Questions About Your Homeowners Association

Expand all Collapse all

• What is a Homeowners Association?

  A homeowners association (HOA) is a non-profit corporation governed by a Board of Directors who agree to cover certain expenses of the neighborhood or community. HOAs establish community rules and help maintain the area and Members of the community pay a monthly fee which is used to fund the maintenance and expenses. While the exact coverages and services provided in a townhome or condominium community will vary, there are generally several common services and amenities that are covered.People who purchase in an HOA automatically become members of the Association and as such, are required to pay their dues through monthly, quarterly, semi-annual, or annual fees and are bound by the deed restrictions which are part of the title deed to the home. These deed restrictions are outlined in the governing documents of the HOA, usually the Covenants, Conditions and Restrictions (“CCR’s”), Bylaws, Policies and other Dedicatory Instruments adopted and recorded on behalf of the HOA.HOA fees paid by townhome and condominium Owners will usually cover the costs of maintaining items like those sampled in the list below. This is not an exhaustive list and it in no way implies that your Association provides these services. The list is a guide only and every Owner should personally refer to the “maintenance chart” located in every townhome community CCR’s or for condominiums, refer to the condo map and the CCR’s for the guidance needed.

  • roofs (usually the outermost portion from the parapet paper outward)
  • Exterior buildings (usually outer most shell called the “skin.” Owners are responsible for ALL the interior of their units generally from the studs inward).
  • Periodic Window Cleaning and/or Caulking
  • Utilities (utilities for common areas & amenities only)
  • Waste Services (varies)
  • Patios (varies)
  • Landscaping
  • Exterior stairs
  • Elevators
  • Lobbies (condos only)

  As mentioned, the above is just a general list and in no way implies the HOA where you live covers all these features. You will need to refer to your CCRs and/or maintenance chart to see what your HOA covers versus what you as the Owner are responsible for maintaining and covering.

• What a Homeowners Association Covers in a Townhome or Condominium.

  Townhomes and condominiums can offer an easier way of life for many families, and they are great for suburban living. Townhomes and condominiums often have a traditional house appearance but with a shared wall, and they often are found in communities with shared amenities. Because townhomes and condominiums have shared areas, they have a homeowners association to help maintain certain aspects of the community.

• Common Areas and Exterior Maintenance.

  Townhome communities usually have common areas such as pools, fences, entryways and signage, and other common general grounds. Through the guidance of a Board of Directors, the community HOA will maintain these amenities to ensure the neighborhood looks respectable and residents can enjoy all aspects of it. In addition, HOAs often help maintain the exterior of the homes and roofs of townhomes and condominiums, and may also include lawn and/or irrigation repairs. HOA fees also often cover the cost of city services, including trash removal, water, and sewerage. Utilities for common areas and amenities are automatically paid for by the HOA.

  The association may also levy from time to time varying types of special assessments if its operating and/or reserve funds (funds set aside for major and/or emergency repairs) are not sufficient to cover the HOA’s responsibilities and needs, including major repairs and other unforeseen circumstances.

• Protection Against Incidents and Pests.

  Many HOAs will offer insurance that covers damage to the outside of the building due to weather events or other unforeseeable circumstances. In addition to this protection, HOAs will often offer monthly pest control services in order to fend off potential infestations.

  Some homeowners associations can be very restrictive about what members can do with their properties. These rules are written in the CCRs or varying policies. All Owners should understand that when you purchase a home in an HOA you are agreeing to the deed restrictions set forth in the HOA’s governing documents and failure to abide by those rules and pay those fees carry with it penalties the same as you would see if you failed or refused to pay your monthly mortgage on your home.

• Criticism of HOA Fees.

  The main problem that people have with HOA fees is the cost. As mentioned above, the amount of HOA fee you pay can vary and this is, of course, based on the type of property or HOA you live in, and its responsibilities and the amenities involved. Owners may even face higher fees if the reserve fund is not properly funded. An Owner needs to keep in mind that to properly fund a reserve, the assessment paid each month by the Owners is the resource used to fund a reserve. If there are insufficient funds to maintain even the general operating account sufficiently, there would be no funds left over to then fund a reserve. If the amount of dues collected is insufficient a special assessment of some kind, depending on your HOA’s CCRs can and usually will be levied by the Board to collect the needed shortfall.

• What is the average range for HOA fees?

  HOA fees vary drastically from HOA to HOA, but some estimates claim these fees range from $200 to $500 per month or more depending on the size of the development as well as the number of common assets and other responsibilities each HOA faces. For instance, an HOA that has only 100 homes and has a large amount of common area grounds and amenities resulting in significant monthly payables and responsibilities to the HOA is going to have a much greater assessment than the same HOA having 1,000 homes due to the size. Average monthly expenses for a townhome or condominium HOA as of 2024 ranges on average $30,000 to $100,000 per month depending on the HOA. Insurance alone the HOA must carry will range anywhere from $110 to $300 per month or more per townhome or condominium unit, depending on the size, type, style, location and other similar considerations.

• Why are HOA fees higher in some areas?

  Since HOA fees pay for the amenities and maintenance in a community, those prices will vary from place to place. The cost of living and going rate for certain services will certainly have a bearing on the costs an HOA can incur year over year. Over the last five years there has been a steady rise in costs such as utilities, landscape, insurance, pool services, as well as postage, supplies, and many other general maintenance items. The more it costs to run and maintain an HOA, the more the assessment will be in order to ensure the HOA has the money it needs to perform its responsibilities and to set aside reserves.

• The Bottom Line.

  HOA fees are charges levied on Owners living within an HOA. These fees cover a myriad of maintenance responsibility and upkeep of common areas or elements. Owners who own a home in an HOA cannot exclude themselves from paying assessments. All Owners (sometime excluding Declarant) pay mandatory HOA dues.

• What is the Board of Directors and what do they do?

  The Board of Directors is established in the Declaration of Covenants, Conditions and Restrictions to act as the governing body responsible for making decisions, establishing policies, enforcing rules and regulations and deed and use restrictions and is responsible for the collection of assessments.

• What are the deed restrictions and do I have to abide by them?

  Deed restrictions, are rules that govern the association and its members. The deed restrictions and architectural controls set forth in the Declaration of Covenants, Conditions and Restrictions ensure the preservation of the original architectural design. For example, “Owners must keep fences in good repair…” You will receive a copy of the Declaration of Covenants, Conditions and Restrictions for your Association from the title company when you close on your home. To receive an additional copy, please contact your property manager at Essex Association Management at (972) 428.2030. Please be aware additional fees maybe required.

• When does the association hold meetings?

  The association’s Bylaws set the guidelines for when Annual meetings and Board meetings are to be held.

• What do my dues pay for?

  The dues paid are used to operate the association’s business. For example, there are utilities that operate irrigation and lighting in the community. The “common areas” owned by the association must be maintained, so contractors are hired to maintain the landscaping and other amenities. The association carries general liability, property and Director’s/Officer’s liability insurance to protect the association’s assets and Board of Directors. In addition, the association pays a management company to collect dues, pay expenses, maintain the financial records, communicate with owners, supervise contractors and so on. There are taxes the association is responsible for, and the association should always plan to set aside funds for future repair or replacement of the associations capital assets.

• Do I need approval to make exterior improvements to my property?

  Yes. Any alterations or additions to the exterior of your property must be approved in writing by the ACC.

• What if I make changes to my property without ACC approval?

  Everyone must seek ACC approval in writing prior to making external changes to their property. If you make changes without prior approval, your investment could be at risk. Additionally, if your modifications are outside the guidelines of the ACC you may be required to remove or reverse the improvement(s).

• If I get a building permit from the city, do I still need ACC approval?

  Yes. Approval from the city does not constitute approval from the ACC. The committee still requires that your plans be submitted in writing for review.

• If the ACC approves a modification for my neighbor, can I assume that the same modification will be approved for me?

  No. Each property and project is different. Applications are reviewed based on the individual characteristics and circumstances for each property. Always get ACC approval before making changes to your property.

• Who do I call to report problems in the community?

  Please report problems to Essex COA Management at 972-428-2030. All reports remain anonymous.