HOA Dues

[marty mcfly_IHB]

<p>Can anyone here tell me how HOA dues are set at build-out of a new housing development? I know the fees are supposed to go to common area maintenance and other community amenities, like a community pool, landscaping, guard gate, etc. But I've always been suspicious that the fees somehow include a kickback paid to the builder(s) or developer, perhaps as compensation for building the roads and infrastructure, or perhaps just so the builders can lower the home prices and collect some of the difference in the form of higher HOA fees.</p>

<p>Maybe I'm crazy, but I visited a new development down in South OC over the weekend and the HOA fees are expected to be $469 at buildout. There will be over 400 homes in the development, and aside from community-wide internet access, a gate and landscaping (only for a few common slope areas, not for individual homes), the only amenity will be a community pool. It doesn't take a genius to figure out that these amenities would not cost a collective $200,000 per month to maintain. At the development where I currently live, HOA dues are $250 and that includes a community pool, a gate and community landscaping. And every once in a while the HOA even re-slurries the asphalt in the community. Granted, we don't have internet access paid for by the HOA, but there are only 180 homes in the HOA were I currently reside and so the HOA is obviously doing more with less HOA revenue.</p>

<p>Anyone care to enlighten me?</p>

 

[mino2126_IHB]

From what I have learned HOAs are only their to take care of the community in regards to maintenance and not infrastructure. Typically infrastructure is paid through Mello-Roos which is in place so that you don't get dinged on your property taxes....pretty ridiculous in my book. IMO I sometimes think communities setup high HOAs b/c it will be a deterant possibly to less affluent buyers who don't really understand HOAs. However, $469 @ build out is sky high. That only is almost a quarter of rent for certain 2 bedroom apartments.

 

[momopi_IHB]

Marty mcfly:





I've never head of an Irvine HOA that paid kickbacks to the builder/developer. Usually HOA board of directors is made up of residents and they can change the management company if they're not happy with them. If you have any questions about the high HOA fees, you can always contact the association to get an annual budget/expense report and see exactly where the $$ is going.





New construction tend to have higher HOA fees, because it's easier to set a higher HOA fee from start than to raise it later. If you're buying a new home and the HOA is $300, you just live with it. But if you bought the home 15 years ago and the HOA was $100, then the association wants to raise it to $300 for periodic termite treatment, everyone will scream bloody murder even if the termites are eating through their walls.