From the EVP's desk: Why are assessment fees so high?

by Mike Conroy, MVF Executive Vice President

This is a very common question this time of year. Associations are passing their next-year budgets, residents are gearing up for the holidays and the year ahead, everything is costing more, and it seems like your homeowners association is increasing rates “just because.” I can assure you that in Montgomery Village, “just because” is not the case. Each association, Montgomery Village Foundation (MVF) included, takes its fiduciary duty very seriously; proper budgeting and management of association funds are only  one portion of that duty of care to the community.

So, what drives an assessment increase? Generally, it’s the increased cost of doing business. Service contracts, cost of materials, cost to replace assets and contributions to reserves (for future replacements) all vary year-over-year and tend to increase. Managers work to negotiate contracts (some multi-year for services and lock in rates), analyze underutilized services, and realign savings and expenses to actual functions and needs in the community.

In Montgomery Village, homeowners pay into two associations that have separate, but equally important, responsibilities within the community – MVF and your local homes corporation or condominium association. Each entity has its own board of directors, duties and assessment fees and manages separate services. For associations that are managed by MVF, homeowners make one payment, and it is allocated accordingly to the separate entities.

But how does the assessment compare to other HOAs? The average HOA fee in Maryland is $401/month ($4,812/year). The average fee in the US is lower at $259/month ($3,108/year). For many Village homeowners, the average fee is about $145/month ($1,740/year) and that includes both the MVF/DU and local HOA assessments. MVF/DU is only $811.68/year (for 2025), a little less than half of the total assessment paid and on par with what neighboring planned community Reston, Virginia residents pay ($848/year).

So, all-in, your quarterly fee for both associations is about the same as the state monthly average. And for that, residents enjoy everything that MVF maintains (pools, community centers, sports courts, amenities, parks, playgrounds, lakes, events, advocacy, administration, representation, community property), and what your homes corporation or condominium association takes care of (parking, trash, landscaping, association property maintenance, private property inspection, service contracts). When you break it down, that is a lot for less than $5/day!

If you take all of this into consideration, I would offer that there are a lot of things we all do that cost more per day. And with that perspective, I would ask you to reconsider the question, “[why] are assessment fees [so] high?”