HOW DOES THE MASTER BUDGET WORK?

By Darlys Walker

Published October 10, 2018  

 

In any mixed use community, this is by far the most common budget question. To understand how expenses are allocated for the Master Association, you must first understand the common area of the Master as stated in the Declaration. The Declaration will detail what is considered to be part of the Master and how the percentage of ownership of the Master is allocated.

 

Letís say you have a Master Association whose Declarations states that the Master is comprised of a 3 acre main drive, 1500 sqft clubhouse and pool. The ownership is divided for the 3 members/Sub-Associations which are Retail 7%, Residential 80% and Office at 13%. The annual budget for repair and maintenance of the Master Association is $150,000. Therefore the Sub-Associations will owe the following annual assessments to the Master Association.

     Retail 7% x $150,000 = $10,500 annually
     Residential 80% x $150,000 = $120,000 annually
     Office 13% x $150,000 = $19,500 annually
 

Typically, the Annual Master Association fee is then allocated to the sub-association budget and allocated to each sub-association member as outlined in their Declaration. The Sub-Association will collect these as part of their fee and then pay the Master Association with a monthly/quarterly or annual payment.

 

However, there are many variations of the budgeting process, as well as the payment process. So the best advice is to meet with your legal counsel and LCAM to ensure you fully understand what is laid out in the Declarations and how they intermingle.


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Darlys Walker, Founder and CEO of Condominium Concepts Management, Inc. (CCM), is recognized for her straight talk, subject matter expertise, and valued insights regarding real  

state management, leasing, and HOAs. Her company serves a diverse portfolio of properties, from 16-units up to 600 as well as large mixed-use developments.  

 

   From its beginnings in 2000, CCM has become a well-respected asset manager and now works with over 100 associations with 16,000 units served by over 300 employees. Darlys and her team deliver resources and responsiveness through six regional offices - in Orlando, Miami, Jacksonville, Charleston, Nashville and Atlanta.

  

   Darlys Walker is best known for her passion and precision, understanding that the only difference that matters in today's demanding marketplace is service delivery ... doing what is promised and what is right. She knows that every community serves two masters ... the property owner/developer and the resident/homeowner. "If we are not equally responsive to both, we are not doing our job," she states.  

 

   Her clients say it best: "Darlys really knows her stuff" ... "at the top of her profession and it shows in the caliber of her clients" ... "delivers quality resources that match up well with needs and expectations that are really rigorous."  

 

   She is a licensed Real Estate Broker in four states, holds an Associate's Degree in Marketing and has earned the Accredited Real Estate Manager designation from the Georgia Institute of Real Estate Management. Also she is one of few certified as a Lead-Based Paint Abatement & Removal Trainer in Georgia.

  

   Darlys Walker and her team have been selected to manage the condominium conversion process and day-to-day operations for many of the Southeast's most high-profile condominium communities including luxury high-rises, mid-rises and garden-style homes. Most recently she has been recognized as an expert in 're-versions' of communities from condominiums to leased homes, as well as repositioning projects. A visionary and a tireless perfectionist, Darlys demonstrates hands-on leadership, working individually with each client and staff associate to achieve defined business outcomes and satisfaction.  

  

  For more information about Darlys Walker and Condominium Concepts Management, Inc. please visit www.condominiumconcepts.com.


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