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Purpose of HOA dues - Add/Edit/Delete FAQ's What your Assessments pay for!

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Purpose of HOA dues Question: What your Assessments pay for!   Answer: The association is responsible for paying all operating expenses, as well as maintaining funding for the reserve account. A brief outline is listed below of the items that your homeowner assessments contribute to: The general maintenance of all common areas, i.e. landscape services which include mowing, edging, tree trimming, chemical treatments, etc. Replacement of trees and shrubs Installation and maintenace of seasonal color changes for the entrance flowerbed (s). The cost of electricity to operate the entrance lighting and numerous irrigation systems throughout the community. The cost of the irrigation water itself. The cost of repairs and general maintenance of the irrigation systems, i.e. replacing broken sprinkler heads, valves, etc. The cost of miscellaneous common area repairs, i.e. minor landscape material replacements, etc. The cost of legal and tax services, including annual audit. The cost of insurance premiums, corporate and federal tax obligations The cost of correspondence letters to homeowners, processing ACC requests, postage, etc. Professional Management Fee Please keep in mind that this represents only a portion of the services that assessments provide for the community. Select Management Company has been selected by the Board of Directors of your association to provide professional management services. These services include collecting association assessments and maintaining the Association's books and records, enforcing your Declarations of Covenants, Conditions and Restrictions, performing regular property inspections and maintaining the common areas in a manner consistent with the Association's budget and the Board instruction. The Board of Directors have many responsibilities, including continual review of the Association's budget to decide if current assessments are sufficient in order to fund the community's upcoming annual expenditures, such as landscape maintenance, water and electrical increases for the common area lighting and irrigation. It is important to note that in September of 1999 a consumer protection law was passed which entitles homeowners to be informed that they are buying a home in an association and what it all involves. Mortgage lenders require the buyer to receive financial information on the association. The lender wants to ensure that the association has sufficient funds in their reserve account so that when writing the mortgage the buyer would not be obligated for a large assessment, which they would be unable to pay in addition to their mortgage payment and regular assessment each month. The reserve is also very attractive to new homebuyers, which is why the reserve is preserved and not utilized for on-going association expenses.   Back to top

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