When you are looking at purchasing a townhouse or a condominium, you'll oftentimes hear the term "association",  "homeowners association", or HOA for short.

Many people consider a condominium or a townhouse as an entrance into home ownership. They may not want the responsibility of owning a home, but still feel accomplished as a home owner. Whatever the reason, there are several benefits to owning an Association Maintained property.

Before you buy a condo or townhouse, you should know what a HOA is, what they are responsible for, and how they will affect your unit.

The Homeowners Association (HOA) is an entity that consists of the owner members that elect a Board of Directors (BOD) to run the Association. The HOA upholds the Rules And Regulations that were passed by the BOD. They exist to ensure the smooth continuation of the Association, and the betterment of the owner-members.

Besides upholding the Rules and Regulations, the HOA also maintains the property and amenities. There is a slight difference between Condos and Townhouses in the fact that with Condos you usually have common spaces and other amenities. That's not to say that you can't have those things with Townhouses, but it is less likely.

The HOA also maintains, repairs, and replaces aging infrastructure. This is usually done through a reserve fund and/or special assessments. Items of this nature include: roof replacement, heating plant replacement, driveway / concrete upkeep or replacement, siding, decks, swimming pools, tennis courts, common space carpeting and painting, etc. All of this is controlled and maintained by the HOA.

Part of the HOA is regulating how your unit looks and how you can function in it. For the inside, the HOA usually regulates making changes to your unit that involve changing any of the walls or plumbing. They also may have rules that spell out pet and rental policies. The exterior appearance is also regulated by the HOA, including paint color, finishes, door and window styles.

Association Dues

Association dues are a normal part of Association Living. The association collects dues to manage the property, take care of maintenance, and other various things. The list below is not all inclusive, some associations don't charge for some of these items, and some may charge for items not on this list, but these are the most common items that the association covers.

Professional Management

Heating (usually condos but not townhouses)

Air Conditioning (some condos but not townhouses)

Sanitation

Snow / Lawn Care

Outside Maintenance

Hazard Insurance

Cable TV / internet (only some cover this)

Water / Sewer

Building Exterior (decks, siding, exterior painting)

Security Staff (condos)

Shared Amenities (workout rooms, pools, party room, etc)

Why do association fees vary?

There are numerous reasons why association dues vary so much, but the most significant ones are as follows: reserves totals, older building upkeep, different amenities offered, and some dues include heating.