Definition: Homeowner’s association fees or HOA fees is the amount of money that every member of the homeowner’s association must pay monthly. This is the monthly obligation for people being part of a homeowner’s association, which is the name given to the organization that take care of goods shared by neighbors.
What Does HOA Fee Mean?
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Homeowner’s associations look out for maintaining, repairing and improving common areas or goods that are used or enjoyed by all neighbors within certain community. This association has the responsibility of setting the fee, collecting the money, deciding about how it will be disposed and implement those tasks. Activities carried out by the association create better living conditions for all members but also preserve property value.
The organization also creates and communicates rules that all members must follow in relation to the properties and the use of common areas. Fees are often charged to condominium owners but could also apply to single-family homeowners in certain areas because of the existence of common amenities such as sport courts, parks or clubhouses. In a building, the fee will be used to maintain and repair elevators and shared spaces, for example.
In other neighborhoods with single-family houses the association also imposes rules about the external house appearance in order to maintain a unique style and guarantee a harmonious landscape. For example, the property owner or tenant should typically paint its external walls and provide maintenance for his garden according to certain common rules.
Example
Mr. and Ms. Lanson recently purchased a new house in a beautiful neighborhood in Florida. They come from living in a country house in a rural area so they are positively surprised by the attractive common spaces such as the small lake, large green grass areas, a park for children and a special space for people wanting to do jogging and fitness.
They love the entire neighborhood and think that all houses are really nice. Before making the purchase, the seller clarified that Mr. and Ms. Lanson must pay a homeowner’s association monthly fee since they will contribute with the money required to maintain all common areas.
