Homeowner associations oversee various aspects of the community and require each homeowner to pay dues.
Who Pays Property Taxes if You Live in an HOA?
In short, HOA fees do not cover property taxes; these are separate obligations as a property owner.
Property taxes are paid to the city government, while HOA fees are paid to the managing bodies of the community. In some instances, HOA fees might cover the extra taxation for shared amenities in a condominium complex.
If a homeowner does not pay their HOA fees, the HOA can put a lien on the property and seek foreclosure.
Homeowners Association (HOA) fees are regular payments that residents within a community make to help manage and maintain common areas and shared amenities.
These fees are essential for the upkeep of community infrastructure, and to ensure the community remains a desirable place to live. They are typically collected monthly, quarterly, or annually.
The cost of HOA fees can vary widely based on the location, size, and type of the residential community, as well as the range and quality of amenities and services provided. Condominium or townhouse HOA fees could be a few to several hundred dollars a year. Fees for single-family homes can be lower but depend greatly on the community and services offered.
What do HOA fees cover?
HOA dues cover services that benefit the property’s common areas as well as owners’ interests. Owners in HOAs pay dues in addition to the property taxes and homeowner’s insurance for your own property.
Your HOA dues will pay for common services such as trash and recycling removal, landscaping, pest control and maintenance of certain common areas (learn more in our post on why HOAs exist).
It typically also covers insurance over those common areas and assets. Building exteriors, roof leaks, pools, clubhouses are examples of assets that may be insured and maintained by the HOA.
If HOA dues are not sufficient to maintain reserves for major repairs, such as roof replacement, owners may face a special assessment (aka special levy). These special assessments are also in addition to regular HOA dues.
Recommended Reading: What are the HOA Documents You Need for Closing?
What do property taxes cover?
Property taxes are payments made to the local government, calculated based on the assessed value of your property.
Unlike HOA fees, which fund community-specific amenities, property taxes support broader public services such as schools, infrastructure, and public safety initiatives.
Therefore, while HOA fees cover shared community expenses, property taxes contribute to the overall functioning and well-being of the wider area.
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