What do HOA fees cover?

HOA fees are used to cover the cost of ongoing maintenance and repairs of common areas, equipment, systems and shared amenities, some examples include: lawn care and landscaping; water; plumbing and sewage systems; A/C and heating systems; electric system and lighting; trash removal; security system and gates; elevators; cleaning, painting and upkeep of exteriors and common areas; utilities for shared areas; pest control; exterior repairs and repairs of systems; maintenance of shared amenities, such as pool, fitness equipment and clubhouse; front desk and concierge services and cable TV and Internet. As an ancillary benefit, homeowners can use and enjoy community amenities such as swimming pools, tennis courts, gym memberships, parks and more. In addition, HOA fees are also used to pay for a master insurance policy to protect the community’s building structures, exteriors and community property against damage, as well as other insurance required. Fiscally sound HOAs allocate a portion of homeowner dues to a special long-term reserve account to cover renovations or repairs that do not occur regularly, such as repaving interior roads, etc. They also set aside contingency funds each month to cover unforeseen community expenses and emergencies. In addition, fees are used to pay for salaries of internal management, maintenance and janitorial staff members, as well as the services of a professional community association management company to manage operations and maintenance and enforce the Board’s rules and decisions.