Delaware HOA fees: A comprehensive guide

HOA fees are one of the most important “nuts and bolts” parts of community living. They fund the services that keep shared property maintained, insured, and financially stable, and Delaware HOA laws come with specific collection tools when owners fall behind.
 

What are Delaware HOA fees?

Delaware HOA fees, often called assessments, are regular charges homeowners pay to fund the association’s common expenses, like maintaining shared areas, carrying insurance, operating amenities, and building reserves for future repairs.

In Delaware, many HOAs are governed by the Delaware Uniform Common Interest Ownership Act (DUCIOA). DUCIOA is the main statewide framework for common interest communities created since September 30, 2009, and for certain older communities that are subject to it (25 Del. C. § 81-116).
 

Who sets Delaware HOA fees?

Most HOA fees are set through the association’s annual budget and the allocation method in the declaration (for example, equal shares or a percentage allocation).

If your community is governed by DUCIOA, the board is required to prepare a proposed budget each year and share a summary with homeowners.

Owners must get notice and an HOA meeting must be held within the required timeframe to consider ratification. These steps help keep the budget process organized and predictable (25 Del. C. § 81-324).
 

What do Delaware HOA fees cover?

Most Delaware HOAs use assessments to cover three “core buckets”:

• Operating expenses: Day-to-day costs like landscaping, snow removal, trash programs, pool operations, gates, lighting, legal/accounting support, property management fees, and routine repairs.
   
• Insurance: Many communities carry master policies that may include general liability and property-related coverage for common areas.
   
• Reserves: Reserves are funds set aside for long-term repair and replacement projects like roofing on shared buildings, major amenity replacements, stormwater infrastructure, or large landscaping replacements. In DUCIOA communities, associations must keep clear financial records, including accounting records for the repair and replacement reserve. These records are expected to follow standard accounting practices so boards can plan long-term projects responsibly (25 Del. C. § 81-318(a)(1)).

Regular assessments vs. special assessments

Regular assessments are recurring dues budgeted for routine operating expenses, while special assessments are one-time charges approved to cover unexpected costs, major repairs, or projects not included in the annual budget.

Examples can include emergency structural repairs or capital improvements such as pool replacements. Boards often consult with property managers and financial management experts before approving a special assessment.
 

How are HOA fees collected?

Most HOAs collect fees through a predictable schedule: monthly, quarterly, or annually. Collection methods often include online payments, ACH, checks, and lockbox processing.
 

Do you have to pay HOA fees?

Typically, homeowners are required to pay HOA fees. In most Delaware HOAs, the obligation to pay assessments is part of the recorded declaration, meaning it “runs with the land” and applies to all owners who purchase into the community.
 

What happens if you don’t pay HOA fees?

If assessments are not paid, most HOAs follow a staged process that typically includes:

1. A delinquency notice and account statement
    
2. Late fees/interest as allowed
    
3. A demand letter and/or referral to collections
    
4. Lien and foreclosure

In DUCIOA communities, unpaid assessments automatically create a statutory lien on the home. If the balance keeps growing and all other collection steps fail, the law allows the association to move toward foreclosure under the rules that apply. Because this is a serious step, boards usually work closely with their attorney before taking action (25 Del. C. § 81-316).

Because foreclosure is high-stakes and fact-specific, boards typically coordinate closely with legal counsel before moving to that step.
 

How late fees and interest work in Delaware

Delaware law can allow interest to accrue on unpaid HOA assessments. Under DUCIOA, unless the declaration provides otherwise, interest on unpaid assessments accrues at the lesser of 18% per year or the highest rate allowed by law (25 Del. C. § 81-316(a)).

Your governing documents may set a different rate, within legal limits. Associations often also have late fees or collection costs authorized by the declaration/resolutions, so balances can grow if delinquency continues.
 

Why HOA fees go up

HOA fees can increase from year to year based on the community’s budget needs. If utility costs rise, a major repair comes due, or reserve funding needs to be strengthened, boards may adjust regular assessments to match. In many communities, the clearest way to understand a change is to review the annual budget summary and ask how the increase is being allocated between operating costs, insurance, and reserves.
 

Payment plans and “early outreach” for owners

If you’re behind, the most important move is early communication. Many associations prefer a reasonable payment plan to a drawn-out delinquency, because collections can be expensive for everyone. Ask who handles delinquencies.

Typically, this is handled by the property management company, the treasurer, or association counsel. Request a ledger and propose a realistic plan with dates. Even if the association can’t agree to every request, a written paper trail reduces misunderstanding.
 

Records and transparency

DUCIOA requires associations to keep certain financial and reserve records in an organized way (25 Del. C. § 81-318). Your community’s documents may also give owners the right to review some records, with details on what can be viewed, where, and under what conditions.
 

What to review before you buy into an HOA

Before purchasing in an HOA community, ask for the resale package or disclosure materials available for the community. Look for the current budget, the most recent financials, reserve information, and the assessment schedule so you know what’s due and when. It’s also smart to scan the HOA rules and the declaration to understand what the HOA maintains and what falls to the owner.
 

About FirstService Residential

As North America’s leading property management company, FirstService Residential serves Delaware communities with local expertise backed by national resources. Our teams support board members with meetings, recordkeeping, financial management, banking and insurance programs, resident communication, and 24/7 customer care teams. This way, board members can focus on long-term goals instead of day-to-day administration.

With over 25 years of experience across the state, we help HOAs, condo associations, high-rises, and master-planned communities operate smoothly and meet their goals with confidence. To learn how we can support your association, contact our Delaware team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.