Owning a home brings many privileges and responsibilities. When you purchase a condominium, you are accountable to the condo association (COA). When you purchase a house, you may be subject to the rules and fees of a homeowners association (HOA). In both cases, there are fees involved.
What Is the Difference Between a COA and an HOA?
The basic concept is the same. You pay a fee to the association and agree to follow its rules in exchange for certain services and amenities. However, there are differences in what is covered by a condo fee vs HOA fees.
Condominium Association Fees
COA fees cover maintenance of common areas. This generally includes shared parts of the building, such as the lobby, hallways and roof, as well as outdoor structures, such as lawns and pools. A benefit of condo ownership is that costly repairs are covered by COA fees. If your building needs a new roof, the COA pays for it.
Homeowners Association Fees
Like COA fees, HOA fees cover maintenance of common areas. However, HOAs typically consist of single-family homes within a neighborhood, so common areas include playgrounds, neighborhood pools and sidewalks. Homeowners must maintain their own property. HOA fees tend to be lower than COA fees; however, if your home requires expensive repairs, you foot the bill.
Home ownership has many costs to consider. Understanding the difference between condo association fees and homeowners association fees can help you make an informed decision.