Demystifying HOA Fees: What Do They Actually Do? With more and more homeowners coming to Texas Homeowners' Association (HOA) and HOA fees are a common aspect of of owning a new home, even in Texas. If you had not lived in an HOA they can be a point of contention for some homeowners, however they serve a vital role in maintaining the quality and community standards of residential neighborhoods. They help keep the HOA running even when they are a pain. So let us explore what the HOA fees are and some of what what they typically do. What are HOA fees? Homeowner Association fees, also called HOA's assessments, are payments whether they are monthly, quarterly or annually which are the homeowner pay the the HOA in order to keep the HOA financially afloat. The details of when to pay your dues are laid out in every HOA's governing documents. The dues are used to cover various expenses from maintenance and management of the community to utilities and reserve funds contribution to name a few. The HOA Board uses these to ensure the HOA remains an functional and attractive place to live. What Do HOA Fees Cover in Texas? Common Area Maintenance: HOA fees go towards the upkeep of common areas like parks, playgrounds, swimming pools, and community centers. Making sure the common areas, where outdoor amenities are, look and function appropriately this is a necessary priority. Landscaping and Lawn Care: Texas's ever diverse and changing climate means that landscaping and lawn care will be a significant portion of HOA expenses. From April and May downpours to July and August streaks of 100+ degrees the major swing of weather charges a heavy toll on the landscapre. These funds ensure that communal green spaces remain well-maintained year-round. Security and Gated Communities: For gated communities and neighborhoods with security services, the assessments cover the costs of personnel, surveillance equipment, and security measures to keep residents safe. Trash Removal: Many HOAs in Texas arrange for trash and recycling services which the city they live in does not cover. You want to ensure that waste collection is efficient, uniform and timely throughout the community. Both your eyes and nose will thank you. Exterior Maintenance: Depending on the Governing Documents, HOA fees may cover exterior maintenance of homes, including painting, roofing, and repairs to maintain a consistent appearance and structural integrity throughout the neighborhood. This is essential in the running of Condos. Insurance: The HOA needs to carry insurance policies that cover common areas and structures. These policies can help protect the HOA from liability and ensure the repair or replacement of communal facilities in the event of damage does not fall on the homeowners. Administrative Costs: HOAs have administrative expenses, such as legal fees, accounting services, hiring of a property management company, or the pay the salary of management personnel who are on site overseeing the community's yearly operations. Amenities: Some Texas communities offer additional amenities like golf courses, clubhouse gyms, tennis or even pickleball courts to name a few. HOA fees often contribute to the maintenance and operation of these facilities. Rule Enforcement: HOAs are responsible for enforcing community rules and regulations. The fees support the costs of monitoring compliance, addressing violations and send notices to those in violation when necessary. Reserve Funds: HOAs need to allocate a portion of the fees to a reserve fund as this is essential. A reserve fund is used for unexpected repairs, emergency maintenance, earning interest in a money market account or the future community projects which can and will inevitably happen.
HOA fees in Texas serve a vital role in maintaining the quality of life as well as the property values within planned communities as well as keeping property values high. While some homeowners may view these fees as an additional expense, they help ensure that neighborhoods remain attractive, safe, and running smoothly. Understanding what HOA fees cover can provide clarity and peace of mind to homeowners as they contribute to the overall well-being of their community. If you have any questions regarding HOA fees reach out to us at PMI Cross Timbers and we would be happy to shed some light on this. |
