Associations, whether large or small, depend heavily on money to operate. Every aspect of keeping a community safe and running smoothly has a cost associated with it. Too often, associations make the news for negative financial reasons—fraud, bankruptcy, or other shortfalls that disrupt the community. However, an association that’s being run effectively combined with a strong local economy could have more money than expected. That’s great news for the association, but it creates the question of how that budgetary surplus should be used.
Association fees are an integral part of keeping a planned community or condominium building running smoothly. They’re key to paying bills for routine services and amenities and, in some communities, can contribute to additional bonuses for members, like social events. But when members don’t pay their association fees it can very negatively affect the community. Even if a few members don’t pay their assessments on time, an association can face serious financial problems.