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Depending on what is covered, particularly if you are buying a condo, the fee could be nearly as high as your mortgage payment.. Bilgi says potential buyers need to carefully study what the HOA fee includes and compare that to what they would pay for similar services outside of an HOA.
Every year the budget is established to cover the cost for all the items included in the HOA fee and is divided among the owners by the number of units or square feet. These dues are generally collected monthly, but some associations may stipulate quarterly or annual payments. The HOA can levy a special assessment when the association lacks sufficient reserves to pay for unexpected repairs or when it feels the reserves on hand may be too low to cover a potential major expenditure.