issues with their community. For major expenditures, all members of the HOA usually vote, not just members of the board. Luckily, though, these assessments are typically temporary until the reserve is back up to a comfortable level.Īll HOAs have boards made up of homeowners in the complex who are typically elected by all homeowners. And yes, you as a resident still have to contribute your share of dues, even if your property is on the first floor. In either case, your HOA board may require you and your fellow homeowners in the community to pay a special assessment bill above and beyond your monthly HOA fee.įor example, if the elevator in your condo building goes out and it’s going to cost $15,000 to replace it-but the HOA reserve account holds only $12,000-you and the rest of the residents are going to have to pony up at least an additional $3,000 in dues, divided among you, to make up the difference. Or the association may not have enough in reserve to cover necessary expenses. Typically in these cases, the HOA will tap the reserve fund, which may become depleted as a result. What is an assessment?īe aware that when your community is hit with extreme maintenance expenses-like a flood in the underground parking lot due to a broken water heater or a pipe bursting-homeowner insurance will cover some of it, but whatever’s left will have to be paid by your HOA. And taxes are not necessarily lower on a condo compared to a house. It’s important to note that HOA fees do not cover property taxes. They’re also used to cover long-term repairs and replacements such as roofs, plumbing, and exterior paint. This reserve fund serves as a safety net, to be tapped for emergency expenses that arise when natural disasters or vandals strike-or just the unavoidable wear and tear. HOA fees are usually divided into two parts: One portion goes toward monthly expenses, and the remaining money goes into a reserve fund. HOA fees might also include insurance payments to cover common areas. Many HOAs pay property managers to oversee maintenance and deal with other real estate–related property issues. The larger the homeowner area, the higher the HOA fee-which makes sense, because the family of four homeowners in a three-bedroom condominium is probably going to be using the common facilities more than a single resident living in a studio condo. HOA fees can be lower or much higher depending on the size of your house or condominium and the services provided. For a typical single-family home, HOA fees will cost homeowners around $200 to $300 per month. To cover these property maintenance expenses and repairs, homeowners associations collect fees or dues (monthly or yearly) from all community members. You can think of the purpose of an HOA as similar to real estate property taxes that a homeowner pays for city and state services-except that in this case, these fees go to pay for amenities and maintenance in your own community or condo building. Someone has to take care of it before the water turns green and toxic, right? Rather than expect any one homeowner in the neighborhood to volunteer his time and money to fix the problem, homeowners associations are responsible for getting the job done. Let’s say, for instance, that the pump in the community swimming pool stops working. What is a homeowners association? WHAT is an HOA anyway? 
Is buying a home with an HOA right for you? We’ll help you decide by laying out the pros, cons, and costs of an HOA.
The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 27% today, according to a recent National and State Statistical Review for Community Association Data. If you’re buying a condo, townhouse, or free-standing home in a neighborhood with shared common areas and amenities (such as swimming pools, parking garages, and security gates), odds are high these areas are maintained by a homeowners association. In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly.
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