Assessment Allocation
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ALLOCATION OF ASSESSMENTS

Proportionate Share. A member's share of regular and special assessments is defined by the association's governing documents. The allocation is set by the Declarant when the governing documents are created. Assessments are generally allocated in one of the following ways:

  1. Pro Rata (Variable) Rate. Assessments are assigned on a percentage basis to each unit or lot. This is often by square footage. Even though payment of assessments are disproportionate, the courts have ruled that such payment schedules are reasonable and do not violate public policy. (Cebular v. Cooper Arms.)
  2. Uniform Rate. Members pay the same amount regardless of the size of their units/lots.
  3. Blended Rate. Assessments are assigned using a uniform rate for some budget items and a percentage or variable rate for other expenses, which are then blended into a amount assessed against units/lots. This method tries to allocate expenses in a manner that accounts for utility usage and/or other common expenses. rates often result in short-term errors as well as long-term errors

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Adams Stirling PLC