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

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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