For both current condominium owners and potential buyers, questions arise as to how the monthly condominium fee is determined and what it covers. The Bylaws of the Heritage Hunt Condominium I Unit Owners Association (HHCI) basically state that, except for those common expenses which may be specially assessed against one or more condominium units, the total amount of the estimated funds required for the operation of the condominium property as set forth in the association budget for the fiscal year shall be assessed against each condominium unit in proporation to that unit's proportional interest in the common elements.
In HHCI, there are 76 units and the governing documents establish each unit's assessment share as 1/76. Assessments are for the entire year but are billed and payable monthly in an amount equal to 1/12 of the yearly amount.
For each year the association's board of directors devlops a budget that estimates the total expenses, total investment income, and total other income. Total assessments to be paid by the unit owners are then determined by subtracting total investment income and total other income from total expenses. The monthly condo fee is equal to 1/76 x 1/12 of the total assessments. Unit owners are encouraged to participate in the budget-development process.
What the condo fee covers can best be understood by looking at the budget categories:
In developing the budget, expenses are offset by projected income from
investment of operating and reserve funds as well as other income, primarily
from late fees and reimbursements from the HOA for trash service. The remainder
necessary to balance the budget determines the required assessments.
Budgets are formally adopted by the board at the November board meeting and copies of the budget are mailed to each unit owner. Additionally, the current budget and monthly financial reports are kept in note books in the lobbies of each building.
The condo fee does not cover:
When a condo unit is purchased, two separate one-time Contribution to Working Capital fees are assessed at settlement:one to the condo association and one to the Heritage Hunt Homeowners Association. The condo fee is currently equivalent to three months of monthly assessments. The HOA fee is currently equivalent to 12 months of monthly assessments.