You and your fellow residents fund the success of your community association, but those dollars contribute to so many things, it can be hard to know exactly what is happening with spending. Knowing how your money is being spent (and why costs fluctuate) is important–here are a few quick answers about how your HOA is likely managing your money, and why.
What do my assessment fees cover?
The assessments you pay to your association cover the current operating expenses and anticipated future financial obligations of your Association. That may include, but may not be limited to, landscaping maintenance, utilities, insurance, vandalism, facility maintenance, meeting room reservations, legal fees, accounting fees, bank charges, management fees, window cleaning, gutter cleaning, roof replacement, repainting, asphalt sealing, parking area striping, etc.
Why are my HOA dues the same as everyone else’s when I only have a 1 bedroom unit vs. the townhomes with 3 bedrooms?
The allocation of regular assessments (or HOA dues) is governed by the provisions contained within your community’s Declaration of Covenants, Conditions and Restrictions (CC&R’s).
I keep paying my monthly fees, but I don’t see anything happening around here.
Your monthly regular assessments (or fees) cover a number of items that may not be visible in the community, including insurance premiums, utility bills, garbage pick-up, meetings, bank fees, postage, copies, audits, legal fees, management fees, long term maintenance, and reserve funds for replacements and capital improvements. The board of Directors follows the budget approved in the annual general meeting to determine how the community’s funds will be spent.
If there is something you wish to receive clarification on or if you observe something that is in need of attention, please contact your community’s Association Manager with the details.
Will my assessments keep going up?
As a general rule, you should expect your monthly and / or annual regular assessments to change as costs change. While rising costs for items such insurance and utility costs directly affect your Association, they also indirectly affect your Association because of the impact they have on the companies that provide products and services for your Association as well.
It is not unusual for regular assessments to increase each year. As a matter of fact, there may actually be more cause for concern if your regular assessments are not being adjusted to keep pace with increases in costs as Association under funding may lead to significant special assessments in the future.
