Before you buy, it’s important to understand the ongoing expenses you could have related to homeownership. That’s why we’ve started the True Costs of Homeownership series. Last month, we covered homeowners insurance changes and why it’s good to plan for increases as you are budgeting for homeownership. This month, we’re looking at homeowners association (HOA) fees.

When you buy a home that has an HOA, you are obligated to pay an HOA fee that can be due monthly, quarterly, or yearly. This fee can increase, and you may be informed around the beginning of the year about the new rate. Townhomes and condos often have higher HOA fees compared to detached homes. In addition to the HOA fee, from time to time you may also have to pay special assessments for major projects at the development that your usual HOA fees don’t cover. Most HOAs have restrictive covenants which means you may be limited in changes you can make to your property.

HOAs may provide benefits such as amenities like pools, gyms, or parks. You may also have enhanced security like a gated entrance or security patrols at your development. Another benefit of an HOA is that the HOA generally takes care of the maintenance and upkeep of the common areas of the building or development where you live.

The Colorado HOA Information and Resource Center can help you understand more about your basic rights and responsibilities around purchasing a home in an HOA.

Taking a CHFA-sponsored homebuyer education class is also a good way to get more information about HOAs. Register for a homebuyer education class today!

National Consumer Protection Week is coming up the first week in March. It’s a time to make sure you understand your rights as a consumer and how to prevent, recognize, and recover from fraud and scams. CHFA has resources that can help you learn how to protect yourself through a partnership with Zogo, a gamified financial education app.

In the Zogo app, there are bite-sized education modules about spotting fraud before it happens, protecting yourself from identity theft, recovering from identity theft, and tips to avoid predatory lending. You can earn points by answering short post-lesson quizzes and playing the in-app trivia game. When using the Zogo app, the points can be used for rewards such as gift cards to popular retailers.

Start playing today

1. Visit chfainfo.com/zogo to learn more about the partnership and download the app or visit the web-based version. Please note, rewards are only available through the Zogo app, not the web-based version.
2. Use the access code “ROADHOME” to start playing.

CHFA’s partnership with Zogo is being recognized by and incorporated into educational materials for a growing number of community partners including the Colorado Office of Financial Empowerment. Please note that Zogo does not replace CHFA’s homebuyer education requirement; it is meant to add to the financial education received.

Colorado Housing and Finance Authority

www.chfainfo.com

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