Definition
Homeowners’ fees, alternatively called maintenance fees, are regular dues that members of a Homeowners Association (HOA) are obligated to pay. These fees are used to maintain communal areas, services, and amenities within a housing development or condominium complex. Typically, this payment is on a monthly or quarterly basis and covers various expenses, including landscaping, security, community events, and repairs to shared facilities.
Examples
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Residential Housing Subdivision: A suburban subdivision may have an HOA that charges a $150 monthly fee per household. This fee covers the maintenance of communal parks, playgrounds, clubhouses, and swimming pools within the subdivision.
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Condominium Complex: In a condominium complex, residents might pay $200 per month. This amount covers not only the maintenance of shared building areas such as lobbies and elevators, but also landscaping, waste disposal, and security services.
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Gated Community: In a gated community, homeowners might be required to pay $300 quarterly. These fees contribute to maintaining the entrance gates, private roads, street lighting, and community fitness center.
Frequently Asked Questions (FAQs)
What do homeowners’ fees typically cover?
Homeowners’ fees cover the costs associated with maintaining shared spaces and amenities. This may include landscaping, waste management, security, repairs, insurance for common areas, and community improvements.
Are homeowners’ fees mandatory?
Yes, homeowners’ fees are mandatory for all members of an HOA. Failure to pay these fees can result in penalties, including fines and legal actions, such as liens on the property.
Can homeowners’ fees increase over time?
Yes, homeowners’ fees can increase over time based on budgetary requirements approved by the HOA board. Factors like inflation, increased utility costs, and capital improvements can lead to higher fees.
Are homeowners’ fees tax-deductible?
Generally, homeowners’ fees are not tax-deductible for individual homeowners. However, there may be some exceptions, such as when a portion of the fee is used for services that would otherwise be tax-deductible, like certain repairs or maintenance.
Who sets the homeowners’ fees?
Homeowners’ fees are set by the HOA board. They budget for necessary services and maintenance for the community and determine the required fee amount to adequately cover these expenses.
Related Terms
- Homeowners Association (HOA): An organization within a subdivision or condominium that enforces rules and regulations for residents and maintains common areas and amenities.
- Special Assessment: Additional charges levied by the HOA for unexpected costs or major projects, such as roof repairs or significant upgrades to shared facilities, beyond regular maintenance fees.
- Condominium Fees: Similar to homeowners’ fees, these are charges paid by residents in a condominium complex for the upkeep of shared areas and services.
- Common Area: Areas within a residential community or condo complex owned jointly by all residents, such as hallways, lobbies, gardens, and recreational facilities.
Online Resources
References
- “The Community Association Handbook,” by Clifford J. Treese
- “Homeowners Associations & You: The Ultimate Guide,” by Marlon Green
- “The Law of Property Owners Associations,” by Wayne S. Hyatt
Suggested Books for Further Study
- “The Homeowner’s Association Manual,” by Marc W. Dunbar
- “Complete Guide to Homeowner’s Associations: What You Need to Know,” by Charlotte H. Valentino
- “Creating Harmony: Managing a New and Diverse Community,” by G John Bond Ares
