QUESTION 5: DOES THE DEVELOPER ESTABLISH THE
ASSESSMENT RATE?
ANSWER: Assessments are fees levied against all properties within a community
association for the purpose of maintaining the common areas and related administrative
functions of the association. The developer creates the initial budget, setting out the
services and expenses of the association. The developer board then adopts the annual
budget and sets the rate of the assessments based on what each lot should pay.
QUESTION 6: IS THE DEVELOPER EXEMPT FROM
PAYING ASSESSMENTS?
ANSWER: In some cases, the developer drafts the documents so that it's exempt from
paying regular assessments. Rather, the developer assumes the responsibility for funding
the budget until there are enough homeowners paying assessments to cover necessary
expenses and transition to homeowner control.
