HOA shared infrastructure cost allocation

This is a question of HOA shared infrastructure cost allocation.
I am considering the purchase of a townhouse condominium in a large mixed HOA community.
The privately owned 900 acre gated community is divided into two areas of approximately 450 acres each.
Area 1 has 1,300 condominium households divided into 9 associations of mostly three story apartments and small townhouses.
Area 2, developed in stages over subsequent years, has 500 single family homes divided into 10 - HOA associations.
The developer’s $ 4 million dollar annual infrastructure cost, for streets, gates, lighting, landscape , security, reserves, etc , is assessed by household to all unit owners equally. Meaning the 1,300 condominium units shoulder 72 % of all infrastructure cost including streets, gates, lighting, landscape , security, reserves etc provided to the single family section. The single family section benefits 100% from all infrastructure services, some exclusively, but contributes only 28% to defray the cost.
The governing documents of the HOA entities do not provide for allocation of the developers infrastructure cost except to state the BOD may hire a management company. The single client management company entity, established by the developer, annually presents each of the 19 HOA ‘s a single digit line item proposed budget assessment each year for prospective approval of each of the 19 HOA memberships. Accordingly, when unit owners approve the BOD recommended annual operating budget they automatically approve the annual $ 4 million dollar per household infrastructure assessment.
I realize County, City and State services are generally assessed based on market value. I would be pleased to know of other equitable cost allocation formulas used by HOA organizations confronting similar circumstances.
Many thanks,

Leon Reid
[email protected]

Agree with Tim. Your cost works out to around $185 per unit per month to maintain the 900 acre community overall.

You have 9 apt/townhouse associations and 10 sf associations. In your shoes, I would be more concerned about how your prospective sub-association might allocate costs among apartments and townhouses (if they are mixed).

you have performed due diligence

you do not like the numbers

therefor

do not purchase

case closed

Typically.........with a condo the HOA owns the building and is responsible for maintaining it. With single family homes, the owner is responsible for maintaining it. Therefore the cost of maintaining the condos is MUCH, MUCH higher and the dues should therefore be higher.

Both condo and homes use the same amount of common area, but the condos also need money put aside for the building maintenance.

Steve makes a very good point, Leon. Condo buildings need not only more $ in their operating budgets but also more set aside in their reserves budgets. So, yes their dues would be higher.

I'm on the board of a high rise condo HOA. We have a "special benefit area" of floors 3-25 whose owners pay more for elevator operation, for all the hallways & stairwell maintenance (op. budget) & their reserves components, 3-25. A small fraction of residences and also the commercial suites pay less because they don't have those components..

All residents also have a square foot variance whereby the larger units pay more based on the assumption they use more water, gas, & have more of the building exterior to insure. Whether any of this makes sense, it's in our CC&Rs that the declarant filed with the state and w'eve never revised them.