Maintenance fee

The amount established (or 'levied') by an owners association against owners of a common-interest subdivision for maintenance, improvements, upkeep, and management of the association's property. Assessments are generally levied to each owner/member in proportion to the ownership interest, or combined ownership interest of each owner. The manner in which the assessment will be levied will be determined upon the declaration of the common-interest owners association. Methods used to determine the proportional assessment to owners include: equal assessment of fees levied against owners of each interval or unit and assessment based upon the size of the unit owned and the number of units or intervals owned. Maintenance fees are generally assessed and collected on an annual basis at the beginning of each fiscal year. Some common-interest resorts, particularly in resort locations where maintenance costs are prohibitive, allow for quarterly or semi-annual payment of the fees. Assessments are generally divided into three categories: operating funds, reserve and replacement funds, and management fees. Some common-interest resorts allow annual property taxes to be collected as part of the maintenance fee assessment. Should an owner/member fail to pay the assessment in full or in part the association that governs the property may suspend the use rights of the member/owner until such time the payments are made. The association may also take foreclosure action as defined in the declaration governing the association.