How much is the Working Fund Contribution at the Reunion West POA?
It is about two months of assessment.
Understanding the Working Fund Contribution: What It Means for Our Community
As part of our ongoing commitment to maintaining and enhancing the quality of life in our community, we want to clarify the purpose and structure of the Working Fund Contribution fee that is required when new homeowners join our association. This fee is essential to the financial health and sustainability of our property association (POA).
What is a Working Fund Contribution?
A Working Fund Contribution is a one-time fee paid by new homeowners when they purchase a property within our community. This fee is allocated to our operations fund, which is used for major repairs, replacements, and improvements to our common areas and community amenities. These funds ensure that we can address large-scale projects and unexpected expenses without placing additional financial burdens on our existing members.
How is the Working Fund Contribution Calculated?
Our community has decided that the Working Fund Contribution will be equivalent to two months of regular POA assessments. This approach ensures that the contribution is fair and proportionate to the financial structure of our POA.
Why Two Months of Assessments?
Basing the Working Fund Contribution on two months of assessments has several advantages:
- Fairness and Proportionality: By linking the contribution to the existing assessment structure, we ensure that the fee is proportional to the financial commitments already in place for our homeowners.
- Financial Stability: This contribution boosts our operations fund, allowing us to plan for future projects and maintenance needs without sudden increases in regular assessments.
- Community Investment: New homeowners make an initial investment in the community, promoting a sense of ownership and commitment to the upkeep and enhancement of our shared spaces.
How is the Working Fund Contribution Used?
The funds collected from Working Fund Contributions are deposited into our operations fund. This fund is designated for daily maintenance and major repairs. By maintaining a robust operations fund, we can address these significant expenses without needing to levy special assessments or increase monthly dues unexpectedly.