Florida Community Association Manager Practice Exam

What is the minimum frequency at which a condominium or cooperative must collect assessments?

1. Monthly

2. Quarterly

3. Annually

4. Biannually

The correct answer is: Quarterly

The minimum frequency for collecting assessments in a condominium or cooperative is set to ensure that the association can maintain its financial stability and effectively manage ongoing operational costs. Collecting assessments quarterly allows the association to generate revenue on a regular basis to cover expenses such as maintenance, utilities, and other necessary services. By collecting these fees quarterly, associations can better manage cash flow and plan their budgets accordingly. This frequency strikes a balance, allowing enough time for members to make their payments while ensuring that the association has a steady stream of funds to operate efficiently. While monthly assessments might provide more immediate cash flow, they could place a burden on residents if they have financial constraints. Annual or biannual collections might lead to significant cash flow fluctuations, potentially jeopardizing the association's ability to meet its regular financial obligations. Hence, quarterly collection is established as a practical approach in the context of community associations.