How are assessments determined within an association?

Assessments within an association are determined primarily by the governing documents of the community, which specify the methodology for calculating the assessments based on various factors. This often involves using a system of percentages or assessments that reflects the proportionate share of the costs attributable to each unit, such as square footage or other designated measures.

When the governing documents outline that assessments will be determined equally for every unit, this means that each member pays the same amount, regardless of the size or value of their unit. Conversely, if assessments are determined by percentage allocations detailed in the documents, they ensure fairness and reflect the relative benefits or use of communal resources by each unit.

This approach maintains a structured and equitable distribution of financial responsibility among homeowners, allowing the association to fund its operations, maintenance, and any other community projects effectively. Other methods, such as basing assessments solely on property value, setting a fixed rate regardless of property specifics, or adjusting assessments annually solely for inflation, do not align with the structured approach typically defined by association rules and policies.