Do HOA Fees Include Utilities? A Breakdown

Homeowners Association (HOA) fees are regular payments made by property owners in communities with shared amenities and common areas. These fees contribute to the overall maintenance and operation of the community. A frequent question among current and prospective homeowners is whether these fees include utilities, and the answer can differ significantly depending on the specific community and its structure. Understanding what is covered by HOA fees is important for accurate financial planning and budgeting.

Utilities Often Covered by HOA Fees

HOA fees frequently cover utilities associated with common areas within a community. This often includes lighting in shared spaces like hallways, clubhouses, and elevators, as well as water for landscaping irrigation. These expenses benefit the entire community.

Beyond common areas, certain utilities for individual units are sometimes included, particularly in condominium developments with shared infrastructure. Water and sewer services are often part of HOA fees, especially with a master water meter for an entire building. Trash and recycling services are nearly always included as a collective community service. Natural gas might be included for shared amenities like central hot water heaters or heating systems for common areas. Additionally, some HOAs negotiate bulk cable and internet deals, incorporating these costs into monthly fees.

Utilities Typically Paid Separately

While some utilities are covered by HOA fees, others are typically the individual homeowner’s responsibility. Electricity for individual units is almost always paid separately. This is due to varying consumption, making individual metering standard. Homeowners receive their electricity bills directly from the utility provider.

Similarly, individual internet and cable services are often paid separately if no bulk HOA agreement exists. Water and sewer services, though sometimes included, may also be paid separately if units have their own meters. These utilities are separated to reflect actual usage, allowing homeowners direct control over consumption and costs.

Finding Out What Your HOA Covers

To determine utility inclusions for an HOA, review the community’s official documents. The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and the Bylaws are primary sources, outlining the association’s responsibilities and financial obligations. These documents detail what the HOA is mandated to maintain and cover.

The annual HOA budget provides a detailed breakdown of anticipated expenses, including utilities. For prospective buyers, a resale certificate or disclosure packet offers important financial and operational details. If these documents do not provide sufficient clarity, contact the HOA management company or board directly for an itemized breakdown.