Dear Pam,
We are new homeowners and this is our first time living in an HOA. Can you please explain what our monthly association dues cover?
That’s a great question and one that we often find ourselves reviewing with new homeowners. Your HOA dues cover a wide range of expenses, and this will vary depending on the approved budget items and amenities within your community. All associations have operating expenses and in addition, they set aside money in a reserve account for future capital expenses and repairs. The operating account covers the day-to-day expenses and they include such things as contracted services (landscaping), common utilities, common insurance, association amenities (pool, clubhouse, etc.), and maintenance and repairs to common areas. In addition, it is a State requirement to have a reserve account and save money to properly maintain all building aspects as the components reach their life expectancy and to protect against any unforeseen emergency repairs.
Best,
Pam