top of page

The Importance of Assessments

Assessments form a crucial aspect of your Association's operations as defined by the Declaration of Covenants. They play a pivotal role in ensuring the financial health of your community. By promptly paying assessments, homeowners enable the Association to cover essential expenses and reserve funds for future expenditures.


Image of business professionals working on financial plan

Your Association incurs various bills that require timely payment, including insurance policies, state fees, taxes, and maintenance of amenities like street lights, landscaping, and trash removal. The prompt payment of assessments is vital for ensuring these expenses are met, and services are provided without interruptions. Additionally, assessments should be budgeted towards the Association's reserves, which facilitate the maintenance and replacement of assets such as roads, sidewalks, and other amenities when needed.


It's important to recognize that a well-structured assessment schedule can significantly impact your home values. Prospective buyers, as well as mortgage lenders, closely scrutinize the reserve study and Association financials included in the disclosure package. If the reserves are underfunded, it raises the likelihood of special assessments or major increases. This information can impact your ability to pay your mortgage or result in the Association placing liens against your home.


In recent years, the prices of various commodities and services have seen significant increases. Associations have been particularly affected by rising gas prices, labor costs, shortages, utility rate hikes, and supply constraints. Understanding these factors and the necessity for regular assessment increases is vital for successful community management. By anticipating and planning for increases in the 2023 budgets, homeowners can contribute to the financial stability and ongoing well-being of the community.


Remember, every owner playing their part by paying assessments on time and comprehending the reasons behind regular increases plays a critical role in the effective management of your community.


Need advice about your community assessments?




bottom of page