HOW ARE HOMEOWNERS ASSOCIATION FEES DETERMINED?
In general, homeowners association (HOA) fees for a property are determined by the location, community amenities, services offered, and property size.
LOCATION
HOA fees are typically higher in areas with a higher cost of living, because materials and labor are more expensive.
COMMUNITY AMENITIES
Swimming pools, gardens, playgrounds, tennis courts, etc. require upkeep. The more amenities a community has, the more the HOA fee will be in order to cover this maintenance.
SERVICES OFFERED
When communities offer services like snow removal, lawn mowing, trash removal, internet/cable, and water, the association uses money from the HOA fees to cover these costs.
PROPERTY SIZE
Larger properties within a community typically have higher HOA fees. For example, in a condominium building, a one-bedroom unit will have a lower fee than a two-bedroom unit.
Part of the HOA fee also supports a reserve fund which is used in emergencies and to support long-term maintenance projects. The HOA may tap into it when it needs to repair roofs, elevators, sidewalks, etc. If there are expensive projects on the horizon, the HOA fee may increase.