The assessment is the periodic amount due from each homeowner to cover the operating expenses of the common area and provide for reserve funds for replacement of common facilities in future years. Your assessments are due on the first of the month. Statements will be sent for assessments as a reminder of the amount due.
The County Planning Department typically requires an initial budget from the developer for each community that a developer proposes to build. This budget is set upon specific guidelines for utilities, landscaping, administration, etc. Reserve funds are monies set aside for future expenses due to the life expectancy of certain items: lighting, street resurfacing, pool equipment, etc. These amounts are then divided by the number of units built in a given phase of the development. Subsequent budgets are developed by the Board of Directors and adjusted periodically to meet anticipated expenses.
There is no concrete answer to this. The Board of Directors creates a budget that provide for the operations of the current year and for future repair and replacements. As with many budgets, costs go up. The membership will have the opportunity to ratify the budget at a meeting. The Board of Directors may approve an increased budget, increasing your assessment up to this percentage in order to cover increased costs of operating and maintaining the common area and sufficient reserve funds.
The maintenance and management services incurred by the Association are dependent upon timely receipt of the assessments due from each homeowner. Late payments could result in a late charge as assessments are due on the first of the month. In addition, the CC&Rs allows the Association to charge late charges and interest and proceed with a lien on your property, or foreclosure proceeding for nonpayment of assessments.
