How to Get an HOA Statement From Your Association
Learn how to efficiently obtain your HOA statement, a vital document for managing your property's financial standing and compliance.
A Homeowners Association (HOA) statement serves as a financial snapshot of a property within an HOA-governed community. It outlines the financial obligations and standing of a property owner, providing transparency regarding what is owed and paid. This document plays a significant role in property-related transactions.
Key Information Included in an HOA Statement
An HOA statement includes a detailed breakdown of financial components related to a homeowner’s account. This starts with basic information such as the statement date, the HOA’s name and address, and the recipient’s name and property address. It also presents the current outstanding balance and the due date for payments.
Beyond regular monthly or quarterly dues, the statement itemizes other charges. These can include late fees, overdue assessments, or vendor credits. It may also reflect special assessments, which are additional fees imposed by the HOA to cover unexpected expenses like major repairs or emergencies. Statements might also include the status of the association’s reserve funds, indicating money set aside for future large-scale projects. They could also include information on any known violations or Architectural Review Board (ARB) approvals or denials related to the specific property.
Common Scenarios Requiring an HOA Statement
Several common situations necessitate obtaining an HOA statement, primarily revolving around property transactions and financial due diligence. When selling a home, the seller is required to provide disclosure documents, including the HOA statement, to prospective buyers. This ensures the buyer is aware of any outstanding liabilities, such as unpaid dues or special assessments, that could transfer with the property. Buyers use this statement as part of their due diligence to understand the financial obligations and overall health of the association they will be joining.
Another frequent scenario is when refinancing a mortgage. Lenders require an HOA statement to assess the property’s financial standing and the stability of the association. This helps them determine the borrower’s total debt-to-income ratio, as HOA fees are a recurring expense that affects affordability. Lenders also review the HOA’s financial health, including reserve funds and delinquency rates, as these factors can impact the property’s value and the security of their loan. Homeowners also request these statements for personal record-keeping, allowing them to track their payments and ensure accuracy.
Process for Requesting an HOA Statement
The process for requesting an HOA statement begins by identifying the entity to contact, typically the HOA management company or, in self-managed communities, the HOA board. Many associations utilize online portals or dedicated websites where homeowners can submit requests directly. For those without online systems, requests are made via written correspondence, which can be sent by mail, email, or in person.
When submitting a request, homeowners should include their full name, property address, and contact information. It is also helpful to specify the purpose of the request, for example, for a home sale or refinance, as this may influence the type or urgency of the statement provided. While some documents may be freely available, obtaining a comprehensive HOA statement or resale certificate incurs a fee, which can range from a nominal charge to several hundred dollars, depending on state regulations and the complexity of the information requested. Some state laws may cap these fees.
After the request is submitted and any applicable fees are paid, the HOA or management company will process it. Turnaround times can vary but range from a few business days to a couple of weeks, with some state laws mandating a response within a certain timeframe, such as 10 business days. The completed statement is delivered electronically via email or a secure online portal, though physical mail is also an option. Upon receipt, it is advisable to review the statement carefully to ensure all information is accurate and complete.