HOA glossaryAssessments & accounting

What is an assessment?

The recurring charge levied against each lot to fund the association's budget, and the primary obligation of membership.

Also called: HOA dues, Regular assessment, Common charges

An assessment is not a fee for services rendered and not optional. The declaration creates the obligation, the board sets the amount by adopting a budget, and the charge attaches to the lot. Owners who believe they are paying for amenities they do not use are describing a preference, not a defence.

The share each lot pays comes from the declaration — equal per lot in most planned communities, by percentage interest in most condominiums. Changing the allocation is usually an amendment, not a board decision.

How much notice owners get before a new assessment year, and whether the budget can be rejected by the membership, are set by the documents and often by state law. Both are procedural steps worth getting right, because an assessment adopted defectively is one an owner can contest.

Why it matters to a board

Assessments are the association's only reliable revenue. Setting them too low to avoid a difficult meeting is the single most common cause of a special assessment three years later.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

The real math of HOA management

Related terms

Special assessmentA one-time charge levied on top of regular assessments to fund a specific expense the budget and reserves cannot cover.Operating budgetThe annual plan of expected income and expenses that determines what each lot is assessed for the year.DelinquencyAn assessment that has gone unpaid past its due date, starting the clock on the association's collection process.LienA recorded claim against a lot securing unpaid assessments, which must generally be satisfied before the property can be sold clear.Reserve fundMoney set aside over time for the scheduled repair and replacement of major common area components.LotThe individually owned piece of a community — a platted lot in a subdivision, or a unit inside a condominium building.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
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