Mark Burns is Associate Professor in the Department of Political Science and former Director of the Health Administration Program at Auburn University.
HOA fees are based on a variety of things. The management association bidding to run an HOA determines the hard costs of things like utilities, landscaping, pool maintenance, administrative costs like attorney fees, billing and postage plus any other required overhead.They then add on their profit margin for servicing the account.he management association bidding to run an HOA determines the hard costs of things like utilities, landscaping, pool maintenance, administrative costs like attorney fees, billing and postage plus any other required overhead. They then add on their profit margin for servicing the account.
If you live in a planned community, such as a condo or townhome, you may have to pay special HOA assessments in addition to monthly HOA fees. Understanding How HOAs Work. An HOA has a board of directors. Each year, the board will come up with a budget for the community that includes how much each unit or household will be charged as a monthly HOA fee during the year.