Homeowners Association?

Question

When you are part of a HOA (Home Owner's Association) where does you money go? Do you send it to the company that built the development? I am just curious because I know someone who lives in a big development and they have to pay around 350 a month.

Answer 1

It supposedly goes to property upkeep.

A portion goes into escrow for repairs and improvements yet to come.

Answer 2

Our HOA fee covers our club house, 4-pool complex, tennis courts, maintenance of paved hiking trails and our lake, community signs and lighting, flowers and shrubs for common areas, and twice-weekly garbage pickup.  A small slice goes to a firm that collects and manages the money. The elected HOA governing board keeps an eye on the condition of properties (like, if a house needs painting), addresses areas of common concern (like RV's or boats parked on the residential streets) and enforces community codicils and restrictions (like, if someone wants to raise goats in his yard).  They support the local elementary school, keep contact with law enforcement, and run a very active Neighborhood Watch program.  All this costs me a lot less that $350 a month.

Answer 3

The month is mailed to the company that manages the HOA.