HOA Loan and Insurance Quotes

I understand that there is a 1% origination fee, payable at loan closing. Submitting this form puts me under no obligation. *


Subscribe to Blog

Your email:

Follow Us

Looking for answers?

condo association blogCan't find the answer you're looking for?  Ask your question here and we'll post it in our blog.

Browse by Topic

Condo Association Management Blog

Current Articles | RSS Feed RSS Feed

Condo Associations: The Budget and How Condo Fees are Calculated

Posted on Mon, Jun 15, 2009 @ 02:41 PM
  
  
  

Monthly condo fees are calculated by creating a budget for the condo association. The amount each unit has to contribute to the budget is determined by multiplying the amount of the budget by the percent interest that the unit has in the association (usually found on the unit deed), then divide the result by 12 to get condo fee due each month.

The condo association budget is made up of all the costs associated with running the condo association and the property. This could include master insurance, water & sewer charges, common electric, landscaping, snow removal, cleaning of the common areas, payment to a property management company, etc. What is included is really determined by the type of building, numbers of units, and by the trustees of the condo association. Smaller condo association buildings such as 2-4 family conversions may not budget any funds for landscaping, cleaning or management, preferring to save money and take care of those items themselves. In larger complexes there may also be costs associated with fire systems, elevators, swimming pool maintenance, etc. There is also a portion of the condo association budget that is given towards the reserves of the association. The condo reserves cover any high cost, long term maintenance items such as painting, roof replacement, re-pointing a brick exterior, etc., and also to cover any unexpected repairs/costs.

When you place an offer on a condo there are some things that you should request from the listing agent or condo trustee. These are copies of the Master Deed, Declaration of Trust, Rules & Regulations, Budget, and the minutes from the most recent condo association meeting.

Learn More About HOA Insurance

Tags: , , , ,

COMMENTS

Can somebody please tell me if condos with more than 50 units are required to have a "balanced budget" each fiscal year?

posted @ Friday, July 24, 2009 8:22 AM by Leo Cruz


I dont think there are any laws on condo association budgets. I beleive california has some laws regarding reserve levels though.

posted @ Sunday, August 16, 2009 9:39 PM by carmine


Post Comment
Name
 *
Email
 *
Website (optional)
Comment
 *

Allowed tags: <a> link, <b> bold, <i> italics