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Rise of HOA Fees in Ohio: What Homebuyers Need to Know

In recent years, homeowners association (HOA) fees in Ohio have been on the rise, adding yet another challenge for homebuyers in the state. According to the latest report from Realtor.com’s economic research team, 36% of homes listed for sale in Ohio in 2024 had HOA fees, up from 34% in 2023. The median HOA fee also increased by 13%, reaching $115 per month, compared to $102 the previous year.

These rising costs come on top of persistently high mortgage rates, as well as increasing property taxes and insurance costs, making the financial burden of homeownership more challenging.

Danielle Hale, Chief Economist at Realtor.com, emphasizes, “Purchasing a home is already a financially daunting task, with upfront costs like a down payment and closing costs, and ongoing monthly expenses for principal, interest, taxes, and insurance. When adding the rising cost of HOA dues, it becomes essential for buyers to understand what benefits an HOA provides and how these fees fit into their overall budget.”

Certain HOAs offer clear benefits that can increase property values, such as pools, tennis courts, or community clubhouses. Additionally, HOA fees may cover maintenance or utilities, lowering monthly out-of-pocket costs for homeowners. However, in some neighborhoods, especially where the HOA is managed by the original developer instead of residents, the purpose of these fees can be unclear, and governance may be opaque.

“Buyers should closely examine what benefits the HOA provides, like maintenance, security, or communal amenities, and decide if those are worth the fees,” the report notes. “If not, it might be wiser to look for homes without HOA obligations, most likely older single-family homes in less flashy neighborhoods.”

HOA Fees by Region in Ohio

The report highlights that HOA fees are higher in upscale neighborhoods around major cities like Columbus and Cincinnati, with some communities charging over $400 per month, especially in areas with extensive amenities and maintenance services. Conversely, rural and less populated regions in Ohio tend to have lower HOA fees, often under $100 per month.

Stringent Regulations and High Complaints

Certain Ohio regions, particularly affluent suburbs around Cleveland and Dayton, have stringent HOA regulations leading to higher homeowner complaints. These areas often enforce detailed rules on property appearance, noise levels, and community engagement. The Ohio Planned Community Law and local regulations guide these HOAs, but enforcement and homeowner satisfaction levels can vary.

Noteworthy HOA Lawsuits in Ohio

Several notable lawsuits have been filed against HOAs in Ohio, reflecting ongoing disputes between homeowners and associations. For instance, in one case, an HOA in Columbus faced a lawsuit for allegedly misusing funds, with homeowners accusing board members of using association money for personal expenses.

Another lawsuit in Cleveland involved architectural request denials, where a homeowner sued the HOA for unlawfully denying their request to make architectural changes to their property. The lawsuit claimed that the denial was arbitrary and did not align with the HOA’s regulations.

Additionally, there have been instances of discrimination lawsuits against HOAs in Ohio, where homeowners have alleged violations of the Fair Housing Act. These cases often involve claims of discriminatory practices against disabled homeowners.

HOA Fees More Common in New Construction

The report found that newly built homes in Ohio are significantly more likely to carry HOA dues, with 66% of new builds having association fees compared to 35% of existing homes listed last year. However, previously owned homes typically have higher monthly fees than new builds.

In 2024, the median monthly HOA fee for existing homes in Ohio was $143, up 14% from the previous year. For new homes, it was $68, up just 5%.

This disparity is due to new homes often being smaller and more affordable, while older HOAs might offer more amenities, leading to higher upkeep costs and dues. As more recently built homes enter the resale market, the share of previously owned homes with HOA fees is likely to rise.

Higher HOA Fees for Condos

Attached dwellings like condos, row homes, and townhomes in Ohio are more likely to have HOA fees, with 82% of such listings including a fee, compared to just 32% of single-family homes.

“Homes like condos, townhouses, and new-construction single-family homes in neighborhoods with ample amenities are more likely to have an HOA fee,” says Hale.

These fees are also significantly higher for condos, with the median monthly HOA fee for condos in Ohio at $368 last year, compared to just $54 for single-family homes. Both types of properties have seen rapid increases in HOA fees, with an 8% rise for condos and a 6% rise for single-family homes last year.

HOA Special Assessments

In addition to monthly HOA fees, homeowners may also encounter special assessments. These are one-time fees imposed by the HOA to cover unexpected expenses or major projects, such as roof replacements, road repairs, or significant community enhancements. Unlike regular monthly fees, which are predictable and recurring, special assessments can be unexpected and vary in amount.

Special assessments are usually decided by the HOA board and may require a vote from the homeowners. These assessments can place a substantial financial burden on homeowners, especially if they are large or frequent.

Impact of Special Assessments and Insolvency

Special assessments can significantly impact homeowners’ finances, as they may not be anticipated in the annual budget. When HOAs fail to collect sufficient funds through monthly fees or special assessments, they can face financial instability or even insolvency.

Insolvency occurs when an HOA is unable to meet its financial obligations, leading to a potential deterioration in property maintenance and amenities, which can negatively affect property values. Homebuyers should inquire about the financial health of an HOA and any history of special assessments before purchasing a home.

Who Regulates HOAs in Ohio?

In Ohio, HOAs are primarily regulated by the Ohio Planned Community Law found in Title 53 Chapter 5312 of the Ohio Laws and Administrative Rules. This law outlines the administration, responsibilities, and powers of HOAs, including the establishment of planned communities, the duties of the HOA board of directors, and bylaws. Additionally, HOAs must comply with relevant federal laws such as the Americans with Disabilities Act and the Fair Housing Act.

Ohio legislation is continuously evolving to address emerging needs. Recent updates include:

  • Flag Displays: A recently passed law ensures homeowners have the right to display specific types of flags, which HOAs previously restricted.
  • Solar Energy Collection Devices: Senate Bill 61 (SB 61) now allows homeowners to install solar energy collection devices, as long as they do not infringe upon the HOA’s ability to manage common elements.
  • Electronic Communications: SB 61 also permits the use of electronic delivery for official notices, simplifying communication for HOAs.
  • Reserve Contributions: SB 61 clarifies requirements for reserve contributions, ensuring HOAs budget for the repair and replacement of major capital items.

Filing a Complaint Against an HOA in Ohio

If a homeowner has a grievance against their HOA, it is best to first bring it to the attention of the HOA board or manager. Many issues can be resolved through communication and dispute resolution within the association. For more serious complaints, homeowners can seek assistance from the Ohio Attorney General’s Office, which handles consumer complaints. Homeowners may also consider consulting a lawyer for legal advice and potential actions against the HOA.

Need Help Navigating HOA Challenges?

Navigating the complexities of HOA fees and regulations can be daunting. Whether you’re looking to buy or sell a home in Ohio, Ohio Broker Direct, Ohio’s premiere flat fee MLS listing broker, provides expert guidance and support throughout the process. With local knowledge and extensive experience, Ohio Broker Direct has saved our sellers millions of dollars in real estate commissions. We strive to ensure you are directed to the appropriate resources to help you navigate any HOA-related concerns.

Here are some relevant articles and sources related to HOA lawsuits in Ohio:

 Alleged Misuse of Funds

Architectural Request Denials

Discrimination Lawsuits

Ohio Broker Direct & its Brokers or Associates assumes no responsibility or liability for any errors or omissions in this blog, we advise all participants in buying or selling real estate to enlist the services of a Real Estate Attorney.

About the Author

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Joan Elflein, Principal Broker and founder of Ohio Broker Direct, has been a trailblazer in the real estate industry since 1983. She established Ohio Broker Direct, a flat-fee brokerage firm, to champion ethical practices and client empowerment. Joan's innovative services have saved Ohio sellers millions in commissions and earned her firm an A+ Better Business Bureau rating. With over a billion dollars in transactions, you can ensure Joan's decades of experience will provide top-tier professional service and personal care in every interaction. 

Tana Lantry, Senior Broker at Ohio Broker Direct, brings over a decade of expertise in business, commercial, and residential real estate. As the 2017 President of the Columbus Independent Brokers Association, Tana drove change and expanded membership growth. She excels in guiding clients through home buying/selling, commercial sales, and 1031 exchanges. With extensive experience in Self-Directed IRAs, Tana provides comprehensive guidance for real estate investments. Together, Joan and Tana offer unparalleled expertise and dedication, ensuring the highest standards of professionalism and care at Ohio Broker Direct.

Have Questions?

If you have any questions regarding the for sale by owner process, or how we can help you save money while selling your home, please don’t hesitate to contact us today. We will happily answer any questions you may have, and look forward to working with you in selling your home.

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