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HOA Working Capital Fee

Definition of term

A HOA working capital fee is a charge assessed by some homeowner associations (HOAs) to help cover the cost of unexpected repairs or expenses. The HOA working capital fee is used to cover a variety of costs, including but not limited to unforeseen repairs to common areas, the cost of HOA insurance, HOA employee salaries, or HOA legal fees. HOAs assess the fee annually, and the amount varies depending on the HOA's budget and needs. Some HOAs assess a working capital fee in addition to monthly dues, while others include the fee in the monthly dues.

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