The monthly cost of owning in a newer planned community can differ significantly from the mortgage payment alone. Three items in particular deserve a close look.
Homeowner association dues
Dues fund shared amenities, landscaping, insurance and maintenance of common areas, and in townhome communities they may also cover exteriors. Ask what is included, how often dues have changed and how much is held in reserves.
Mello-Roos and special taxes
Many newer California communities fund roads, utilities and schools through special taxes such as Mello-Roos, which appear on the annual property tax bill. They can last for decades. Ask for the exact amount and how long it will continue.
Special assessments
An association may charge owners extra for a major project or unexpected repair. Review meeting minutes and financial statements for any planned or past assessments.
Where to find the information
- The association's governing documents and budget
- The property tax bill and the county's records
- Seller disclosures, which include information about assessments
Include it in your budget
Add dues and any special taxes to your monthly estimate alongside taxes and insurance, so the true cost is clear before you make an offer.
Ask early
Request the documents early in the process, before your inspection period ends, so you have time to review them and ask questions.
This is general information, not legal or financial advice.
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