About 25% of the U.S. lives in an homeowner association (HOA), according to the Homeowners Protection Bureau, LLC. If you’re eyeing a new home with an HOA, let’s explore what you need to know about living in an HOA community before you take the homebuying plunge. 

What is an HOA?

An HOA, or homeowner association, is a legal entity, like a community government, typically set up by the builder to manage shared amenities and ensure everyone follows the rules. HOAs spell out the community rules in a document commonly called the “Declaration of Covenants, Conditions, and Restrictions” (or “CC&Rs”), and they help keep the neighborhood looking nice and running smoothly. Of course, there's a price to pay for all this organization, and homeowners chip in by paying fees. 

What Do HOA Fees Cover?

Picture living in a community with perfectly manicured green spaces, sparkling swimming pools, and pristine tennis courts. You might not have to worry about hiring landscapers or maintaining those amenities yourself because your HOA fees cover it all. However, not all homeowner associations are the same, so it's essential to understand exactly what your fees will cover before committing to a community. With Pulte, you can contact a community’s New Home Specialist to get the specific information you need through a phone call, online chat, or by filling out a form.

If you’re considering buying a townhome or condo instead of a detached home, that comes with a perk. You could potentially have your exterior maintenance costs covered. Yep, you read that right. If your building needs a new paint job or a roof replacement, your monthly dues might take care of it, removing the hassle from your plate while you get a stunning exterior without lifting a finger. Consider it like having a personal stylist for your home. You get to put your feet up, relax, and let the HOA handle it.

What Are the Benefits of an HOA?

Joining a community with an HOA has a lot of benefits. It helps to ensure your community stays picture-perfect. Drive through an HOA neighborhood, and you'll likely see stunning homes with matching exterior hues and no unsightly clutter in driveways or yards. Living in an HOA-managed community allows you to connect with your neighbors and create a charming, inclusive environment for everyone to enjoy.

Are HOA Fees Mandatory?

Most communities with an HOA have a mandatory fee. However, there are exceptions to the rule. In some places, you may have the option to pay a small fee for access to amenities like the neighborhood pool. Just keep in mind that the neighborhood may not be as well-maintained compared to other active associations. It's always wise to weigh the trade-offs before making a decision. After all, it's not just about the pool; it's about the overall community experience.

When buying property in a planned development, here's a tip: give the CC&Rs a good read. This way, you'll know whether those fees are mandatory or not and, more importantly, what consequences you'll face if you don't pay up. When budgeting and deciding whether a property is right for you, factor in the fees; it's always better to be in the know, especially financially. 

Can HOA Fees Go Up?

Before purchasing a property, ask about the HOA’s fee history because fees can be increased, and nobody likes a surprise expense. Do your due diligence before signing on the dotted line; find out how often fees were raised in the past and by how much. 

Ask about the frequency of assessment fees, too. Sometimes property owners can be hit with an unplanned HOA expense, like unexpected roof repairs or parking lot maintenance, which may incur an assessment fee. If those one-time assessments occur too frequently, it could be a sign the association isn't managing its finances properly.

Do HOA Fees Ever Go Down?

In a nutshell, the answer is no; fees typically don’t decrease. Home maintenance, insurance, labor, and sewer costs never remain stagnant, so you should prepare for an increase in fees as well. To plan your expenses smartly, dig up the HOA records for the past five years and look for patterns to anticipate costs in the future.

Also, as you go through the process of getting a mortgage, factor in your HOA fees. This way, you’ll have a clear and comprehensive picture of your monthly expenses before committing to a home. After all, knowing the details of your house payment is the key to a stress-free homebuying journey. 

Can You Negotiate HOA Fees?

Negotiating HOA fees might not be the smartest move. While you may think that getting a bargain on HOA fees would be a win, in reality, it could throw off the balance of the community. The maintenance and upkeep of the area depend on the consistent and reliable collection of fees from all members. If some people score a deal, others may end up overpaying their share, which doesn’t make for a very neighborly community. 

Do Renters Pay HOA?

If you're a homeowner, paying the homeowner association dues is your responsibility. However, if you're a savvy landlord, you can pass on this cost to your renter by including a clause in your rental contract so renters cover any CC&R fines or violations. Just be sure you're not violating any CC&Rs yourself before leasing your property. After all, rules and regulations are part of every community, even the one you call your own.

Do You Pay HOA Fees Monthly or Yearly?

Find out, in advance, how much you'll need to pay and when, whether you're living it up in a townhome or settling into a sprawling single-family dwelling. Generally, homeowners pay dues on an annual or semi-annual basis, and townhome and condo dwellers are expected to contribute monthly. Also, keep an eye out for the occasional landscaping fee. Make sure you're in the know to avoid any dues-related surprises.

Now that you know all about HOAs, you’re prepared to understand what an HOA might include in your next new home community. Discover stunning floor plans and check out Pulte's new home communities today!