10 Things You Should Know about Home Owners Association (HOA) Fees

Ready to Buy? Don’t Miss These 10 Crucial HOA Fee Insights!

If you’re considering buying a home in one of Calgary’s popular new or master-planned communities like Auburn Bay, Mahogany, Belmont, Rangeview, Cranston, or Tuscany, understanding Homeowners Association (HOA) fees is crucial. These fees help maintain community amenities like lakes, spray parks, tennis courts, and outdoor skating rinks, ensuring the neighbourhood stays beautiful and functional.

HOA fees vary from community to community and can significantly affect both your monthly budget and the long-term value of your property. Being informed about what HOA fees cover and how they’re structured can help you make confident decisions and avoid costly surprises as a buyer.

This guide outlines the top 10 things you should know about HOA fees when purchasing a home in Calgary, giving you the tools to make an informed investment in your future home.

1. What Are HOA Fees?

What are Calgary hoa fees? Mahogany lake community.

Before diving into the specifics, it’s important to understand exactly what HOA fees are.

Definition:

HOA fees, or homeowner association fees, are regular payments (typically annually in Calgary, but can also be monthly, or quarterly) made by residents to their homeowners association. These fees are used to maintain and improve common areas and shared amenities, ensuring the neighbourhood remains attractive and functional.

Why It Matters:

HOA fees are part of your overall home ownership costs. In addition to your mortgage, property taxes, and insurance, you’ll need to factor this fee into your budget. However, what you get for your money can vary significantly between communities. For example, in Calgary’s lake communities, annual HOA fees go towards maintaining the quality of the lake water, employing maintenance workers, purchasing equipment, and ensuring the grounds remain beautiful.

In communities without lakes, these fees may be used for the upkeep of ponds (such as water quality and pump maintenance), parks, greenways (for tasks like lawn mowing, weeding, and tree care), and outdoor skating rinks (which require water for flooding, ice maintenance equipment, and rink boards).

Quick Tip:

Ask your Calgary REALTOR about what HOA fees cover in each neighbourhood you’re considering. Understanding these details will help you make an informed decision about whether the community and its costs fit into your financial plan.

2. What Do HOA Fees Typically Cover?

Before committing to any property, it’s important to understand exactly what your HOA fees include. Here’s a breakdown of what Calgary home buyers can expect when it comes to HOA fees:

Common Inclusions in Calgary HOA Fees:

Landscaping: HOA fees often cover routine maintenance of shared green spaces, including parks, gardens, and pathways. In Calgary, this might mean maintaining neighbourhood features like the scenic parks in Auburn Bay or the landscaped greenways in West Springs or Seton.
Snow Removal: In a city known for long winters, snow removal is crucial. Your HOA fees typically cover the clearing of streets, sidewalks, and common areas, ensuring safe and easy access during Calgary’s snowy months
Amenities: If you live in a community with recreational facilities, such as splash parks (like in Cranston), tennis courts, gyms, or community centres (like in Mahogany), your HOA fees often cover the upkeep of these amenities, giving you access to these perks year-round.

3. How Are HOA Fees Determined?

HOA fees in new Calgary community. New builds.

In brand new communities, HOA fees are typically set by the developer. These fees may sometimes be kept lower initially as a way to attract home buyers. However, once the community is fully developed and control is transferred to an HOA board, the new board will often reassess the community’s budget. This reassessment can lead to an adjustment of the HOA fees to better reflect the actual costs involved in managing and maintaining amenities like parks, lakes, and recreational facilities. As a result, homeowners may see an increase in their fees once the true operating costs of the community are factored in.

The way fees are determined can vary from one community to another, but here are some key factors involved:

Operating Costs and Forecasting:
Many communities rely on their current operating costs—such as landscaping, snow removal, and facility maintenance—and forecast future expenses with the help of service providers. This allows the HOA or the developer to estimate how much money is needed for the upcoming year. Some also use statistical data, such as the Stats Canada Consumer Price Index (CPI) for Calgary, to adjust fees according to inflation.
Consultation with Service Providers:
Experts and service providers may be consulted to project costs for maintenance, repair, or replacement of equipment over time. For example, maintaining a lake or recreational facility might require specific long-term budgeting.
Board of Directors Involvement:
In communities that are managed by an HOA board, the board of directors may play a role in determining if the collected fees will cover the necessary expenses. They review budgets and costs to ensure that fees are set appropriately.
Developers Set Initial Fees:
If the community is still under the control of the developer, the developer usually sets the HOA fees until the development is complete. After the developer transfers control to the homeowners or community association, the fees may change based on the actual costs of running and maintaining the community.
Adjustments Over Time:
Once a community is fully developed and the HOA or community association takes over, fees may be adjusted annually to reflect changes in costs, including rising inflation, increased maintenance needs, or new amenities being added.

By understanding how fees are calculated, homeowners can gain a clearer picture of what to expect and how their fees contribute to maintaining their neighbourhood's value and appeal.

4. How Much Are Calgary HOA Fees?

Calgary HOA (Homeowners Association) fees vary significantly depending on the neighbourhood, the size of the community, and the amenities or services provided by the homeowners association. There is no one-size-fits-all rate for HOA fees in Calgary, as each community has its own specific needs and management requirements.

However, here is a general breakdown of what you might expect:

Average Calgary HOA Fees:

Low-end fees: Typically range from $100 to $250 per year. These fees are often found in communities with minimal shared amenities and maintenance needs, such as parks or green spaces.
Mid-range fees: Communities with more amenities like private lakes, community centers, or recreational facilities may have fees ranging from $300 to $600 per year. This covers maintenance and repairs, community events, and sometimes additional services like snow removal.
High-end fees: Some luxury Calgary neighbourhoods or communities with extensive amenities, such as private lakes, clubhouses, or fitness centers, may have HOA fees upwards of $700 to $1,500+ per year.

Factors Affecting HOA Fees:

Amenities: Communities with lakes, pools, fitness centers, or clubhouses tend to have higher HOA fees to cover the upkeep of these amenities.
Size of the Community: Larger communities with more homes may have lower individual HOA fees since the costs are spread across more homeowners.
Reserve Funds: Some HOAs collect a portion of fees to contribute to a reserve fund for future repairs or improvements, which may increase the amount.
Services Provided: The level of service, such as landscaping, snow removal, security, or garbage collection, can affect the fee structure.

Examples of Calgary HOA Fees by Neighbourhood:

Mahogany: Fees in this lake community typically range from $350 to $1,500 per year to maintain the private lake, parks, and beaches. If you are interested in this master planned lake community check all Mahogany homes for sale.
Auburn Bay: Similar to Mahogany, Auburn Bay's HOA fees are approximately $475 to $500 per year, covering access to the lake, beaches, and community center. View all Auburn Bay homes for sale.
Arbour Lake: This northwest lake community has fees around $475 to $1,000 per year for lake access and common area maintenance. Search all the Arbour Lake homes for sale.
Lake Bonavista: One of Calgary's established lake communities in the southeast, Lake Bonavista has HOA fees around $325 to $1,900 per year, that cover the upkeep of the private lake, beaches, and parks. If you think this beautiful lake community is for you, search all Lake Bonavista homes for sale.
Tuscany: Located in northwest Calgary, Tuscany has HOA fees around $198 to $300, that maintains the extensive network of parks, pathways, and recreational areas for residents.
Elbow Valley: As a luxury community just outside Calgary, HOA fees can range from $2,100 to $3,600 per year, depending on the size of the home and services provided.
West Springs: HOA fees here generally range between $150 to $380 per year, covering basic landscaping and community events. If you are interested in this popular Calgary community search all West Springs homes for sale.
Cranston: This southeast community has fees around $150 to $600 per year, covering year round communal landscaping & maintenance, events and Century Hall. View all Cranston homes for sale.
Seton: Seton, a newer master-planned community in SE Calgary, has HOA fees around $375 to $400 per year, and offers a range of amenities like parks, recreational facilities, and green spaces. Search here for Seton homes for sale.
Legacy: In this southeast community, HOA fees are typically around $36 to $70 per year, as the focus is more on green space and park maintenance.* Ready to search all Legacy homes for sale.
Alpine Park: One of the newest communities in SW Calgary has HOA fees ranging from $250 to $330 per year.*
Glacier Ridge: One of Calgary newest NW communities has HOA fees ranging from $370 to $400 per year.*

* HOA fees in brand new communities are often set by the developer. These fees are sometimes kept artificially low to attract home buyers. Once an HOA board is established, the new HOA board may reassess the budget and adjust fees to reflect the true costs of managing and maintaining the community.

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5. How to Determine if Your Desired Calgary Community Has HOA Fees?

Here’s how you can find out if the Calgary community you're interested in has an HOA or residents/community association fee:

Check the Community Website: Many Calgary neighbourhoods, especially newer ones like Mahogany, Auburn Bay, or Cranston and the newest communites like Belmont, Alpine Park, Glacier Ridge, Seton and and have community websites where HOA or resident association fees are clearly listed. This should be your first stop to gather fee information.
Work with Your REALTOR: If you’re working with a Calgary REALTOR, they can check the land title of the property before you purchase. This will confirm if the property has an HOA fee and provide details about what's covered.
Ask Your Real Estate Agent: Your real estate agent will be well-versed in the specific communities you're considering. They can give you a breakdown of any HOA fees and help you understand how they will fit into your overall budget when buying a home.
Check the MLS Listing: Many MLS listings in Calgary include HOA fee details. Be sure to review the property information carefully to see if fees are listed.
Contact the HOA Directly: If you're seriously considering a property, you can also contact the community’s HOA directly to ask about the fees, what they cover, and any additional rules or regulations.

Understanding the HOA fees and their impact on your budget is a key part of making an informed decision as a future home buyer. Working with a knowledgeable Calgary REALTOR and using available resources will help you avoid surprises down the road.

6. Can You Negotiate or Reduce HOA Fees?

Many buyers wonder if it’s possible to negotiate or reduce HOA fees. Unfortunately, the short answer is no—HOA fees are typically non-negotiable.

HOA Myth vs. Reality:

Myth: HOA fees can be reduced if you don’t use certain amenities.
Reality: HOA fees are set based on the total budget for the community and divided equally (or based on property type). You are obligated to pay the same amount as your neighbours, regardless of your personal use of amenities. There is often a misconception that if you live in a lake community you only need to pay these fees to gain access to the lake, however this isn’t the case. HOA fees are never optional.

How to Get Value from HOA Fees:

Participate in HOA Meetings: Attending meetings gives you a say in how funds are spent, which can prevent unnecessary fee hikes.
Understand the Budget: Review the community budget each year to understand where your money is going. You may be able to propose cost-saving measure

7. What Happens If You Don’t Pay HOA Fees?

If you don’t pay your HOA fees in Calgary, there can be serious consequences, including financial and legal actions. Here's what you need to know:

Consequences of Not Paying HOA Fees:

Late Fees and Interest: Missing your HOA payment can result in late fees and interest charges, which can quickly add up.
Loss of Access to Amenities: In some Calgary communities, such as lake communities unpaid fees may lead to you being denied access to amenities like lakes, community rentals, or recreational facilities until your outstanding fees (and any accumulated interest) are fully paid.
Liens on Your Property: If the fees remain unpaid, the HOA can place a lien on your property. This lien is a legal claim that could prevent you from selling your home until the debt is cleared. The fees are a registered encumbrance on your land title, meaning they will be collected from the proceeds of the sale if not paid beforehand.

8. Are HOA Fees the Same as Condo Fees?

No, condo fees and HOA fees are not the same, although both contribute to maintaining shared spaces within a community.

Condo Fees:

Who pays? Only condominium owners pay condo fees. These monthly fees are paid to the condo management company.
What do they cover? Condo fees cover the maintenance of the building, including shared interior spaces (like lobbies, elevators) and exterior areas (such as the grounds and parking lots). They also typically cover building insurance, repairs, and sometimes utilities like water and garbage services.
How often are they paid? Condo fees are typically paid monthly.

HOA Fees:

Who pays? HOA fees are paid by all property owners in a given community, regardless of property type—whether it's a single-family home, townhouse, or condo.
What do they cover? HOA fees fund the upkeep of community amenities and common areas not covered by the city. This includes parks, lakes, green spaces, and recreational facilities. For example, in Calgary communities like Mahogany or Auburn Bay, HOA fees maintain shared lakes and other community features.
How often are they paid? HOA fees are typically paid annually.

Important Note:

If you own a condo within a Calgary community that also has HOA fees, you will be responsible for paying both. Condo fees cover building-specific costs, while HOA fees maintain the broader community’s amenities and shared spaces.

9. Pockets of Calgary Communities Without HOA Fees

In Calgary, there are several pockets within larger communities that do not pay HOA fees and, as a result, do not have access to amenities like lakes or recreation facilities. For example, Bonavista Downs in Lake Bonavista and Chaparral Valley in Lake Chaparral are sections where residents are not part of the HOA, meaning they do not contribute to the upkeep of the lake or other shared amenities and, therefore, are not granted access to them.

Similarly, in Tuscany, there are areas like Tusadora where residents do not pay the Tuscany Residents Association (TRA) fees, which means they do not have access to the Tuscany Club and its amenities, such as tennis courts, splash parks, and community programs.

In Lake McKenzie, there are certain sections where residents do not pay HOA fees, meaning they do not have access to the lake and other shared community amenities

Quick Note:

Before you buy a home in a Calgary community known to have HOA fees, check with your real estate agent to confirm if the property is subject to these fees and what they cover. While avoiding HOA fees may seem like a cost-saving benefit, potential buyers may be less interested if they can't access the same amenities that other homes in the neighbourhood offer.

10. What is the difference between an HOA and a community association?

In Calgary, we often hear the terms Homeowners Association (HOA) and Community Association, but it's important to understand the difference, especially if you're buying a home.

HOA (Homeowners Association):

Mandatory Membership: When you buy a home in an HOA-governed community, like Mahogany or Lake Chaparral, you're automatically a member. This membership isn’t optional, and you’re responsible for paying HOA fees. These fees are a crucial part of maintaining shared spaces and amenities that make the neighbourhood so desirable.
What You’re Paying For: Your HOA fees go toward maintaining the community’s amenities—think of lake upkeep, recreational facilities, and even landscaping in shared areas. It’s all about keeping the neighbourhood looking pristine and functional.
Governance & Rules: An elected board of directors, typically made up of homeowners, oversees the HOA. They ensure your community stays well-maintained and enforce guidelines for property upkeep. These rules can cover everything from lawn maintenance to exterior paint colours, all aimed at preserving the neighbourhood’s appeal.

Community Association:

Voluntary Membership: Unlike an HOA, joining a community association is optional. It’s more about getting involved in neighbourhood life and doesn’t come with mandatory fees or enforceable rules. You’ll often see these associations in areas where homeowners just want to build a sense of community without the formalities of an HOA.
Focus on Community Spirit: A community association is typically focused on events and engagement—organizing activities like neighbourhood BBQs, holiday parties, or even sports programs. It’s about creating a strong, connected neighbourhood, but there’s no obligation to join or participate.
No Legal Requirements: Since membership is voluntary, there’s no legal obligation for homeowners to pay dues or follow rules. Community associations can advocate for neighbourhood improvements but don’t have the same authority over homeowners as an HOA does.

In short, HOAs are legally required and focus on maintaining and managing your community’s infrastructure, while community associations are more voluntary and focused on enhancing social connections. Understanding this distinction will help you choose the right neighbourhood that fits your lifestyle.

Conclusion: Understanding HOA Fees When Buying a Home in Calgary

When you’re thinking about buying a Calgary home—whether it’s Mahogany, Auburn Bay, or Tuscany—understanding Homeowners Association (HOA) fees is critical. These fees aren’t just another expense; they play a vital role in maintaining the amenities that make these communities so attractive, from pristine parks and lakes to recreational facilities. HOA fees ensure your neighbourhood stays beautiful, functional, and, most importantly, desirable for years to come.

At the Marnie Campbell Real Estate Team, we know that being well-informed is key to making confident decisions. While avoiding HOA fees in pockets of communities like Bonavista Downs or Chaparral Valley might seem appealing, remember that not having access to shared amenities can impact the long-term value of your home. The appeal of neighbourhood amenities—whether it's access to lakes, parks, or community centers—can significantly influence the marketability of your home when you decide to sell.

We always recommend working with a knowledgeable Calgary REALTOR to fully understand the HOA structure, what’s included in the fees, and how they can impact your investment. By getting the full picture, you’ll be better prepared to choose the right community that aligns with your lifestyle and financial goals. We're here to guide you through these important details, helping you make a decision you’ll feel great about for years to com