Santa Clarita Property Management: How HOA Dues are Determined

If you have recently moved to an area that requires you to pay dues into a homeowner’s association, you may wonder how this amount is calculated and what it covers. Put simply, you are probably wondering what it is exactly that you are paying for. This is a good question, especially in a time when it is crucial to make every dollar count. Luckily, the HOA dues are based on laws and regulations in the state, rather than being an arbitrary number that the members of the board have come up with. Here at National Property Management Groupa property management group serving Santa Clarita, we have some information about HOA dues, how the HOA dues are determined, and what the HOA dues cover.newgrass

In the state of California, the DRE (Department of Real Estate) requires that a budget is developed from the developer for the development that has been proposed. This budget has to be submitted for approval to the DRE prior to any actual sales taking place. The DRE has guidelines for the budget for all areas that are owned in common areas, and the DRE determines which areas are the Association’s responsibility in terms of maintenance and replacement when  necessary.

There are two basic areas of the budget:

  • Operating Accounts

The Operating Accounts include things such as the landscaping, utilities, etc.

  • Reserve Accounts

Reserve Accounts are for long-term replacements, such as the replacement of storage tanks or water boilers, repaving, re-roofing, exterior painting, and more.

The individual assessment is then determined by dividing the approved annual budget by the total number of units in the Association’s jurisdiction. Once the DRE has approved the first budget, the total assessment for each month is passed on to the homeowners. Afterwards, the Association’s Board of Directors and property manager determine the ongoing needs of the property and adjust the dues accordingly.

A portion of the monthly dues that you pay will cover the repairs, maintenance, and operation for which the association is obligated to with the Covenants, Conditions, and Restrictions. These items include janitorial, security services, pest control, landscaping, refuse collection, electricity, water and taxes. A portion of the assessment that you pay each month will also go toward the reserve account.

If you have additional questions about HOA dues, contact National Property Management Group today for information. At NPMG, we understand the inner workings of HOAs and can help you to understand the HOA dues for your Santa Clarita home.

National Property Management Group
28009 Smyth Drive
Valencia, CA 91355
661-295-5966

Santa Clarita Property Management: What Happens to Your Santa Clarita HOA Dues?

If you live in a home governed by an HOA in Santa Clarita, you will have a board that oversees your community or subdivision. Each HOA is responsible for collecting dues from all homeowners to provide financing for group activities, which can include the maintenance and repair of any shared space, management services, insurance, meetings HOA Swimming Pool in Santa Claritaand other types of events.

 In most cases, the primary role of the Santa Clarita HOA is collecting dues that are used to ensure maintenance and repair of any common areas within the community. Some of the common areas that these funds may be used for includes swimming pools, playgrounds, tennis courts, or any other area that is able to be accessed by all community members. Additionally, any type of townhouse community that has shared roofs, yard space, laundry areas and plumbing will also benefit from the HOA dues collected. These funds will be used for the repair and maintenance of these shared items.

It is the responsibility of each community member to pay their HOA dues in Santa Clarita. The collected dues are either put in use right away, or set back into a type of reserve fund that will cover the recurring costs or to help create a source of money for any capital or unforeseen projects that may happen in the future that will require maintenance. This reserve can be used for damage caused by a natural disaster such as a flood or storm, or for other issues including fires or regular wear and tear.

The most common way that Santa Clarita HOA’s utilize dues are to enhance any area that is used by all members of the community, which is why it is required that each member pay these on a regular basis. The HOA may also place fines or fees for any rules that are broken by a member or if the fees are not paid in a timely manner. Any fees that are collected will go into a reserve account in order to maintain the common areas or the other expenses that the HOA organization will incur.

National Property Management Group offers services for any community managed by an HOA, helping both board members and tenants understanding their duties and responsibilities.

National Property Management Group
28009 Smyth Drive
Valencia, CA 91355
661-295-5966