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

Condo associations in New Hampshire must set their fees in accordance with the Condo Act. The Act requires condo associations to establish a budget for the upcoming year and to use that budget to determine how much money is needed to cover day-to-day expenses, plus any special programs that the association wants to pursue. The amount of money that a condo association collects in fees depends on how much of the annual budget each unit is responsible for. The first step in determining the amount of fees is to estimate the yearly expenses of the association, including all fixed costs, such as insurance, repairs, and maintenance, as well as any additional expenses (such as legal fees). The association must also account for any expected income from non-owners, such as rent from tenants. After these expenses are estimated, each unit’s share of the total expenses can be calculated. This amount, also known as an assessment or assessment fee, is then divided by the number of units in the association and collected in monthly installments. In some cases, the condo association may wish to add additional fees in order to fund special projects or repairs. If a condo association wants to add an additional fee, it must be approved by the majority of the unit owners. Once an additional fee has been approved, it must be added to each unit’s assessment to make sure all owners are equitably contributing to the cost.

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

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