Working Capital is a one-time fee that is collected by the buyer at closing upon the purchase of a home. The amount of working capital will vary per Association.
The HOA Declaration will have a section specific to the working capital requirements for their HOA (within the section covering ASSESSMENTS), and it will typically state if the buyer is to pay 2x the monthly assessment amount, 3x the monthly assessment amount, etc.
The Declaration will also state if the working capital is or is not refundable to the homeowner when they sell the home, or if it is transferable between the buyer and seller.
The amount to be collected for working capital will be provided on the status letter that we issue to the title company.
The working capital payment is NOT applied to the homeowners assessments, and is used by the Association for reserve expenses and capital improvements.
Some HOAs do not require working capital, you will need to check the HOA Declarations for specific information.