HOA Basics in Billings: Fees, Covenants, and Expectations

Thinking about buying or selling a home in a Billings community with a homeowners association? You are not alone. HOAs are common in newer subdivisions, condos, and townhome projects across Yellowstone County, and they can shape your budget and day-to-day living. In this guide, you will learn what HOAs do, what fees typically cover, how covenants affect your plans, and what to review before you sign. Let’s dive in.

What an HOA is in Billings

An HOA is a private association that manages common areas, enforces covenants, and collects dues to fund maintenance and services. In Billings, you will see them in planned subdivisions, condominium buildings, townhome communities, and some gated neighborhoods.

Newer developments and higher-density housing are more likely to have mandatory HOAs. Many older single-family areas may have voluntary neighborhood groups or no association at all. Always ask your agent or the seller which type applies to the property you are considering.

How HOAs are governed

Core documents you should know

• CC&Rs: Covenants, Conditions and Restrictions are the primary rules that run with the land.
• Bylaws: Set the board structure and internal processes.
• Articles of Incorporation: Many HOAs are formed as nonprofit corporations.
• Rules and policies: Day-to-day items like parking, exterior changes, and pets.
• Resale or estoppel certificate: Summarizes dues, assessments, and any outstanding amounts when a home is sold.

Boards, meetings, and management

Owners elect a board that adopts budgets, enforces rules, and hires vendors. Many associations contract with a professional management company for accounting, maintenance, and administration. You should expect regular meetings and published financials.

Laws and fair housing

HOAs operate under their governing documents and applicable state and federal law. Federal Fair Housing rules apply to discrimination issues. For state-specific procedures, consult local resources or an attorney rather than relying on general assumptions.

HOA fees and budgets

Common fee types

• Regular assessments: Monthly or quarterly dues for operations and reserves.
• Special assessments: One-time charges for big repairs or when reserves fall short.
• Other fees: Transfer or resale fees, application fees, fine processing charges, returned check fees, and estoppel fees.

What dues often cover in Billings

• Landscaping and common-area upkeep, including entry features and signage
• Snow and ice removal on private roads or shared driveways
• Private road maintenance and paving
• Trash and recycling if the HOA contracts service for owners
• Insurance for common elements or a condo master policy
• Utilities paid centrally, like irrigation water or common-area electricity
• Management, legal, accounting, and administrative costs
• Amenities such as a pool, playground, or clubhouse
• Reserve contributions for long-term items like roofs or paving

Why fees vary

Fees depend on property type, age of buildings, included utilities, amenities, and the scope of private infrastructure. Condo communities and amenity-rich neighborhoods typically have higher dues than a simple single-family subdivision with minimal common areas. Avoid relying on broad “average dues” for Billings. Ask for the current budget and financials for the specific community you are evaluating.

Reserves and reserve studies

Reserves are funds set aside for major future projects. A professional reserve study estimates costs and timelines for replacements. An HOA with up-to-date studies and adequate reserves lowers your risk of large, unexpected special assessments. If reserves look thin, ask about plans to build them up.

Covenants and everyday rules

Common restrictions you will see

• Architectural controls for exterior changes like paint, roofing, fences, and additions
• Landscaping standards and yard maintenance
• Parking rules, including RVs, boats, or street parking limits
• Pet rules and quantity or type limits
• Rental guidelines, including short-term rental restrictions
• Nuisance, noise, and signage standards

The architectural review process

Most HOAs require you to submit an application for exterior changes to an Architectural Review Committee or the board. There are usually written guidelines and timelines for decisions. Build in time for review before you schedule work.

Enforcement and owner expectations

Associations typically use written notices, fines, and, in some cases, suspension of amenities to enforce rules. They may place liens for unpaid assessments. Boards should follow procedures in the CC&Rs and bylaws. As an owner, you should expect clear communication and consistent enforcement.

Buying or selling in an HOA community

What buyers should review

Request a complete resale packet during your contingency period. Key items include:

• CC&Rs, bylaws, articles of incorporation
• Rules, regulations, and architectural guidelines
• Current budget, year-to-date financials, and reserve study
• Board meeting minutes from the past 12 to 24 months
• Insurance declarations and what the master policy covers
• Resale or estoppel certificate showing dues, balances, and special assessments
• Any outstanding violations or fines for the unit
• Leasing rules and any owner-occupancy requirements
• Planned capital projects, pending special assessments, or litigation

What sellers should do early

• Order the resale or estoppel packet early to avoid closing delays
• Confirm the HOA’s turnaround time and fee for the packet
• Resolve or disclose any outstanding fines or violations
• Verify your contact information is current with the association or manager

Red flags to watch

• Frequent or large special assessments
• Missing or outdated financial statements or no reserve study
• High owner delinquency on dues
• Ongoing litigation involving the association
• Restrictive rental rules that affect your plans

Billings-area considerations

Billings experiences four true seasons. Snow and ice management, freeze-thaw cycles, and private road maintenance are common HOA priorities. Review how snow removal and paving repairs are handled and funded.

Water and landscaping matter in our region. Many HOAs manage irrigation systems or support water-wise planting choices in common areas. Check how watering costs are allocated and what landscape standards apply to owners.

Some neighborhoods include private infrastructure such as gated entries or private roads. Verify what is private versus public with City of Billings or Yellowstone County departments, and confirm who pays for long-term upkeep.

Local resources can help you verify details: the Yellowstone County Clerk and Recorder for recorded CC&Rs, City of Billings Planning and Public Works for infrastructure questions, local title companies for lien verification, and the Billings Area Association of REALTORS for transaction practices.

Quick HOA checklist

Buyers

• Get the HOA name, contact, and current monthly or quarterly dues
• Request CC&Rs, bylaws, rules, budget, financials, and reserve study
• Obtain the resale or estoppel certificate early in escrow
• Review board minutes for upcoming projects or disputes
• Confirm what utilities and maintenance the dues include
• Verify parking, pet, and rental rules match your plans

Sellers

• Order the resale or estoppel packet as soon as you list
• Clear any outstanding balances or violations when possible
• Gather insurance information and any architectural approvals on file
• Coordinate with your title company on HOA payoff and lien releases

For both

• Read the CC&Rs and rules closely before closing
• Ask questions about reserves, special assessments, and upcoming projects
• Consult a local real estate attorney for complex legal interpretation

If dues are not paid

HOAs often assess late fees and interest, can levy fines, and may suspend amenity access. Many can record a lien for unpaid assessments and, in some cases, pursue stronger remedies depending on governing documents and applicable law. Unpaid dues and liens can delay or block a sale until resolved. Always request the resale or estoppel certificate so you know the account status before closing.

Next steps

If you are eyeing a home in a Billings HOA or preparing to sell, getting the documents early and asking the right questions will save time and stress. You do not need to navigate it alone. Reach out to the local team you can trust for clear guidance, practical checklists, and a smooth process across Montana. Connect with Tyree Real Estate, Inc. to talk through your goals and next steps.

FAQs

How much are HOA fees in Billings?

• Fees vary widely by community and amenities; review the specific HOA budget, financials, and resale certificate rather than relying on averages.

What do HOA dues usually cover in Billings?

• Common-area maintenance, snow removal on private roads, private road repairs, trash or recycling if bundled, insurance, utilities for shared areas, management, amenities, and reserves.

What is a resale or estoppel certificate in an HOA sale?

• It is a document that shows current dues, outstanding balances, special assessments, and other key info for a specific unit, typically ordered during escrow.

Can an HOA restrict rentals in Billings?

• Many HOAs set rental limits or rules in the CC&Rs; review the documents carefully if you plan to rent short term or long term.

What are signs of a financially healthy HOA?

• Up-to-date financials, a current reserve study, stable reserves, clear maintenance plans, and transparent communication in meeting minutes.

What happens if the HOA is behind on maintenance?

• You may see deferred projects and risk of special assessments; review the reserve study, minutes, and upcoming project lists to understand timing and costs.