HOA.
In plain English
An HOA, or homeowners association, is the organization that governs a planned community, condo building, or townhome development. Owners pay regular dues (often monthly) that fund shared expenses like landscaping, pools, security, and building repairs. The HOA also writes and enforces rules, called covenants, conditions, and restrictions (CC&Rs), that can control things like paint colors, parking, and pets. When you buy in an HOA community, membership and the dues are not optional; they come with the property.
01Why it matters
HOA dues are a real monthly cost on top of your mortgage, and the rules can limit what you do with a home you actually own.
02The math, step by step
You buy a townhome with a $250 monthly HOA fee. That is $3,000 a year, every year, on top of your PITI, and it can rise over time. Before buying, you read the CC&Rs and the HOA's budget to see what the dues cover and whether the reserve fund is healthy.
03What this is NOT
HOA dues are not property taxes. Taxes go to your local government for public services; HOA dues go to a private association for the community's shared upkeep and amenities.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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