Email Mike Email
Residential Real Estate
May 25, 2016

Top 5 Questions About Association Assessments

Sponsored Content provided by Mike Stonestreet - Co-Owner/Founder, CAMS (Community Association Management Services)

When it comes to community and condominium associations, one of the hottest topics is assessments, often referred to as dues. After 25 years of managing associations, we’ve learned that when it comes to finances and payments, there is a lot of discussion and, many times, confusion.

To help understand what association assessments are, how they work, and why they matter, we’ve provided answers to the top five questions we get asked about association assessments.

  1. What is my assessment? The assessment is the periodic amount due from each property owner to cover the association’s operating expenses, to pay the cost to maintain, repair and replace common elements, and to provide for reserve funds for major repairs or replacement of common elements in future years. Your assessments are due on the first of the month, quarterly, semi-annually or annually, which is determined by the board of directors and in some cases is outlined in the governing documents. Statements or coupons books are typically sent for assessments as a reminder of the amount due.
     
  2. Who determined the assessment amount? The developer sets the assessment amount initially. It is the responsibility of the board of directors to annually determine the amount of assessments each member will pay during the next year. Unless otherwise specified in your governing documents, the board also determines how the dues will be paid – as one annual payment, semi-annually, quarterly or monthly.
     
  3. How do I pay my assessments? Various associations and communities will have different systems in place for collection of payments. Additionally, as we mentioned, billing can occur in a variety of schedules, such as monthly, quarterly, semi-annually or annually. It is important to know when your assessments must be paid. Late payments can cost you more as interest or fees are added.

    An association management company, such as CAMS, can make collection and payment much easier for associations. Owners of properties in our communities have several options for paying assessments, including secure online payment with credit card and eCheck, automatic draft, automatic bill pay through your bank, and check. If your association is having a difficult time managing its assessments, consider enlisting the help of a management professional.
     
  4. What expenses are paid with assessments? The annual budget of the association states the expenses anticipated each year. Usually the expenses provide for items such as insurance, operations and maintenance of streetlights, stormwater ponds, common areas and entrances. The funds are not used to maintain any individual home sites or units.
     
  5. What happens if I don’t pay my assessment? The maintenance, management, utilities and other services incurred by the association are dependent on timely receipt of the assessments due from each property owner. Late payment will result in a late charge depending on your association's collection's policy, as assessments are due on the first of the month of your assessment cycle. In addition, the covenants, conditions and restrictions (or CC&Rs) generally allow the association to charge late fees and interest, and proceed with a lien on your property or in extreme cases, foreclosure for nonpayment of assessments.
At CAMS, our passion is helping associations of all sizes and types run efficiently and effectively for the good of the community. We encourage you to read our article on common property association terms to get started, and hen contact us today about how we can work together to make the management of your association, including those assessments, easier.
 
Mike Stonestreet is a 26-year veteran of the professional HOA management industry who has achieved one of the highest education-based designations in the field, that of Professional Community Association Manager (PCAM). Community Association Management Services (CAMS) has been a leading association management company since its inception in 1991. CAMS is a trusted provider of management services for more than 265 associations throughout North Carolina, South Carolina and Georgia. To find out how CAMS can benefit your community, call (910) 256-2021, email [email protected], or visit www.CAMSmgt.com.

Other Posts from Mike Stonestreet

Cams300pxx250pxblockadjune2018[1]
Ico insights

INSIGHTS

SPONSORS' CONTENT
Cfss headshots parker robert webversion 21422121214

Can an HOA Deny Solar Panels?

Robert Parker - Cape Fear Solar Systems
Billcoleman lopw headshot

Reaping The Benefits Of Patience

Bill Coleman - Live Oak Private Wealth
Atromitos micheallegady headshot

Walking the Walk: Creating and Sustaining “Speak Up Culture” at Work (or risk having your employees walk out on you)

Michealle Gady - Atromitos

Trending News

Inaugural Avelo Flight Touches Down At ILM

Johanna F. Still - Jun 30, 2022

New Hanover Community Endowment Names Advisory Council

Neil Cotiaux - Jun 30, 2022

Stepping Up Burgaw's Parks And Rec

Beth A. Klahre - Jul 1, 2022

Commercial Rises In Surf City

Cece Nunn - Jul 1, 2022

Studio Apartments Near Hospital Trade For $3.6M

Cece Nunn - Jul 1, 2022

In The Current Issue

2022 MADE Awards: Applications Open

The annual MADE awards program spotlights makers, artisans, small business owners and manufacturers in the tri-county area....


Propagating Growth In Pender

The past couple of years, with early pandemic-related travel restrictions and rise in remote working, has brought a renewed interest in gard...


Canapi Ventures Enables 2-year-old Startup Able

An investment by Canapi Ventures is increasing the capacity of a tech startup to serve commercial lenders. Canapi led the recent Series A ca...

Book On Business

The 2022 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100