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Nevada FID Licenses
CAD11424, CM10504

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Association Finances




An assessment is the owner’s financial obligation to the association during a given period of time – usually a year.

It covers the owner’s share of the common expense. If there are 100 units in an association, your share would be 1/100th.

An annual assessment may be paid on a monthly, quarterly, or annual basis.

Some associations also need to pay a “Special Assessment.” A special assessment is a one-time assessment often voted on by the owners to cover a major expense that may have been unexpected and not included in the annual budget. A special assessment may be levied for more than one year.

Important to Know

Your association may be set up for homeowner’s to pay their annual assessment on a monthly, quarterly, semi-annual, or annual basis.

There will be late fees and interest imposed on delinquent accounts.

It is your responsibility to pay your assessments timely, whether or not you have a coupon book or received-a-mailed-statement or not. A property may be foreclosed upon for delinquent assessments. Please review and understand the CCRs. Also, for your convenience and education, refer to a brochure published by the State of Nevada, Real Estate Division, contained in this website in the “Community Resources” section.

It is truly in a homeowner’s best interest to pay all assessments in a timely manner. If the delinquent account is turned over to Collections, the homeowner will also be responsible to pay hefty collection fees. The Board has no authority to waive or reduce any collection fees.

Budget Process

The Board diligently prepares a draft of each year’s annual budget.

The process typically begins in August; a copy of the draft budget should be mailed to each homeowner in October; the homeowners’ can ratify or reject the budget, usually in the month of November.

Unless a majority of the homeowners reject the draft budget on the budget ratification meeting date, it is deemed automatically ratified.

Annual Budget

If you would like to receive a copy of the current year’s budget, simply request it through your management company and schedule an appointment to pick it up.

There will be a nominal fee for copying and postage.

Reserve Study and Funding

The State of Nevada requires each association to have a Reserve Study done, minimally, every five (5) years.

Reserve funds are put aside to replace major components of the association’s common property.

Examples of components are asphalt paving if the community has private streets, concrete sidewalks, swimming pool equipment, playground equipment, tennis courts, security gates, etc.

The Reserve Study projects the lifespan and replacement cost of each component over a 30-year period.

The Reserve Study must be prepared by a Reserve Study Specialist. There are state mandated requirements to qualify as such.

If you would like to review a copy of the component list or anticipated expenses, please contact your management company.

Homeowner Entitlement

All homeowners are entitled to see the associations financials, such as income/expense statement, balance sheet, the budget and certain delinquency information.

Homeowners cannot see information specific to other homeowners.

To request a copy of the financial information available to all homeowners, please request it from your management company. There is a nominal charge for handling, copying and mailing.

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