Understanding HOA Assessments: Regular and Special Fees Explained

If you live in a Homeowners Association (HOA) community—or are considering purchasing a home in one—you’ve likely heard the term “assessments.” Assessments are the fees homeowners pay to fund the maintenance and management of their community. But there’s more than one type, and understanding how they work can help you better plan your budget and avoid surprises.

What Are Regular Assessments?

Regular assessments, often called dues or HOA fees, are the routine payments homeowners make on a scheduled basis—monthly, quarterly, or annually. These fees cover the day-to-day expenses of the community, such as:

• Maintenance of common areas (landscaping, pools, fitness centers)

• Utilities for shared facilities

• Insurance for common property

• Management and administrative costs

• Routine repairs and upkeep

  
  

Because these assessments are budgeted annually, homeowners can expect them to be a predictable part of living in an HOA community.

What Is a Special Assessment?

Unlike regular assessments, a special assessment is an unexpected, one-time fee charged by the HOA Board to cover costs that were not anticipated in the annual budget. These expenses might include:

• Emergency repairs after a natural disaster (storm damage, flooding, etc.)

• Major capital improvements or replacements (roof repairs, repaving roads)

• Large projects that exceed the funds available in the reserve account

  
  

Special assessments are usually levied only when the HOA’s regular budget and reserve funds are insufficient to cover these significant expenses.

What Is the Reserve Fund?

HOAs maintain a reserve fund, which is a savings account built up over time from a portion of the regular assessments. This fund is meant to cover large, planned expenses and some emergencies, like repairing community amenities or infrastructure. The reserve fund helps avoid frequent special assessments but can be depleted if unexpected or costly issues arise.

Understanding Your Rights and Responsibilities

Each HOA has governing documents and state laws that govern how assessments are charged and collected. Some associations require homeowner approval before special assessments are imposed; others allow the Board to make decisions independently. It’s important to review your HOA’s rules to understand these procedures.

If you’re unable to pay an assessment, talk to your HOA Board or management company—many offer payment plans or deferments to help homeowners manage costs. Be aware that unpaid assessments can lead to late fees or even liens on your property.

Transparency Builds Trust

HOA Boards should maintain open communication with homeowners about assessments. Clear explanations of why assessments—especially special assessments—are necessary, how funds will be used, and the expected impact on the community can help foster trust and cooperation.

If you’re a homeowner or board member looking for assistance managing assessments or other HOA matters, contact Capitol Companies. We’re committed to helping your community thrive.