A homeowners association (HOA) runs a condo building or planned community. Owners must join, follow its rules and pay fees that cover shared costs. The national median fee was $135 a month in 2024, and condos often run $300 to $700 or more. Before buying, read the budget, the reserve study and the meeting minutes, because an underfunded HOA passes its bills to owners as special assessments.
What an HOA does
It maintains what owners share: roofs, hallways and elevators in a condo; roads, entrances, pools and landscaping in a community. It also enforces the rules written in the community’s governing documents, often called CC&Rs. Membership comes with the property. You can’t opt out.
What the fee covers
- Often included: exterior and common-area maintenance, landscaping, snow removal, trash, the building’s master insurance policy, amenities and management.
- Sometimes included: water, sewer, heat, cable or internet.
- Reserves: money set aside for future big repairs such as roofs, paving and elevators.
About one in four U.S. homeowners pays a fee. Compare homes on total monthly cost, because a fee often replaces things you’d otherwise pay for yourself.
Try it: HOA fee calculatorSee how much buying power a monthly fee uses and what it adds up to over the years you’ll stay.Special assessments
When a large cost comes up and reserves are short, the HOA bills owners directly. Assessments can be a few hundred dollars or tens of thousands for a major building repair. Ask whether one is planned, and ask who pays an assessment approved before your closing. Your contract can require the seller to pay it.
What to read before you buy
- The budget and financial statements: is the HOA spending more than it collects?
- The reserve study: how much should be saved for future repairs, and how much actually is.
- Meeting minutes for the past year: disputes, planned projects and talk of assessments show up here first.
- The rules: rentals, pets, parking, exterior changes, short-term rentals.
- Insurance: what the master policy covers and its deductible.
- Delinquencies and lawsuits: many owners behind on dues, or pending litigation, can block financing.
Many states give buyers a set number of days to review these documents and cancel. Use them.
HOAs and your mortgage
Lenders add the dues to your housing payment when they calculate your debt-to-income ratio. For condos, the lender also reviews the building itself; see condo mortgages, explained.
If you don’t pay
An HOA can charge late fees and fines, place a lien on your home and, in many states, foreclose. Treat dues like a mortgage payment.
Deciding between home types? See condo, townhouse or single-family home?
Common questions
What is an HOA?
A homeowners association is an organization that manages a condo building or planned community, sets rules and collects fees from owners to maintain shared property.
How much are HOA fees?
The national median was $135 a month in 2024. Condos commonly run $300 to $700 or more because the fee covers the building.
What is a special assessment?
A one-time charge to owners for a cost the HOA’s budget and reserves can’t cover, such as a new roof. It can run to thousands of dollars.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.