Membership fees that must be paid by an owner of property within a homeowner association’s jurisdiction. HOA fees are collected to pay for maintenance and improvements of properties owned by the association, including common areas or necessary features such as roofing or elevators. HOA fees are very common in condominium developments, but can exist in neighborhoods of single family homes.
Depending on the size, location, and amenities of the property, HOA fees can range from a few dollars to thousands of dollars. Often times fees are split into two buckets, with one paying for monthly expenses and the other allocated towards a reserve fund. While monthly expenses include basic maintenance, money allocated the reserve fund will be used for long-term improvements or emergency repairs.