Definition
HOA dues are regular mandatory payments required of all property owners in homeowners association communities to fund common operations and maintenance. Dues are enforced through liens and failure to pay can lead to foreclosure.
Where you’ll meet it
What should I check in the unit that a house buyer wouldn't?
See it in Buying a condo or townhome · Step 3About this term
HOA dues typically cover common area maintenance, management expenses, insurance, and reserve funds. Dues are a fixed monthly or annual amount established in the HOA budget and assessed to all owners. These dues are mandatory—failure to pay results in liens and potential foreclosure. Buyers should factor ongoing HOA dues into their affordability calculations and understand what services the dues fund.
Pro Tip
Include HOA dues in your monthly housing expense calculation when determining affordability.
Example
A community requires monthly HOA dues of $300 per property to maintain the common areas, clubhouse, and reserves.