Now, a new report from Realtor.com says a controversial law may open the door to higher HOA costs, pushing homeownership costs to unaffordable levels for seniors and retirees on fixed incomes.
In 2025, the median condo fee was $420, up 29 percent from 2019, the publication wrote, and HOA fees for single-family owners rose by 26 percent to $63 per month. But, when it comes to just how much they could go up, the answer remains unclear
The Law is Designed to Protect Against Fraud, but It's Raising Costs
The CTA was designed to curb the billions of dollars that the U.S. government says it loses each year to financial crimes. However, organizations like HOAs say that the cost of complying with the law is driving up costs, which are then passed on to homeowners, since many HOAs are non-profit entities. However, the legal system is still debating whether this ruling should apply to American HOAs, and a final decision is expected sometime in 2026.
According to the Corporate Transparency Act and Homeowners Associations Fact Sheet, board members who violate the filing requirement could be subject to civil penalties of $500 per day (which will be adjusted for inflation, and currently stands at $591 per day), criminal penalties of up to two years in prison, and an additional fine of up to $10,000, if the courts decide to include HOAs.
HOAs are Still Valuable to Retirees
With all that uncertainty looming, retirees may be wondering if they should still purchase a home in an HOA. For many, these organizations remain appealing because they offer benefits that aren't as readily accessible to those living alone.
Many HOAs include landscaping and snow removal in their annual fees, making it easier for retirees to keep up with home maintenance.HOAs continuously monitor and maintain property exteriors, allowing retirees to travel for extended periods without worrying about home security or maintenance violations, though they may need to ensure landscapers are aware they are away.Many offer community amenities, such as gathering spots, events, and activities that can help seniors stay active in retirement.If they are planning to leave a home to a loved one, they don't have to worry about the property's value decreasing, since strict community standards ensure neighbors keep up their homes.If you're worried about the potential increase in HOA fees, and you're looking to move to a home with an HOA, you may want to consider doing a bit more research before putting in an offer, and ask questions like:
What is the HOA's plan to deal with the CTA legislation? Are the HOA bylaws available for prospective homeowners to review? What is the HOA's yearly fee increase limit?Sources:
Realtor.comThe Wall Street JournalDawn Bauman, the CEO of the Community Associations InstituteCorporate Transparency Act and Homeowners Associations Fact SheetPerfectHOA.comDisclaimer: This article is for informational purposes only and does not constitute financial advice.
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