HOA Fees and Rules: CC&Rs, Reserves, Disputes

What HOA fees pay for

A homeowners association manages the common areas of a subdivision or a condominium. Cornell’s Legal Information Institute lists typical tasks: garden, pool and fence maintenance, noise abatement, snow removal, parking areas and repairs.

The Census Bureau draws a line between the two main types. HOAs “collect fees to manage common areas and amenities.” Condo fees “cover more shared services and structural features like roofs and hallways.” HOAs are more common than condos and their fees are typically lower.

The CFPB notes that dues “can range from a few hundred dollars a month to more than one thousand dollars a month.” They are usually paid directly to the association, not through the mortgage payment.

What the Census data show (2024)

The American Community Survey (ACS) has long asked about condo fees; its 2024 estimates include HOA fees too.

About half of homeowners in the District of Columbia and Hawaii also reported paying more than $500. Arizona, Florida and Nevada had higher shares of homeowners paying condo or HOA fees.

CC&Rs: the rules that run with the land

Covenants, conditions and restrictions (CC&Rs) are “a set of rules governing the use of a certain piece of real estate in a given community.” Cornell gives examples: fences, the type of garbage cans allowed, and whether owners can open businesses in the community.

Three points matter for owners:

• Many CC&Rs require owners to pay upkeep fees as monthly dues.
• CC&Rs are usually recorded with the county and “run with the land,” so they bind each new owner.
• Cornell notes that failing to record CC&Rs can, in many cases, make them unenforceable.

The association enforces the CC&Rs and can impose penalties. Read them before buying, along with the bylaws and rules (see home buying steps).

Reserves and special assessments

Reserves are savings for large repairs. There is no single national reserve rule, but two official benchmarks help:

• FHA (condos): under HUD’s Handbook 4000.1 (condominium section effective November 10, 2026), a project must fund reserves with at least 10 percent of 12 months of unit assessments, unless a reserve study supports less, and no more than 15 percent of units may be more than 60 Days past due.
• Florida (condos): budgets must include reserves for roof replacement, building painting and pavement resurfacing, plus any item whose deferred maintenance or replacement cost exceeds $25,000 or the inflation-adjusted amount set by the state, whichever is greater.

When reserves fall short, associations may levy a special assessment. Florida defines it as “any assessment levied against a unit owner other than the assessment required by a budget adopted annually.” Other states use their own definitions.

HOA disputes: where to go

Disputes are governed by the CC&Rs, the bylaws and state law. Some states have an office for owners, with limited powers.

• Virginia: the Office of the Common Interest Community Ombudsman receives “notices of final adverse decisions.” The notice must be filed within 30 days of the association’s final decision, with a $25 filing fee. Its determinations are legally non-binding.
• Colorado: the HOA Information and Resource Center records complaints but has no “investigative or enforcement capabilities.” It does not mediate or arbitrate.

In Virginia, the complaint generally goes through the association’s own procedure first. Other states may route disputes to courts, mediation or a state agency, so check your state’s rules and your governing documents.