You’ve settled into your new home, unpacked your boxes, and admired the community pool. Life seems pretty great—until an envelope lands in your mailbox: your Homeowners Association (HOA) fee statement. If you've ever wondered whether there's a way to get out of paying those HOA fees, you're not alone. Before you start packing up and planning your next move, let's explore what HOA fees are, and go over what options you might have.
Understanding HOA Fees
Although it might feel like it at times, HOA fees aren't just arbitrary charges designed to drain your bank account. They serve specific purposes that benefit the entire community. Everyone chips in so that common areas stay neat and functional.
HOA communities are also very common. In 2024, roughly 46.6 million Americans lived in neighborhoods governed by more than 220,000 HOAs, according to the Foundation for Community Association Research. These numbers exclude condo communities and apartment co-ops.
What Do HOA Fees Cover?
Maintenance of Common Areas: The HOA handles the landscaping, snow removal, and upkeep of shared spaces like parks and playgrounds.
Amenities: Remember the heated pool and the gym you bragged about when you moved in? The HOA funds keep them running.
Security Services: Gated entrances, security patrols, and surveillance systems are often paid for by HOA fees.
Insurance: The HOA carries insurance for common areas and shared structures.
Administrative Costs: This covers management fees, legal services, and reserve funds for future repairs.
Understanding where your money goes can make paying those fees a bit easier to swallow. They might seem well worth it when you're using the community pool on a hot day, or watching the snow get cleared after a big snowfall.
Can You Get Out of Paying HOA Fees?
Short answer: Unfortunately, no. HOA fees are typically mandatory for all homeowners within the association. When you purchased your property, you agreed to the HOA's covenants, conditions, and restrictions (CC&Rs), which include the obligation to pay fees.
What Happens If I Skip Paying HOA Fees?
Legal Consequences: Failing to pay can result in fines, liens on your property, or even foreclosure in extreme cases.
Community Impact: Non-payment can affect the entire community by reducing the funds available for maintenance and amenities.
Credit Score Damage: Delinquent payments can be reported to credit bureaus, impacting your credit score.
Unfortunately, trying to dodge HOA fees is like skipping leg day at the gym—tempting, but ultimately not in your best interest.
HOA Fees on the Rise
Don't get too used to your monthly budget, because HOA fees keep climbing.
The U.S. Census Bureau’s every-other-year American Housing Survey shows the average HOA fee climbed to $243 in 2023 from $191 in 2021 and $170 in 2019. That works out to a 43% fee hike from 2019 to 2023.
According to the Foundation for Community Association Research, 9% of homeowners reported paying more than $500 for monthly community association fees in 2024 — up from 6% in 2020 — while the majority of homeowners paid between $101 and $300 per month.
Thomas Skiba, CEO of the Community Associations Institute, explained that HOA fees are rising because the costs of managing communities are rising. Among them are:
Significant increases in property insurance premiums, particularly in states prone to natural disasters.
Higher wages for maintenance workers and other staff.
Climbing costs for goods and services.
Upward adjustments of reserve funding to cover big projects and emergencies.
“Like individual households, community associations face the same economic pressures of everyday life — there’s no exemption from rising costs,” Skiba said.
Exploring Ways to Reduce Your HOA Fees
While you can't outright avoid paying HOA fees, there are some strategies to potentially reduce them.
1. Review the HOA Budget and Financials
HOAs are required to provide financial statements to homeowners. Reviewing these documents can give you insight into where the money is going and can potentially reveal where some costs can be saved.
Ask Questions: If you notice excessive spending or expenses that are unclear, bring it up at the next meeting.
Propose Cost-Cutting Measures: Research and suggest ways the HOA could save money, which might lead to lower fees.
2. Get Involved in the HOA
Participating in the HOA can give you a voice in financial decisions.
Run for a Board Position: Influence decisions about budgets and expenditures.
Join Committees: Help manage projects more efficiently, potentially reducing costs.
3. Advocate for a Reserve Study
A reserve study assesses the HOA's long-term capital improvement needs.
Why It Helps: A reserve study ensures the HOA is saving for future expenses. This reduces the likelihood of sudden fee increases or special assessments.
Action Steps: Propose that the HOA conducts or updates a reserve study.
4. Challenge Unreasonable Fee Increases
HOAs must follow their own rules when increasing fees.
Review CC&Rs: Check if the increase is in line with the association's governing documents.
Seek Legal Counsel: If you believe the increase is unjustified, you can consult a lawyer familiar with HOA laws.
Considering the Nuclear Option: Selling Your Home
If HOA fees make you want to pack-up and move, you're not alone.
Of the one-third of homeowners surveyed last year by home repair app Frontdoor who reported having a bad HOA experience that caused them to ponder a move, nearly two-thirds (63%) cited “excessive or unreasonable” HOA fees as their biggest gripe. And more than half (51%) of homeowners indicated their HOA fees had gone up. HOAs have left such a bad impression on homeowners that 70% said they’d prefer living somewhere without an HOA if they bought another home.
Pros:
No Monthly Fees: Say goodbye to that extra expense.
More Freedom: Fewer restrictions on how you modify your property and how you use it.
Cons:
Less Community Maintenance: You might miss out on well-kept common areas and amenities.
Property Values: Homes in HOAs can have higher property values due to their maintained standards.
Before putting up the "For Sale" sign, weigh the benefits you're receiving against the costs.
Understanding Exemptions and Hardship Cases
Some HOAs offer temporary relief in specific situations.
Financial Hardship Provisions
If you are going through a hard time financially, some HOAs have policies to assist homeowners facing financial difficulties. Every HOA is different, but it's worth exploring these options if you are in a difficult financial situation.
How to Access Them: Contact your HOA board to discuss your situation openly. They may offer some solutions such as a payment plan, temporary fee reduction, or deferred payments.
Discounts
In rare cases, HOAs may offer discounts to senior citizens, first-time homebuyers, and military service members.
Check Your Bylaws: Review the governing documents or ask the HOA board if such provisions exist.
Legal Avenues: Proceed with Caution
If you believe your HOA is mismanaging funds or not upholding its responsibilities, legal action is a last-resort option, and even then it might not be worth the costs.
Consult an Attorney
Expert Advice: Lawyers specializing in HOA laws can provide guidance.
Possible Actions: Mediation with the HOA, or filing a lawsuit for breach of fiduciary duty
Keep in mind that legal battles can be costly and time-consuming. Weigh the potential benefits against the drawbacks.
Alternatives to High HOA Fees
If you're still in the home-buying phase, consider options that might offer the community feel without the hefty fees.
Non-HOA Communities
Pros: No mandatory fees, fewer restrictions.
Cons: Less community maintenance and fewer amenities.
Co-ops or Condos with Lower Fees
Smaller Associations: Sometimes have lower fees due to fewer amenities.
Due Diligence: Review their financial health to avoid future surprises.
Addressing Concerns over High Fees
Unfortunately, there is no way to get out of those HOA fees. They are a binding part of your agreement with the homeowners association. However, there are ways you can address concerns about high fees. Skiba offers these tips:
Attend HOA meetings to stay informed about financial decisions.
Ask HOA board members about strategic planning, budgeting and reserve funding.
Encourage regular, thorough studies of reserve funding to perhaps decrease the need for costly special assessments.
Work with the board to explore cost-saving measures such as energy-efficient upgrades or competitive bidding for services.
Despite financial pressures, Skiba said HOAs and other community associations “continue to offer strong value by maintaining shared spaces, preserving property values and providing services that would be more expensive if handled individually. With active homeowner involvement and forward-thinking financial planning, communities are well-positioned to manage future needs and remain vibrant, desirable places to live.”
Making Peace with Your HOA Fees
At the end of the day, HOA fees fund services and amenities that contribute to your quality of life and property value. While it's natural to not want to take on additional expenses, consider the benefits that an HOA provides:
Convenience: Less personal responsibility for maintenance and repairs.
Community Standards: A well-maintained neighborhood can make your day-to-day living a lot more enjoyable.
Amenities Access: Enjoy facilities like pools and parks without all of the work and costs.
Looking for a Home That Fits Your Lifestyle?
At NewHomeSource, we're here to help you find a home and community that align with your preferences—HOA fees and all. Whether you're looking for a bustling neighborhood with lots of amenities or a quiet street with minimal obligations, we've got the resources to guide you every step of the way.
Additional reporting by John Egan
Michael Letendre
Michael Letendre is a writer for NewHomeSource and Builder Magazine.