Homeowners' Association (HOA) fees are a common aspect of many communities, but their purpose and components can sometimes be confusing for homeowners. In this blog post, we aim to demystify HOA fees by providing a comprehensive overview of what they cover. Understanding these fees will help homeowners make informed decisions and appreciate the value they bring to the community.

Maintenance and Repairs

One of the primary purposes of HOA fees is to cover the maintenance and repairs of shared community areas. This covers landscaping, common area upkeep, building exteriors, etc. Explaining how these fees contribute to the overall aesthetics and functionality of the community will help homeowners understand their importance. In an article from Investopedia, it explains how HOA fees may be more expensive in high cost areas like NYC, “In high-cost-of-living cities like New York City, even basic maintenance will be more expensive than in low-cost-of-living cities because of higher minimum wages, power costs, and/or taxes.”  

Amenities and Facilities

HOA fees often go towards the maintenance, operation, and insurance of community amenities and facilities. This section will highlight popular amenities like swimming pools, gyms, playgrounds, tennis courts, or clubhouses, explaining how their upkeep and accessibility are financed by the fees. Homeowners can gain a deeper appreciation for the convenience and value these amenities bring to their daily lives.

Utilities and Services

HOA fees can also cover various utilities and services that benefit the community as a whole. This section will discuss common examples, such as garbage collection, water and sewer fees, street lighting, and security services. Explaining how these shared expenses are efficiently managed through HOA fees can help homeowners understand the collective benefits and cost-effectiveness.

Insurance 

HOA fees typically include insurance coverage for common areas and shared structures. This section will outline the types of insurance provided, such as property and liability insurance. Homeowners will gain insight into the importance of this coverage, ensuring they are protected from unforeseen events and liabilities that may arise within the community. Quicken Loans says your HOA is required to carry insurance for injuries sustained in or damage to areas within the purview of the HOA, such as common spaces, recreational areas or other exterior locations, like sidewalks, that the HOA is required to maintain. The article also writes that you will need an individual insurance policy to cover everything you are responsible for. The lender will require the homeowners insurance to cover damages to your property. 

Administrative Expenses
A portion of HOA fees is allocated to administrative costs, which encompass various services required to manage the community effectively. This section will touch upon expenses like accounting, legal fees, property management, and other administrative functions. Understanding these costs will shed light on the professional management and organizational aspects of the HOA. According to Investopedia, some HOA fees can range from $100 to $1,000 per month, with the average ranging from $200 to $300. The amount is based on the property and the amenities it has. 

Moving to Hudson County? Hoboken, Jersey City, Weehawken, Union City, West New York? Shoot us an email at jill@jillbiggsgroup.com or give us a call at (973) 495-6038!