Texas has over 20,000 homeowners associations with an estimated 5.5 million residents. Property owners can't choose not to be a part of the association. They must pay dues and fees to maintain common areas like pools, parks, and gardens.
The association can issue a notice of delinquent assessment and impose fines if someone doesn't pay. They can also put liens on your property and take you to court if you don't pay.
Despite HOA fees, the number of homeowners associations in Texas will only keep growing. The demand for planned communities makes it nearly impossible for real estate developers to side-step HOAs.
If you're looking to buy a home in Coppell, Texas, you should understand everything there is to know about HOA fees and laws. Keep reading for a quick overview.
What are HOA Fees?
If you're considering moving into a community that the homeowners association governs, you may already expect to pay HOA fees. What you may not know is how much those fees will cost you.
You must pay HOA fees monthly to keep your amenities and common areas in good condition.
When you're looking for a HOA community, make sure to check out the amenities and rules that the community has to offer. That way, you can ensure you're getting the best service for your lifestyle.
Who Determines the Fees?
Although the state sets the HOA limits, the HOA Board members set the fees residents pay. HOA fees can range from $10 to $600 a month. Fees for single-family homes are generally less than condominiums or townhomes.
Condominiums and townhomes have higher fees because they need more money in reserve just in case something goes wrong with one of their properties.
If you're looking to buy a home, you should also ask about special assessments. A special assessment is something that happens when there's a planned project in your community.
Fee Increase
Assessments and increases will be presented to homeowners at HOA meetings. In most cases, they vote to implement changes.
Under Texas law, HOAs can raise HOA fees as long as they can justify the increase. HOAs have some leeway in the area and can raise rates if necessary to preserve the residential community.
What Does the HOA Fee Cover?
There are different services that HOA fees cover. They can include the following:
- Amenities and services
- Association Insurance
- HOA Property Maintenance
- Maintenance and repairs
- Reserve fund
You could also face fines in addition to your monthly fee. Failure to pay fines can include costly penalties.
In Texas, HOA evictions are not permitted. However, the HOA board can place a lien on your home and foreclose on the lien if you don't pay.
Is an HOA Right for You?
HOA fees can determine whether a buyer can afford to buy in their ideal community. If you are on the board of an HOA, you may be considering contracting with a property management firm.
Coppell Association Management provides property managers, HOA property maintenance, and owner portals.
We'd love to talk to you about our services.
