Coming Home Magazine

FEES EXPLAINED Demystifying all those association fees. Everyone knows that living in a community association comes with paying fees. While each managed community operates differently, you might have to pay monthly dues and other charges from time to time. These are some payments you may see as a community association resident. INITIATION FEES An initiation fee is a one-time payment to the association when a property transfers from one owner to another. Also known as a transfer fee, working capital contribution, new owner fee, or buy-in fee, it's nonrefundable and typically paid by buyers at the closing of a sale. In new communities, initiation fees fund association operations, like maintenance, repairs, and insurance costs. More established communities may put these monies in a reserve fund for future improvement projects. These fees tend to range from two times the price of monthly dues to a full year's assessment total, but your association's governing documents will have the details about allocations and amounts. DUES Dues or assessments are regular fees that residents pay monthly, quarterly, or annually. The community's primary source of income, they cover things like: Dues are set by the board and based on all the expenses that keep the association up and running. The community's type, size, services, and location factor into due amounts, but ultimately, this cash is meant for good. From ensuring the neighborhood looks beautiful to keeping amenities in tip-top shape, dues are a key part of what makes your community a great place to live. SPECIAL ASSESSMENTS Special assessments are the "break glass in case of emergency" option for associations needing extra cash. Only used under certain circumstances, they allow boards to request a one-time payment from residents to address unexpected expenses, enhancement projects, or major repairs that don't warrant dipping into reserves. A true last resort, there are guardrails that limit the amount that can be called for. Check community documents and relevant laws for specifics. FINES Community associations have rules—and everyone is expected to follow them. If you fall short, you may receive a fine. Usually, you'll get a warning before one is issued, but always pay your fine ASAP. Fines can incur late fees and interest that can add up if ignored, and nobody wants unnecessary charges to get in the way of enjoying the community. All communities are unique, and each has its own way of doing things. If you want to learn more about the fees charged in your community, reach out to your board of directors or community manager; they're there to help! • Maintenance • Landscaping • Shared utilities • Insurance • Management staff • Repairs • Amenities • Administration • Security • Reserve funds "From ensuring the neighborhood looks beautiful to keeping amenities in tip-top shape, dues are a key part of what makes your community a great place to live." COMING HOME MAGAZINE 33

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