Choosing to live in an association-governed community, whether it’s a highrise condominium or a gated community of single family homes, certainly has many perks. One major convenience is the maintenance of the property. As part of such a community, homeowners enjoy care-free living while the homeowners association or HOA is tasked with ensuring that all of the common areas of the property are well-maintained.
This includes having all the landscaping cared for on a weekly basis, keeping the pool (if there is one) cleaned and maintained, and making sure all other physical aspects of the property are in good working condition. Basically, physical assets that aren’t affiliated with the individual unit or home in which you live is the responsibility of the HOA to repair and replace in a timely manner.
That's why you pay your HOA fees on a regular basis. A portion of these financial resources are allocated to the Operating budget, which covers the routine management, upkeep and maintenance of the shared areas of the property. From the pool, to the utilities, to the yard work, your association fees are being used to make sure these parts of the community are tended to on a regular basis and everything is in good working order.
If the Board of Directors is acting responsibly, a significant portion of these fees, typically 15-40%, are allocated towards the Reserve budget. The Reserve budget covers repair and replacement costs that will come about over time. Let's say the driveway needs to be resealed or the exterior of the buildings need to be repainted, your HOA fees will be used for those things, in addition to the various routine costs of managing the property.