How Much do HOA Fees Cost On Average?

Average HOA Fees in the USA

Your HOA fees are monthly payments you have to make to your local Homeowner’s Association. The payments made are used to beautify, repair, and maintain the neighborhood, and are compulsory. If you fail to pay your HOA fees, then your local Homeowner’s Association can charge you with late fees as well. You can expect to pay anywhere between $100 to $1000 on HOA fees. Most commonly, HOAs tend to charge between $200 to $300 in most communities.

The general rule of thumb is that if you have more amenities, resources and features available to you in your community, then you’ll have to pay more. The HOA uses the amount you pay to take care of all the common areas, and ensure that the community is a safe place for every family.

Common Questions about HOA Fees

What are HOA fees?

Homeowner’s Association fees, or HOA, is a sum of money that every resident in a condo, apartment complex, gated community or neighborhood pays. This payment goes towards the maintenance and care of common areas, such as the stairwell or the elevator in an apartment complex.

HOA fees also apply to single family homes in a neighborhood. In such cases, the HOA fees are used to take care of the neighborhood park, keep the roads clear of snow in the winter, and more. If you live in an area where you have to pay HOA fees, then it can be compulsory for you to do so. Failing to pay your HOA fees can lead to legal trouble, with you eventually having to pay the Homeowner’s Association the amount they charged you for.

Who is the Homeowner’s Association?

The HOA is a group of people from the neighborhood, tasked with maintaining and caring for the neighborhood. They collect fees every month, which are then used towards beautifying and providing amenities to the area. An HOA in an apartment complex could decide, for example, that they would use the HOA fees to hire a security guard for the building.

Often, members of the HOA are representatives from the neighborhood themselves. They work together to ensure that the neighborhood is clean, safe for all residents, and that all homes are following set rules. Not every community will have the same set of rules, as these tend to change with the HOA in question. For some HOAs, providing rules on how to maintain your lawn is common, while others may not care so much.

Ultimately, the Homeowner’s Association is responsible for caring for their neighborhood, and ensuring that all amenities are well provided, and safe to use.

The HOA and Monthly Payments

The HOA is almost always present in a condominium. If you live in a condo, then you and other tenants would probably have to pay your HOA an estimated fee every month. The same applies for apartment complexes, gated communities, and even whole neighborhoods.

The more amenities and services you can enjoy while living in an area, such as clean roads during snowy winters, the higher your HOA charges will be. The fees you pay will usually be in the form of monthly dues.

These fees are gathered from everyone living in the community, and then funneled into making the community a more beautiful and safer place for all residents. Any repair work, maintenance or additional of amenities is paid for through the fees paid to the Homeowner’s Association.

How Much Do You Have to Pay the HOA?

The exact amount you’ll need to pay to your HOA will depend on where you live, and the facilities and amenities available to you. In general, the more amenities you have available, the more you’ll have to pay the HOA.

This is as more amenities are available as the HOA is pumping monthly payments into making those amenities available. Your local Homeowner’s Association will make an estimate on how much they need to charge to maintain the community, as well as to beautify it. This amount can fall anywhere between $100 to $1000. Typically, most HOAs charge anywhere between $200-$300 per month. However, for more expensive neighborhoods with a great number of amenities, you can expect to pay a lot more to the HOA.

What Does the HOA Use The Fees For?

The fees collected by the HOA are used to repair, maintain, beautify and keep safe the neighborhood in question. The HOA is also responsible for setting up rules that are designed to keep the neighborhood safe.

Whenever you choose to live in a planned community, you will usually find that there is a Homeowner’s Association involved. They even take care of maintaining common parks, swimming pools, staircases, elevators, and all other common areas.

Even basic amenities, like garbage removal and ensuring that the roads are kept clean and maintained, are taken care of by the HOA.

However, should the HOA not have enough funds for something, they can choose to ask for more money for that alone. Say the HOA has to fund emergency road cleanup after a bad storm where trees fell over on to the main road. In such a situation, an HOA will first turn to its reserve fund. This reserve fund is a cash deposit where the HOA places a segment of the collected HOA fees every month.

It’s meant to be used in emergencies, or in situations where the HOA doesn’t have enough funds to perform its role. Should the HOA run out of funds, and the reserve funds not be enough for repairs and maintenance, the HOA can initiate an assessment.

HOA and the Reserve Fund

The reserve fund, like the name suggests, is only meant to be used in situations of dire need. The reserve fund can be used to bring in more amenities, or maintain and repair what is already there. Should the reserve fund not be enough for necessary repairs, then through their assessment, the HOA can ask for more funds from the community.

Can the HOA Charge Late Fees?

If you have failed to pay your HOA fees, then you can rest assured that the Homeowner’s Association will eventually pay you a visit. During this visit, you will be asked to pay your late fees. This will include the fees you have not yet paid the HOA, and in some cases, a late penalty as well.

Should you still refuse to pay your HOA fees, then the HOA can initiate a lawsuit against you. A lien can also be placed on your property, and or foreclose on the property. To avoid any problems and ensure that your community continues to look well cared for, pay your HOA fees regularly.

What Does the HOA Charge For?

Aside from caring for and maintaining the roads and common areas, the HOA can also do lawn work. This is where your lawn is also taken care of, without any intervention from your part, by the HOA. This falls within the scope of what you paid for, when you paid the HOA. They also keep the roads clear, which can be especially useful during winter.

Your HOA fees can also act as an insurance when any damage is done by any member of the community, to the common areas.

Pest control is also included, as is general security of the area.