Considering Allocation of Common Costs | <– Date –> <– Thread –> |
From: Jim Bronson (jimbronsonashlandgmail.com) | |
Date: Tue, 9 Mar 2021 15:37:16 -0800 (PST) |
*Considering Allocation of Common Costs* The HOA allocates *common costs* monthly or quarterly; each unit pays their* proportion* of the total For Example *Common Costs* = electricity + water + sewer + internet + garbage/recycling + insurance for common areas + professional cleaning of common house + funding for other maintenance + reserves + added features (like a hot tub) + *committee activities* *Total Common Costs* *EXAMPLE: An Accounting Algorithm for Allocating Common Costs* * Based on # of adults and unit square footage:* *Each Unit is given an algorithm called Common Cost Proportion: CCP * *CCP* = (Proportion of Adults + Proportion of Sq. Ft.)/2 Unit M N O P Total # Adults in Unit 1 2 2 4 9 Unit Sq. Ft. 1000 1500 1500 2000 6000 *CCP* for M = (1/9 + 1000/6000) /2 = .1388 *CCP* for N = (2/9 + 1500/6000) /2 = .2362 *CCP* for O = (2/9 + 1500/6000) /2 = .2362 *CCP* for P = (4/9 + 2000/6000) /2 = .*3888* 1.0000
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