High Association Assessments? Here’s Why.
July 8, 2022
At Seabreeze Management Company, we often receive questions regarding high or increasing assessment costs. Hopefully, we can help you understand community association assessments.
The governing documents of the homeowner association determine their common expenses. During the annual budget evaluation, the board members choose the needed contributions. Community association assessments help pay for the services the association provides its members, including annual operating and planned expenses that extend over a certain amount of time. The yearly operating expenses usually include recurring costs, like management fees, landscaping, pool, janitorial, legal services, etc. Most associations have monthly contributions for reserve funds for more significant expenses surrounding community projects, preparing your community for the future. Remember, no two communities are the same. Each has its own needs and situations.
Increasing U.S. inflation rates should consider when it comes to high or increasing assessment costs. According to the U.S Bureau of Labor Statistics, as of June 2022, the annual inflation rate reached 8.6%. Individuals have been experiencing dramatic increases in personal expenses. Understandably, costs for the association have also increased, which means the need to increase assessments.
If unsure about what your assessments cover, call your management company. Request your community governing documents or the annual budget; these documents will provide more insight into your assessments.
Here at Seabreeze, our team is knowledgeable and well-versed in being able to provide that information for you. Call our customer service line at 800.232.7517 or email email@example.com.
People // Performance // Passion