When looking at homes for sale in
St. Louis and St. Charles County, Missouri you may notice “association fees” in
the listing details. So what are these association fees? They are monthly or
yearly dues to the homeowner’s association for the community where the home is
located.
What is a homeowner’s association?
A homeowner’s association (HOA) is
an organization within a planned community that creates and enforces rules for
homeowners within the community. They are usually setup as 501(c)(4)organizations that collect dues to be distributed to maintain the community. If
you purchase a home in the community, you automatically will be responsible for
paying the association dues.
What does a homeowner’s association do?
Homeowner’s associations oversee
and enforce a community’s covenants as well as assist in maintaining the
quality of the community. This can include but is not limited to: maintaining
common areas, sidewalks, streets, community clubhouse, community pool and
playground equipment. They hire and distribute funds to the contractors that do
the work. Also the association has to purchase and maintain insurance for
community amenities covered by the HOA.
Are homeowner’s associations
common?
According to the Foundation for
Community Association Research, “the number of Americans living in HOAs is on the rise, growing from a mere 1%
in 1970 to 1 in 4 today.” So they have become quite common as a way
for communities to be maintained and keep home values at a premium.
How are homeowner’s association fees determined?
The board of directors of a
homeowner’s association determines the amount of the fees. They do this by
determining the projected annual expenses of the association and dividing by
the number of homes. Board members are
usually homeowners from the community that volunteer and do not profit from HOA
fees. In fact, they too will have to pay the HOA fees sometimes called assessments
or maintenance fees.
How do I find out what a homeowner’s association covers for a community?
Each association has its own unique
rules and policies. If you are planning to buy a home in a community that has a
homeowner’s association, it’s important that you read the community’s
covenants, conditions and restrictions (CC&Rs) and bylaws. If the listing
agent doesn’t provide these with the listing documentation, be sure to request
them so that you know before you buy.
Generally homeowner’s associations
offer a benefit to those living in the community. Combined funds keep the
community maintained, home values up and offer the option to have a swimming
pool, tennis court or other benefits that an individual homeowner may not be
able to afford and maintain on their own. The Boehmer Team has helped many
homebuyers who found the home of their dreams in a community with a homeowner’s
association. In addition we’ve helped many sellers living in HOA communities
sell their homes. We know the in’s and out’s of HOA’s and are ready to help you
with your real estate needs even if they involve a homeowner’s association.
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