Each of the following statements regarding community association assessments are true EXCEPT:

• A. An annual assessment may be paid on a monthly, quarterly, or annual basis
• B. An assessment is the owner's financial obligation to the community association during a given period of time
• C. An assessment for an owner's share of the common expenses is a binding legal obligation based on the community association's governing documents
• D. Assessments penalize residents for violating association rules

Answer: (D)

Assessments are regular charges that owners must pay to cover the community’s shared expenses. That’s why they’re commonly offered in different payment frequencies—monthly, quarterly, or annually—so owners can manage their budgets. The amount is tied to the owner’s share of the common expenses and the obligation to pay is a binding part of the ownership and the association’s governing documents. In short, assessments are the ongoing financial duties to fund the community’s operations and upkeep, not penalties.

Penalties for rule violations, on the other hand, are typically separate fines or enforcement actions defined in the association’s rules and enforcement provisions. They are not the assessments themselves. So the statement suggesting that assessments penalize residents for violating rules is not correct.