The dues paid are used to operate the association’s business. For example, there are utilities that operate irrigation and lighting in the community. The “common areas” owned by the association must be maintained, so contractors are hired to maintain the landscaping and other amenities. The association carries general liability, property and Director’s/Officer’s liability insurance to protect the association’s assets and Board of Directors. In addition, the association pays a management company to collect dues, pay expenses, maintain the financial records, communicate with owners, supervise contractors and so on. There are taxes the association is responsible for, and the association should always plan to set aside funds for future repair or replacement of the associations capital assets.