How are dues/assessments determined for my Association?

The dues for an Association are determined by the governing body, the Board of Directors. The Association Manager will draft the yearly budget and present the information to the Board for review. This budget consists of the expenses for a community and any additional increases that may be expected in the coming year. In addition to looking at the operating costs, the Board will also need to consider how much the Association needs to save in reserve for upcoming projects. Ideally, a community should save between fourteen and twenty-one percent of dues collected for projects. Using this information, the Board will determine the dues for the following year. Finally, the budget is presented to the owners of the Association for approval and ratification.