With the recent defeat of a $100.00 annual, fee increaseI thought this information may be interesting with regard to current HOA fees.
HOA fees are typically calculated one of three ways: Equal share (so if there are 50 homes, the cost is divided by 50) The residents’ pro rata share of the costs based on square footage (sometimes called percentage of ownership) The residents’ pro rata share based on the property value of the home.
With approximately 14,300 HOAs in North Carolina, each resident pays between $100 and $1,000.
The average is typically between $200 and $300 per month. This will depend on the type of community, the amenities, and the services provided.
In 2023, North Carolina ranked 9th in the country for the highest percentage of homes in HOAs.In NC, the average HOA fee is $385/month, $5 less than the national average.
Over the course of the home-buying process, you will most likely run into at least one community with HOA fees.It is vital to understand the average HOA fee in your area to ensure you aren’t paying too much in fees.
The HOA has the freedom to change rules if they see fit, but all are meant to maintain and increase the value of homes in the neighborhood. The HOA will have to set rules that comply with state and federal laws
An HOA is a nonprofit, although the community pays monthly or yearly dues to pay for expenses. According to the Foundation for Community Association Research, about 2.72 million people live in HOAs, which is about 25.9%..
The highest HOA fees in the United States are in Honolulu, Hawaii. The average HOA fees in Honolulu are about $730.
Many residents decide to join an HOA to have more control and say over community rules and maintenance. The HOA will directly impact you as a homeowner, and it is important to many homeowners to have a say in what goes on in your community.
However, some HOAs in NC don’t require members to pay for everything. For example, if your neighborhood has a pool or golf course, you can opt out of paying for those. This will mean you cannot use them unless you pay a separate fee.Maintenance and repairs usually only apply to common spaces such as the sidewalks, parks, pools, and signs.
Many HOAs require members to pay dues to access certain amenities like the pool, clubhouses, fitness centers, and sports courts/ courses. Many even have restaurants that require members to spend a specific amount of money each month to stay a member.
Similar to any business, an HOA will set aside money from dues to a reserve fund. This fund is used in emergency situations or non-recurring repairs.
A voting board of the HOA usually determines the dues. This committee votes on where the money should go, how much fees should be, and when fees are due.