Homeowner association communities are popular in the Lone Star State. According to the Fort Worth Star-Telegram, over 6 million people live in the state's 21,000 (and counting) HOAs.
If you want to own a property in one of the Fort Bend HOAs, you're probably getting ready to enjoy the many benefits that come with HOA living. However, those benefits come at a cost, mainly in the price of the property, and also, to a significant extent, HOA fees.
As an HOA homeowner, it's prudent to understand how this fee works, and why it's an integral part of HOA living. Read on for the details.
What Are HOA Fees?
An HOA fee is a fee paid by every property owner, typically on a monthly basis. It's separate from mortgage payments, property taxes, and other expenses that the owner might be responsible for.
The fee is set by the HOA's board, and can be revised from time to time depending on the needs of the association community.
What HOA Fees Cover
You must have noticed that in your HOA, there are assets that don't belong to anyone in particular. These include driveways, gates, clubhouses, parks, and swimming pools. They are communal assets, and thus everyone in the community is responsible for their maintenance.
The HOA pays for the repairs and maintenance of these communal assets from the HOA fee collections. The funds also cater for other expenses, including:
- Security services
- Cleaning services
- Garbage removal
- Pest control
- Community utilities like electricity, water, and internet.
A financially responsible HOA is supposed to maintain a reserve fund. When there's an emergency, like storm damage, the community taps into the fund to pay for the sudden expenses. Without the fund, the community would be left needing to raise money urgently to address the emergency, which isn't an ideal situation to be in.
What Happens If a Homeowner Fails to Pay HOA Fees?
Where bills are involved, late payments and defaults are inevitable. Many HOAs grapple with the issue of delinquent homeowners.
So, what's the worst that can happen if you skip a payment? After all, you legally own your HOA property and nobody has a right to kick you out because of non-payment of a fee that's not part of the mortgage.
Well, you may skip a payment, but it won't go unnoticed. You'll receive a notice of late payment from your HOA, and if you ignore it, the bill will be carried over to the next month. If you still don't settle your balance, HOAs have at their disposal tools to make you pay, the most powerful being a lien.
Once a lien is placed on your property, you can't transfer its ownership until you pay up what you owe.
It goes without saying that being a responsible member of an HOA community involves paying the fees dully.
Understand HOA Fees Before You Commit
Buying a home is a big commitment. An HOA home is an even bigger commitment because you have to take care of HOA fees for the rest of your ownership. Having a good understanding of how the fee works is key to making a smart purchase decision.
If you're ready to make the move, PMI Fort Bend is ready to guide you along the way. As a full-service real estate asset management company, we can help you with the purchase of an HOA property in one of the Fort Bend HOAs under our management.
Schedule a consultation for more information.
