How does a condo association determine the amount of fees it charges?

In California, condo associations have the legal right to set their own fees, as long as they are reasonable and necessary to maintain their development. The amount of fees a condo association charges can vary from one association to another, and is typically based on the size of the unit, the amenities and services provided by the association, and the maintenance and repair costs for the grounds, buildings and other common areas. In general, the fees are determined through the budget process. The board of directors reviews the needs of the association for the upcoming year and estimates the costs for services, maintenance, and improvements. The board may also consider the need for reserves, which are funds set aside for emergencies or major projects. The budget will also detail any assessments to be made to condo owners in order to cover the costs and/or reserves. Once the budget is finalized, the condo directors approve the assessment amounts that must be paid by each condo owner. The condo association may also choose to increase or decrease the fees, depending on the financial situation of the association. It is important that the board reviews the budget and expenses on a regular basis in order to make sure that each condo owner pays the correct amount in association fees. The board also has the right to adjust the fee amount as necessary to cover any additional expenses or changing needs.

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How does a condo association determine the amount of fees it charges?

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