BASIC HOA TERMS & DEFINITIONS (CONT)
HOA FEES
HOA fees, sometimes referred to as assessments, are
collected on a monthly or yearly basis. The amount
can vary, but the average monthly HOA fee in the U.S.
is around $300 according to data from the American
Community Survey. These fees cover community
responsibilities like insurance, landscaping, and
maintenance, and they contribute to the HOA reserve
fund.
HOA RESERVE FUND
The board is required to fund a reserve account
for the community, which is collected to cover
necessary capital improvements including parking lot
resurfacing, new roofs, painting, and more.
HOA TRANSFER FEE
When you purchase a home or condo that's part
of an HOA, you may have to pay an HOA transfer
fee. Transfer fees are different from the monthly or
yearly fees owners must pay and cover the cost of
documenting new ownership and sharing all the
necessary documents with the new homeowner. The
average transfer fee is around $250.
SPECIAL ASSESSMENTS
Special assessments are additional fees that
are typically used to pay for budget shortfalls
or unexpected costs. A board must vote on an
assessment before charging homeowners additional
fees.
HOA FINES
When an HOA rule or regulation is violated, a fine
can be issued. HOA fine amounts depend on your
community's governing documents and other local
and state laws that regulate fees.
