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HOA 101

Number 4 of a 5-Part Series

TOPIC 4: WHAT DO MY DUES PAY FOR

— (BUDGET AND INSURANCE)
What do my dues cover?

There are two groups that exist within the Homeowners Association (HOA).

COMMON GROUP – This includes all single-family residents and all townhome residents. Dues are collected from all owners to pay for these expenses (“common” to all owners and residents in the neighborhood):

NOTE: Most parks in our neighborhood, including the dog park, are owned and maintained by the Town of Davidson. Common areas include landscaping between townhome buildings, the two fountains or water features, Clemens Place landscaping and pergolas, and some fencing not associated with Town of Davidson parks.

PEER GROUP – Only townhome and live-work owners pay these dues and they are based on square footage of each unit. Peer Group dues cover these expenses:

Building maintenance. Townhome building maintenance includes the following items:

Maintenance, repair and replacement of exterior brick, siding, shutters, windows, doors, wood trim, gutters and downspouts, and the underground drainage pipes between the building and the public storm drain system.

What insurance coverage should I have?

For the Common Areas, the HOA is only responsible for liability insurance. For the Peer Group, the HOA covers the liability and full building replacement at the time it was sold to the first owner. Homeowners should carry insurance to cover their betterments and improvements and loss coverage for the deductible of $5,000. Additional personal liability insurance may be advisable.

NOTE: Please call Tom Fischer (HOA Treasurer) at 704-894-0222 or your personal insurance agent to answer questions regarding appropriate coverage.

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