Every piece of the monthly housing cost, itemised
HOA and condo dues
In short
HOA and condo dues are usually paid to the association, not the lender, but lenders count them in your housing costs and so should you. Before buying, read the association's budget, reserve information and any planned special assessments, because a thin reserve can mean bigger bills later.
Last reviewed against the primary sources listed below.
What dues cover
- Shared areas and amenities.
- Sometimes building insurance, water or trash.
- Contributions to a reserve fund for future repairs.
Documents to request
- The current budget and reserve information.
- Minutes from recent board meetings.
- Notice of any special assessments.
- The rules on dues increases.
Associations and borrowing
Associations can borrow or levy special assessments for large repairs, which owners then pay.
Line-item questions
What is a homeowners association?
An organisation that manages shared property and rules in a community, funded by dues from owners.
Can a condo association borrow money?
Many can, depending on their governing documents, and owners usually repay it through dues or special assessments.