Homeowner’s Association
What are monthly assessments?
Monthly assessments can be thought of as a “bundle of services” that every homeowner, whether single family owner or condominium owner, is typically responsible for. The difference in a condominium is that you are a member of a Homeowners Association that has common expenses that you pay jointly, which creates the need for an association.
Is this the same as HOA dues?
“Monthly assessments” is the same as “HOA dues” and can be used interchangeably.
How are monthly assessments determined?
Initially the HOA dues are a best estimate that is based on similar buildings of similar size and number of homes. Most often this estimate is determined by a professional Property Management firm who has experience running HOA’s and is familiar with typical costs. Once the association is in the hands of the homeowners, each year the homeowners have a committee that puts together their annual budget and there is an HOA meeting for homeowners to vote to approve the annual budget. This total budget is divided by 12 months, and the monthly amount is multiplied by each home’s percentage of ownership. The resulting amount is the monthly assessment for each home.
What is included in this bundle of services to make up the monthly assessments?
Owning a home requires insurance, utilities, maintenance and repair. In the case of a condominium there is in addition to these items generally a professional team that dedicates their time to professionally managing these effectively for cost and performance. In many condominiums there are common area amenities, the upkeep of which are also part of the monthly assessments. Not all budgets are the same so ask your Real Estate Professional what is included in the home you are considering. In a typical condominium, the HOA bundle of services includes:
Insurance
- Property insurance for common areas
- Earthquake insurance
- Fidelity insurance for the HOA officers (optional)
- Liability insurance for common areas
Utilities
- Water and sewer
- Sewer capacity charges (per the municipality)
- Garbage (sometimes this is a separate charge)
- Natural gas (this can also be separated)
- Electricity (for the common areas)
Building Maintenance
- Common area supplies, light bulbs, etc
- Routine janitorial of common areas
- Window washing typically done quarterly
- General maintenance, supplies, and repair of common areas such as the lobby, hallways and parking garage
- Grounds maintenance including landscaping
- Life safety maintenance and monitoring
- Contract for elevator maintenance and service
- Pest control
- Carpet cleaning of common areas on a regular basis
Administration
- Office supplies and equipment
- Taxes, license fees and permits
- Property Management
Reserves
Reserves are required for all the major building components so that monthly assessments have a set aside each month for later repairs such as roof repair, painting of common areas and the exterior, flooring in common areas, etc.
Who manages the bundle of services included in the monthly assessments?
The Ruby is managed by CWD Property Management.
Who collects the HOA dues?
CWD, the professional management firm is responsible for collecting the dues and paying the bills.
When do I begin making my monthly assessments?
Following the closing of your new home, you are generally sent a coupon book for making your monthly payments or you may choose to sign up for automatic withdrawal. Assessments at the Ruby commenced on January 1st, 2010.
Do I also need to purchase homeowners insurance if I am a member of an HOA?
Yes. Condominiums have a blanket policy for building insurance in the association fee but that does not cover your personal property. You need to check with the HOA to get a copy of their policy to your insurance agent so they can be sure you are covered under your own policy for anything they do not cover as the HOA insurance policies and coverage can vary.
