All You Need to Know About Homeowners Associations Fees
posted in Mortgage News
HOA fees, or Home Owners Association Fees are commonly required for properties purchased in some of Calgary’s newer communities, such as Auburn Bay, Mahogany or West Springs, in which residents are required to pay an annual fee to community associations. This typically goes towards the maintenance of amenities for the entire community to use, such as tennis courts and lakes.
Read on for more detailed guidance on HOA fees:
What do HOA fees cover?
What HOA fees cover will depend upon the specific community you’re moving to, and you can inquire with the community association as to exactly what they cover. In many cases, particularly lake communities, the fees residents are required to pay will go towards maintenance of the lake water and ensuring that the surrounding grounds are kept clean, tidy and attractive.
For communities without lakes, the fees will be used to help pay for the maintenance of parks and greenways or outdoor skating rinks, for example.
Who can tell you whether your community has HOA fees?
When the community is in its planning stages, the land developer will determine the HOA fees, and all properties subject to them, have an item registered on their land title. To find out if the community you want to move to has HOA fees, you can check their website.
It’s important to note that not all properties in the same community, will be expected to pay the same HOA fees. Do you still have to pay the fees if you don’t use the facilities?
In short, yes. HOA fees are mandatory for everyone living there, and must be paid by everyone, every year, even for those who don’t make use of the facilities.
How much are HOA fees?
With no standard for communities to follow, HOA fees vary from community to community.
How are the fees determined?
Fees are often set based upon statistical data, the costs associated with equipment and the operating of it, or on consultations from service providers who forecast the expenses for the coming years. To decide upon the final fees for residents, the communities Board of Directors may be enlisted to determine whether the fees will be enough to cover the appropriate community costs.
What do you get from paying HOA fees?
In some cases, residents of certain communities in Calgary who pay HOA fees will be able to avail discounts on classes and services being run from within the community facilities. In other instances, residents paying the fees will benefit from an attractive and well-maintained community, all year round.
What happens if you don’t pay them?
Because HOA fees are mandatory, not paying them on time and in full, may result in you being denied access to certain community facilities.
If you’re searching for a property in Calgary and would like help with the mortgage process, reach out to a local mortgage broker at the earliest. Able to give you the most up-to-date advice and with access to many lenders, they can simplify and expedite the entire mortgage process.