What is Assessment?

Also called: HOA dues

An assessment is the mandatory payment each owner owes the association to fund shared expenses, usually billed monthly, quarterly, or annually.

Regular assessments — what most people call dues — fund the operating budget: insurance, landscaping, utilities, management fees, and reserve contributions. The amount is set by dividing budgeted expenses across owners according to the allocation formula in the declaration, which may be equal shares or based on unit size or percentage interest.

Assessments are not optional and generally cannot be withheld as leverage in a dispute. Nonpayment triggers late fees, interest, suspension of privileges such as pool access or voting, a lien on the property, and in many states eventual foreclosure.

Boards raise assessments when costs rise or reserves are underfunded. Many governing documents cap how much the board can raise dues in one year without an owner vote — a number worth knowing before budget season.

Fund operations plus reserve contributions.
Cannot usually be withheld, even over an unresolved complaint.
Annual increases may be capped by the CC&Rs without an owner vote.

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Related terms

Special AssessmentA special assessment is a one-time charge levied on owners to cover a large expense that the regular budget and reserves cannot absorb.Reserve FundThe reserve fund is savings the association sets aside for predictable major repairs and replacements, kept separate from the operating account.DelinquencyDelinquency is an owner's unpaid assessment balance past its due date, triggering the association's collection policy.LienA lien is a recorded legal claim against an owner's property securing unpaid assessments, fines, interest, and collection costs.Operating BudgetThe operating budget is the association's annual plan of expected income and day-to-day expenses, and the basis for setting assessments.

Answers straight from your own documents

Melo tells residents what Assessment means in your community — citing the exact page of your CC&Rs, budget, or rules.