If you are currently looking into purchasing a home in a planned community, you are not alone. Arizona ranks tenth among U.S. states for neighborhoods with homeowners’ associations (HOAs) due to the benefits and amenities residents enjoy.
However, even if you have only done minimal research, you probably know that HOAs and HOA property management services charge fees or assessments for these features. Despite widespread misinformation, these costs are very reasonable considering the advantages they offer. Still, you should understand how HOA fee structures work to realize the benefits you are receiving as a resident of a planned community.
What Do HOA Fees Cover?
All HOAs must collect assessments to cover the costs of operating the neighborhood, including maintenance of common areas, landscaping, pool services, and other potential amenities. There are also charges for enforcing HOA rules, provisions in governing documents, and the declaration of covenants, conditions, and restrictions, commonly referred to as the CC&Rs.
All homeowners reap the benefits from these services, so the HOA must pass along these expenses to them. Usually, regular assessments are paid on a monthly or quarterly basis. They may fluctuate from year to year to account for rising costs.
How Special Assessments Work
In the event of an emergency, such as urgent repairs to common areas or amenities, or an unexpected large expense, the HOA’s board of directors may request homeowners to approve a special assessment in addition to regular dues.
The percentage of homeowners necessary to assent to special assessments varies according to your governing documents. If approved, the amount will be levied and is typically spread out over several months.
Fines for Noncompliance
There are fines for violating HOA rules or CC&Rs, and these are typically collected immediately as a lump sum but commonly after a first warning that carries no monetary penalty. Examples of noncompliance may be overnight parking in the street, having a trailer in your driveway, not taking care of maintenance on your home, failing to properly landscape, or violations of noise ordinances. Noncompliance has negative consequences for the entire community, so fines make a good incentive to homeowners to keep their properties in good shape.
Late Fees
Residents who do not pay regular assessments on time will be charged a late fee, which is also an advantage for the neighborhood due to a sense of fairness. One homeowner should not be able to get away with nonpayment and have access to amenities that the rest of the community is funding.
HOA Fees Can Affect Property Rights
Residents who fail to pay assessments may face a lawsuit or a lien on their property, which can affect their property rights. For the rest of the community, this can be a fortunate development. A homeowner who violates rules or fails to pay their fair share brings the rest of the neighborhood down.
Arizona HOA Property Management Services Optimizes HOA Fees
For more information on HOA fee structures and the benefits they offer homeowners, please contact City Property Management Company at 602.437.4777. We can tell you how these fees apply to various maintenance tasks, improvements, tax matters, and other necessities of an HOA. You can also learn more about our services for HOAs by visiting our website.
