Association Fee
The association fee is sometimes referred to as the maintenance fee. This term is misleading. It is called the association fee because, although maintenance is a large part of the expense, many other factors enter into the budget. Some of these are electric usage, water, legal, audit, insurance, management, capital improvements and reserves. For these and other reasons, the monthly payments are best described as association fees.
Prior to each fiscal year, the Association budget is developed taking into account expense items for the past year plus any anticipated and inflationary factors. The Board of Directors approves the final budget. A copy of the budget should be distributed to all co-owners prior to the next fiscal year.