Homeowners Association Fee - HOA Fee

Filed Under: ,
Dictionary Says

Definition of 'Homeowners Association Fee - HOA Fee'


An amount of money that must be paid monthly by owners of certain types of residential property to an organization that assists with maintaining and improving that property and others in the same group. HOA fees are almost always levied on condominium owners, but they may also apply in some single family neighborhoods.
Investopedia Says

Investopedia explains 'Homeowners Association Fee - HOA Fee'


Condo owners almost always pay HOA fees to cover the costs of maintaining the condo building's common areas such as lobbies, patios, landscaping, swimming pools and elevators. The association may levy special assessments from time to time if the HOA's reserve funds are not sufficient to cover a major repair, such as a new elevator or new roof. HOA fees can also apply to single family houses in certain neighborhoods, particularly if there are common amenities like tennis courts, a community clubhouse or neighborhood parks to maintain.

If owners of property belonging to a homeowners' association do not pay the required monthly (sometimes annual) fees as well as any special assessments, the homeowners' association can foreclose on the delinquent homeowner. Prospective homebuyers should always inquire as to whether the property they are interested in has HOA fees before committing to buy it because these fees can affect a homeowner's ability to afford the property. HOA fees can vary widely depending on factors such as community amenities and how effectively the reserve fund is managed.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center