Homeowners’ associations (HOAs) collect fees to cover the costs of maintaining common areas within a community, such as landscaping, swimming pools, and private roads. These fees are separate and distinct from property taxes, which are levied by local governments to fund public services like schools, fire departments, and infrastructure. While both contribute to the overall cost of homeownership, they serve different purposes and are paid to different entities. For example, an HOA might use its fees to repair a community playground, while property taxes might fund the local public library.
Understanding the distinction between HOA fees and property taxes is crucial for prospective homebuyers. HOA fees can vary significantly depending on the community and its amenities, adding a considerable expense to monthly housing costs. Failing to budget for these fees can lead to financial strain. Property taxes, on the other hand, are typically based on the assessed value of the property and contribute to the overall functioning of the local government and its services. The separation of these costs allows for targeted funding of specific community versus broader public needs.
