The assessments that each homeowner pays go toward the upkeep of the common areas on the property. This includes but is not limited to such items as landscaping, common area water & electricity, upkeep of access gates (if applicable), payroll (if applicable), pest control, garbage pickup and water treatment i.e. water softener (if applicable), etc. A portion of the homeowner assessment goes to pay administrative fees such as the Management Company, office supplies, copies, faxes and telephone expense. A portion also goes toward paying for legal advice, when needed; licenses and permits (i.e. pool permits, outside utility companies, etc.), and end of year audits. General Liability Insurance would also be a part of an assessment. A part of the assessment should also be set aside in a reserve account for future repair and replacement in the common areas so that the Board of Directors does not have to ask for special assessments on a frequent basis.
In short, the assessment that every homeowner pays goes to one thing for the property and that is to protect, preserve and enhance the property values of each and every homeowner in the association.