Why are there association fees anyway and what do they cover?
Insurance is generally one of the pricier items the typical HOA fees pays for. These fees also cover upkeep and maintenance for the structures, grounds, common areas, parking structures and or parking lots and recreational facilities. In addition, the HOA fees will need to pay for management staff, security, and the lighting, heating and cooling of common areas. Water, sewer and trash and pest control are typically included, and many condominiums also pay for basic cable.
Every year the budget is established to cover the cost for all the items included in the HOA fee and is divided among the owners by the number of units or square feet. These dues are generally collected monthly, but some associations may stipulate quarterly or annual payments.
The HOA can levy a special assessment when the association lacks sufficient reserves to pay for unexpected repairs or when it feels the reserves on hand may be too low to cover a potential major expenditure. This “special assessment” can be levied in two ways; as a lump sum payment or can be pro-rated monthly basis and added to the current fees.
Most people associate condominiums with HOA fees, but home owners associations can also apply to single family homes and town homes. PUD’s or planned urban development’s often offer amenities like swimming pools, tennis courts, golfing or even marinas that are managed and/or maintained by the management of their home owners association.
Your HOA may also have the legal power over rules that govern what is allowed or not for a particular condominium. For instance, some common rules may pertain to pets, the kind and size, the types of rentals that are allowed, noise, parking rules and other behaviors, practices and conduct. More neighborhoods are going smoke free than ever before. Home owner association rules and regulations must be disclosed to potential buyers by Florida law. If you are interested in a specific neighborhood ask your realtor to assist you in getting a copy of the rules and regulations for that HOA.
