What does an HOA (Homeowners Association) fee include?

illustration hand picking a house out of a bunch of housesNot all HOA fees are created equal. The fees vary widely by Homeowner Association (HOA) & depend on the size of the community & the type of amenities provided.

Some possible items include:

  • Maintenance costs for common areas (community pools, community center, etc.)
  • Insurance related to the common areas & association
  • Security costs for the association (not the individual homes)
  • Payroll for any HOA employees
  • Fees paid to an outside property management company
  • Entry gate & security guards
  • Basic cable fees
  • Costs of running the association, professional fees, bookkeeping, etc.

Read the association documents to be clear about what is covered. It is also important to review a copy of the HOA budget so you can see how your HOA fee money is being spent.

When you apply for a mortgage, the HOA fee is included in the calculation of your monthly housing costs, along with your mortgage payment and real estate taxes. This affects your qualification for your mortgage.

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