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What is Working Capital?

Capital Contributions or working capital are a one-time assessment that is collected at closing

The association bylaws dictate what amounts will be collected when a home is sold, and ongoing (association assessments). Working capital contributions are generally used to replenish the association’s reserves and may be used for improvements within the association. 

These amounts vary by association and are most commonly collected from the first buyer of a new home in a developing community. 

Ask your Closing attorney if you have questions about any charges on your HUD statement, including working capital or other fees.