Blog

What are HOA?

When developers build a community, some will include amenities. These amenities are for the community and are paid for by the community. In addition, some HOAs add rules to protect the community's property value.

These fees may include

• Maintaining the community's aesthetic.
• Maintaining amenities such as community pools, halls, skating rinks, etc.
• Snow clearance during winter.
• Garbage collection.
• Stormwater runoff.
• Pathways and roads.
• Maintenance of entrance features.
• Repair and maintenance of landscaping.

These responsibilities vary from community to community. Typically, the more the amenities, the higher the fees.

HOA Fees in Edmonton

Over recent years, the city of Edmonton has seen the rise in new developments in the southern and northern portions of the city, most of which are set up with HOAs.

Note: In most cases, HOAs do not cover the entirety of a neighbourhood. It could be several homes within a certain area or homes inside a gated community in a neighbourhood.

In terms of HOA fees, in places like the Summerside, the HOA charges anywhere from $443 to $1065. In addition, these rates can be adjusted for inflation and GST (Goods and Services Tax).

These rates are among the highest in Edmonton mainly because the Summerside Community is a lake community that maintains lots of amenities including a 32-acre lake, a 10-acre park, tennis court, basketball court, tents, mini-golf, playground, pleasure skating, hockey rinks, boat docks, beach, and much more.

The Summerside HOA’s website lists the fees in the following categories:

• Lake Front   -    $1,064.86
• Lake Access  -  $621.21
• Standard     -     $443.71

In communities like Summerside, different fees for different homes are quite common. This is because some homeowners may have exclusive access to certain amenities, therefore they have to pay more to cover the maintenance.

So, in the example of Summerside, homes with lakefront access pay more as they have exclusive access to piers and boat docks.

Can HOA fees go up?

HOA fees can increase depending on the HOA’s plans. In instances where HOA members vote to build new amenities, let's say a community pool, the fees may be increased to cover such an expense.

So it's best to check an HOA's plans before buying into a community as you'll be forced to contribute to such plans.

In addition, some HOAs adjust the fees for inflation.

Can You Negotiate HOA Fees?

HOA fees are set by the board. However, HOA members can rally up support and pass amendments to reduce or increase membership fees. This may require a meeting to decide on the appropriate fees and then a vote to make a final decision.

Can HOAs Evict You Due to Non-Payment of Fees?

HOAs do not act as a landlord or owner of your property therefore, they cannot file an eviction claim. However, in certain cases, HOAs can restrict access to community amenities such as parks, sports fields and much more if HOA fees are not paid.

In addition, HOAs usually charge interest on outstanding accounts. This means such fees can balloon to astronomical amounts if left to accrue.

When you sell your home, any HOA fees and interest accrued will be deducted from the proceeds of the sale since the HOA has a registered encumbrance on the property title.

Some HOAs charge additional costs such as collection costs, late payment charges and legal fees.

Can HOAs restrict rentals?

When you join an HOA, you have to sign an agreement meaning you have to abide by the HOAs by-laws.

Some HOAs ban renting altogether, while others place restrictions on the number of homes that can be rented at a given time.

Others like the Summerside HOA in Edmonton, allow renting, however, homeowners would have to sign a Tenant Transfer Form.

The transfer means the tenants take over the landlord's HOA membership, but the catch is the landlord would take liability for the tenant's actions while on HOA amenities.

Can You Be Forced to Join an HOA?

In Canada, most HOAs are formed by developers who want to include homes in their development under an HOA. So, buying such a property would mean mandatory HOA membership.

It’s best to consult with your realtor or lawyer to check whether a house is under an HOA before making a purchase. As of now, there is no database listing all the HOAs in Edmonton.

However, information can be found by looking at a property's land title.

In other situations, your neighbours may come together to form an HOA. In such an instance, they cannot force you to join their HOA as you are not a party to their agreement.

In conclusion, work with an experienced Realtor. We know how HOA’s work, can explain everything to you in layman’s terms and you’ll know exactly what to expect when you join an HOA. Let’s talk.

Need advice on what your home needs to sell fast and for top dollar? Call today!

☎️ 780-951-2378