Active adult communities often have established homeowners’ associations (HOAs) that manage operations and make their residents’ lives easier. The services HOAs provide vary from community to community. In new 55+ communities, an HOA gets created with a governing document, known as Covenants, Conditions & Restrictions (CC&R). Here, you’ll find the HOA’s board structure, rules and regulations, member elections, and other essential operational guidelines.
Who Runs the HOA?
For the most part, an HOA will be headed up by a president, vice president, secretary, and treasurer. There may also be appointed positions and committees to handle specific functions, especially in larger communities. An HOA board might be made up of community residents who volunteer their time. Other properties hire HOA property management companies that handle the work. You may see this more frequently with larger properties.
How Common Are HOAs in the U.S.?
According to the Foundation for Community Association Research, one-third (33.6%) of U.S. housing is in a community association. That’s an estimated 369,000 community associations in the U.S. with about 77 million residents. Also, according to RubyHome, more than 40% of residents in Florida, Colorado, and Nevada live in communities governed by homeowners associations, making these states the most HOA-dense in the country. California, Washington, Arizona, and Illinois also have high concentrations, each with over 30% of their populations living in community associations. On the other end of the spectrum, Arkansas has the lowest prevalence, with only about 2% of residents living in HOA-managed neighborhoods.
Why HOAs Matter for Active Adults
Active adults who live in communities with management associations can enjoy maintenance-free, lock-and-leave lifestyles—one of the key benefits of an HOA. Depending on what is offered, residents can pack their bags and leave on week-long trips without a care in the world. They don’t need to stress about mowing the lawn or shoveling their driveway if it snows. But if you’re considering a private community with an HOA, it’s important to understand how these governing bodies work and how the fees are assessed.
Why Do HOAs Exist?
The goal of an HOA is to create an environment that protects the rights of everyone in the community. Homeowners sign contracts, agreeing to live under reasonable restrictions and obligations. When everyone participates, the neighborhood benefits as a whole.
One of those obligations is paying HOA fees, which can cover a variety of services, from maintenance to amenities. All decisions, including the yearly dues, are made as a group, and homeowners can attend meetings, volunteer, vote, and participate.
Age Restriction
HOA rules and guidelines vary from community to community, but one of the most important regulations is an age restriction. Some are for 55+, 45+, 50+, or even 62+, and there are also neighborhoods without age restrictions but designed for active adult lifestyles.
Although it’s illegal to discriminate in housing based on age, 55+ communities are exempt under the Fair Housing Act. When there’s an age restriction, the HOA rules will specify that at least 80% of the homes have at least one resident who is at the noted age or older. There must also be policies and procedures showing the community’s intent to operate as an age-restricted community.
The HOA usually allows other family members living in the same unit (spouses, children) to be younger as long as the 80% remains stable.
Mediate Disputes
An HOA can step in to mediate when homeowners have disputes with neighbors. It can also be a useful resource when there are issues with a builder, a community employee, or an on-site service, such as a property shuttle. It’s always a good idea to attend the meetings, especially when you first move in. This is the best way to learn the ropes and meet your neighbors.
Association Fees
A CC&R will spell out the association fees, when they are due, and what services the HOA provides. The collected dues pay for those services and fund cash reserves when emergencies pop up. The board administers fund distributions and monitors and balances; this information is usually shared at board meetings and in reports.
You could compare an HOA to a small-town government. When a community first opens up, the builder may staff the HOA board until enough homeowners can participate or an outside party is hired. The president and other members are elected by the homeowners each year, unless otherwise specified.
How HOAs Handle Money and Legal Matters
An HOA that has a homeowner on the board with an accounting or financial management background is lucky because someone must handle the bookkeeping, complete financial reports, and advise the board on financial matters. When that kind of help isn’t readily available, an outside accounting or financial management company may be hired. These third parties can also send bills, collect funds, and issue past-due notices to homeowners who are behind on their payments. Collection agencies can also be contracted when residents don’t pay their HOA dues.
Compliant With Laws
HOAs also enter into contracts with law firms to ensure that their rules and operations comply with federal laws such as the Americans with Disabilities Act and the Fair Housing Act. There may be state and local laws that also apply, and it’s important to follow them as well.
Homeowners are expected to follow the HOA’s CC&Rs, though the level of strictness can vary from one association to another. When a homeowner, vendor, or other party violates these rules, the board should review the situation and decide how to proceed. Depending on the circumstances, the board might issue a violation notice, arrange for a vehicle to be towed, or even end a contract with an employee or vendor.
Insurance Needs
All HOAs must also manage the community’s insurance needs. This coverage might include common areas, street lights, and amenities. So if lightning strikes the clubhouse, the HOA’s insurance policy would cover the damage. An HOA also sends out RFPs (Requests for Proposals) to potential vendors and coordinates the existing ones. These hiring options are presented to the board and voted on. When homeowners have issues with these vendors, they are told to contact the HOA.
Maintains Communications
An efficient HOA maintains ongoing communications with all the residents of its 55+ community. Transparency is crucial because these associations carry significant responsibility and manage substantial funds.
The communication style will be unique to the HOA and may include emails, newsletters, phone calls, and notices. Many HOAs include other useful information in their messages, like shuttle schedules, special event announcements, local news, and homeowner birthdays.
What Do HOA Dues Cover?
Your HOA dues will typically cover maintenance and amenities, but you’ll want to read the CC&R for the details. Keep in mind that larger communities with big properties and resort-like amenities will have higher HOA fees. As the saying goes, you get what you pay for.
Exterior and Common Area Maintenance
For single-family and attached homes, covered exterior maintenance might include painting, roof repairs, and window replacements. Some communities also provide lawn care. Common area maintenance refers to landscaping around condo buildings, repairing streetlights, and raking leaves in common areas. Some HOAs refer homeowners to contractors for tasks like power washing and chimney sweeping. And if a group of homeowners needs the same service, they may be eligible for a group discount. Hiring professionals to handle this kind of work can really enhance your curb appeal.
Trash Pickup & Snow Removal
Your HOA fees might also cover trash pickup and snow removal. With these services, you won’t need to pay a separate garbage collection contractor or shovel snow. The roads will also be plowed, although you might have to wait a while until the contractor gets to your street.
Recreational Amenities
Active adult communities with clubhouses and other desirable amenities are generally associated with higher HOA dues. This makes sense because swimming pools must be cleaned, staff must be paid, and so forth. A state-of-the-art clubhouse might have a full gym, craft and activity rooms, a ballroom, and outdoor sports courts. These need to be maintained and repaired when needed, and there are also energy and insurance bills to pay.
Security
A gated 55+ community will have a guard, cameras, and a gate that needs to be maintained. Something like this is a must for many people searching for retirement communities.
Social Activities
Another important benefit of an HOA is that its members can organize social activities such as holiday parties, Zumba classes, technology discussion groups, and more. These also cost money when space must be cleaned and set up, guest lecturers engaged, and food served.
How Much Do 55+ Communities Charge for HOA Dues?
Anyone who has never paid HOA fees might balk at the need to pay quarterly, bi-monthly, and/or monthly dues. After all, it’s an added charge to the monthly mortgage payment. But since you won’t be paying separate charges for exterior home repairs and other services, you might end up paying less overall. And more importantly, you’ll have more freedom to play pickleball, spend time with your grandchildren, or go on a weekend getaway without having to worry.
When researching potential 55+ communities, you may need to be persistent to obtain HOA fee information. You can call sales centers and ask when you are touring the properties. In larger communities with homes of different sizes, HOA fees might vary by home size. And if the community has a golf course, there could be separate charges for that too.
Some CC&Rs also allow residents to do their own landscaping and offer the option to pay extra fees as part of the dues. And besides that, the dues don’t stay the same year after year. In these cases, it makes sense to learn about the fees in person when you’re visiting the neighborhood.
Working With an Experienced Real Estate Expert
Because HOA fees and rules can vary widely, it can be incredibly helpful to work with an experienced real estate expert—like the trusted agents on 55places.com. These professionals specialize in active adult communities and understand how fees, CC&Rs, amenities, and services differ from neighborhood to neighborhood. They can help you compare communities, clarify fee structures, point out any extra costs you might not have considered, and guide you toward options that fit your lifestyle and budget. With their expertise, you can move forward with confidence and avoid surprises.
Do HOA Fees Increase?
Yes, HOA fees increase to reflect inflation and higher maintenance and operations expenses. This is based on a yearly budget and determined by board members—another important reason to attend those meetings. An HOA is also obligated to maintain, operate, and repair common areas, such as entrance gates, social halls, and streets.
When unexpected large expenses come up, the reserve funds get depleted. When that happens, a special assessment may be levied to raise funds from residents to make up for the deficit. This would be in addition to any annual reserve increases due to higher service costs.
What Homeowners Can Expect From Annual Fee Increases
You can expect HOA fees to increase annually once the next year’s budget is determined. Homeowners might become frustrated when high assessments are levied, and that’s to be expected. An effective HOA will keep residents in the loop and let them know when budget meetings are scheduled and the possibility of higher fees. A brand-new clubhouse might seem very appealing, but its costs and benefits will be discussed and voted on before decisions are made.
Also, remember that community members who live in larger homes pay higher HOA fees. Fortunately, all homeowners have the right to vote and participate in their associations, and oftentimes, a brainstorming session can produce cost-effective solutions for everyone.
How Much HOA Fee is Too Much?
Location is another determining factor in HOA fees, so you can expect to pay more in highly populated and popular retirement destinations. Some of these include the New York City area (including North Jersey), the San Francisco Bay area, and the San Jose area. An HOA might sponsor events to help defray community costs, but the bulk of its income comes from the homeowners.
Home seekers who are comparing active adult neighborhoods will want to compare the different HOA fees and can ask to see the community’s fee history. This way, you can determine if one seems excessive and get a feel for how the dues might increase in the future. HOAs often work with third-party companies that project future expenses based on past and current needs. Make sure to ask about the reserve fund too.
What an HOA’s Budget Covers Each Year
In most cases, an HOA will start planning its budget towards the end of the year and will consider costs for the following:
- Insurance
- Repairs and maintenance
- Reserve fund
- Staff salaries
- Utilities
- Vendor services
After the annual budget is established, the board will calculate any miscellaneous income and review the existing reserve fund. The new dues will then be calculated based on the number of property owners in the development. An assessment might be factored into the dues or done separately. Each owner’s total will then be divided up into monthly, bi-monthly, or quarterly payments. When reserve funds cannot cover expenses, additional assessments may be levied.
Keeping Housing Costs Within Your Budget
Just like property taxes, you still must pay HOA dues after a home is paid off. HOA fees can be included as part of your housing costs (along with taxes, homeowners’ insurance, and your mortgage) and be part of a monthly budget.
As a guideline, housing costs should not exceed 30% of your monthly income. If a 55+ community’s HOA fees push you over 30%, you might want to keep shopping around. You need to have enough money left at the end of each month to pay your other bills and enjoy the standard of living that you deserve.
How to Tell If an HOA Is Overcharging
There’s no immediate way to tell if an HOA is overcharging homeowners, but staying informed and understanding that certain residents pay higher dues (larger house size, more landscaping services) can help. The budget and HOA bylaws are public information, and you can request copies of both.
What If the Community Has an HOA Management Provider?
Many active adult communities don’t have enough residents to run their HOAs, so they contract outside HOA management companies. These entities charge set fees for the services they provide, and those fees are added to yearly budgets.
An HOA manager is usually assigned and serves as the liaison between the homeowners and the management company. The manager usually assists with the board’s daily operations too.
Start-Up Fees and Ongoing Management Costs
An HOA management company may charge a start-up fee since more time will be devoted in the beginning to get things situated. The company will need to analyze the property’s current and projected operational costs and set up its management system. These initiation fees can range from several thousand dollars up to more than $30,000, as a one-time fee. Ongoing management fees are generally charged every month after they are negotiated.
The monthly fees also depend on the community’s size and location, and might be around $20 per unit per month. And if the relationship with the HOA management company ends, there will probably be an exit fee unless they do it on their own accord.
The Role of Residents in Overseeing Management Providers
Heading and participating in an HOA requires a lot of time and skills that homeowners might not have. When these companies are hired, though, it is best to have a resident oversight committee. It’s vital to have someone responsible for reviewing fees and ensuring the HOA is performing its duties in accordance with the CC&R.
An HOA Can Increase Your Property Value
The benefits of an HOA are considerable, and homeowners rely on it for essential services. It’s about more than that, though, because HOAs increase property values.
Communities without management associations lack the oversight and organization to administer maintenance and other services. Homebuyers are drawn to curb appeal and appreciate a well-cared-for lawn and home exteriors that aren’t falling apart.
In active adult neighborhoods, potential buyers will also evaluate the clubhouse and other amenities. They won’t be drawn to a facility that has seen better days or a tennis court that needs serious resurfacing.
It goes without saying that some HOAs perform better than others. Being involved can take some time away from your leisure activities, but it’s worth the effort because your voice will count. The first steps are to become familiar with the CC&R and to attend meetings. If an outside management company is used, you may still have opportunities to participate.
Start Your Homebuying Journey With 55places
A 55+ community with an HOA could be the best choice for a rewarding retirement, and 55places can help find the right community with the right HOA for you. Contact 55places to find your perfect 55+ community.
FAQ: Understanding the Benefits of an HOA
1. What are the main benefits of living in an HOA community?
Living in an HOA community provides benefits such as organized maintenance, consistent property standards, access to amenities, and a stronger sense of neighborhood cohesion.
2. How does an HOA help maintain property values?
An HOA helps preserve property values by enforcing community standards, maintaining common areas, and ensuring homes and landscaping remain attractive and well-kept.
3. What services do HOA fees typically cover?
HOA fees usually cover services such as exterior maintenance, landscaping, trash pickup, snow removal, amenity upkeep, security, and community event programming.
4. Why are HOA rules and regulations important?
HOA rules are designed to maintain consistency and fairness, protect community aesthetics, and ensure all homeowners follow policies that support the neighborhood’s overall well-being.
5. What is included in HOA maintenance services?
Maintenance services may include exterior repairs, landscaping, painting, pest control, street maintenance, and pool or clubhouse upkeep, depending on the community.
6. How do HOAs help create a low-maintenance lifestyle for retirees?
HOAs handle tasks like mowing, snow removal, and exterior home repairs, allowing retirees to enjoy a “lock-and-leave” lifestyle with fewer responsibilities.
7. Do HOA fees increase over time?
Yes, HOA fees usually increase gradually to match rising maintenance costs, inflation, and reserve fund needs for future repairs or improvements.
8. How does an HOA manage the community’s finances?
HOA boards or management companies create annual budgets, collect dues, maintain reserve funds, hire vendors, and ensure financial transparency through reports and meetings.
9. Can HOAs increase the resale value of a home?
Yes, HOAs often increase resale value because well-maintained communities with attractive amenities and consistent rules appeal to buyers.
10. How can homeowners get involved in their HOA?
Homeowners can participate by attending meetings, volunteering on committees, voting in elections, or even serving on the HOA board to help shape community decisions.
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