Commercial share

Understanding Commercial Share in a Homeowner Association (HOA)

Commercial share is a term used in homeowner associations to indicate the portion of the HOA’s budget that is allocated for the commercial property owners in the community. This allocation is typically made in proportion to each commercial property’s size or assessed value. For instance, if a commercial property makes up 20% of the total square footage or assessed value in the community, it would approximately bear 20% of the HOA’s budget in the form of dues or assessments. This ensures that each member of the HOA, including commercial property owners, contributes their fair share towards the maintenance and improvement of common facilities and services.

Commercial share is a crucial concept in mixed-use communities where residential and commercial properties coexist. It helps maintain a balance in the financial burden among different types of property owners and ensures the equitable distribution of costs for shared services and amenities. The calculation of commercial share can be a complex process and may involve considerations such as the usage of common areas, the level of services required, and the nature of the commercial activities carried out in the property.

It is important for both residential and commercial property owners to understand how their HOA calculates and applies the commercial share. This understanding can help them anticipate their financial obligations and participate more effectively in the HOA’s decision-making process.