Imagine a neighborhood community garden. Individuals might work on one particular plot, but the tools, the irrigation system, the fences, and the compost bins are owned collectively by the group. If one of the tools breaks, the group collectively pitches in to buy a replacement.  Living in a condominium works the same way. You own your unit. However, you also share common areas like the roofs, lobbies, pools and pickleball courts with your neighbors. Because everyone uses these spaces, everyone shares the costs to keep them safe and clean. This is the idea behind assessments. Everyone pays for shared spaces as a necessary part of making sure your community remains a great place to live.

What Exactly Is an Assessment?

In Utah law, an “Assessment” is a charge that the association imposes on a unit owner. An association’s governing documents will outline any restrictions on assessments, but generally these are set by the board based on the annual budget. Assessments can take the form of regular monthly or annual dues, determined by the board based on the funds required to meet the annual budget, or occasional special assessments, which usually require member approval. These charges pay for common expenses, or the costs to keep the entire property running and safe. According to Section 57-8-3, the Management Committee uses these funds for several things, including:

• Administration and management of the property.
• Maintenance of shared spaces.
• Repair of common areas.
• Replacement of parts of the building that everyone uses.

Homeowners should expect regular assessments, or dues, to go up over time. If they don’t, it can put the entire community at risk if there isn’t enough money to take care of repairs that will inevitably come. It is helpful to see these payments as an investment in your community, akin to a property tax. You are not just paying a monthly bill. You are making sure the building stays in good shape. This helps keep your property value high over time.

Planning for the Future: The Reserve Fund

The law requires associations to plan for future repairs. They do this through a reserve analysis and a reserve fund, made up of contributions from homeowner assessments. This is like a savings account for the community. It is used for big projects that last between 3 and 30 years. Examples include a new roof or a new parking lot. A healthy reserve fund prevents sudden and massive bills when parts of the building wear out. 

Every year, the management committee is required to include a line item in the budget for reserves. There is no minimum requirement for this amount, but it must be prudent, based on the needs of the community. If homeowners disapprove of this line item, they can veto it if 51 percent of the voting interests agree. This vote must happen within 45 days after the association adopts the annual budget. This is a key check and balance for every owner to help ensure that funds are being used wisely in the community. 

When the Unexpected Happens: Special Assessments and Deductibles

Sometimes the regular budget is not enough to cover needed repairs. If an association has not been building up its reserve funds, or if an emergency occurs that exceeds the amount of reserves available, the association may look to a special assessment to cover the gap. State law, for the most part, defers to an association’s governing documents to dictate the process for imposing a special assessment. Often, this includes a vote by the members, and usually occurs at a meeting called for that purpose. There is no limit on the amount that can be charged for a special assessment, or the duration of time the assessment must be paid (i.e., multiple payments split over the course of 1 or more years). If the community approves it, each homeowner will be obligated to pay it in full. For more information on this topic, see Advisory Opinion 2025-04. 

Your Responsibility: You Can’t Walk Away

Every owner has a legal duty to pay their share. You cannot get out of paying by saying you do not use the shared spaces. Section 57-8-26 clearly states that you must pay your share even if:

• You waive the use or enjoyment of any common areas and facilities like the gym or the pool.
• You abandon your unit or move out without selling the property to someone else.

Also, Section 57-8-25 says that when a unit is sold, the old owner and the new owner are both responsible for any unpaid bills. This remains true until the debt is fully settled. The stability of the whole community depends on every person paying their fair share. Personal usage does not change your legal obligation to the community.

What Happens if a Payment Is Missed?

When someone does not pay, it puts a burden on their neighbors. Because of this, the law allows the Management Committee to take certain steps to collect the money. However, the committee can only take some of these steps if their own governing documents allow it. The collection process can include:

• The creation of a lien against the property.
• Late fees and interest charges added to the debt.
• Termination of utility services that are paid as a common expense.
• Stopping access to recreational facilities.
• Requiring a tenant to pay rent directly to the association if the owner is more than 60 days late.

These measures might seem tough, but they exist to protect the neighbors who do pay. It ensures they do not have to carry the financial weight for those who do not follow the rules.

Conclusion: Building a Stronger Community Together

Assessments are the lifeblood of a condominium project. They provide the money needed to keep the lights on and the roof from leaking. When you understand where your money goes, you can see how it protects your home. Clear and open budgets lead to a better community for everyone. When everyone knows the plan and pays their part, the whole community stays strong and harmonious for years to come.