I have an HOA that recently entered into a contract with a local internet provider. The HOA is charged a set fee per house each month regardless if the home has chosen to go with this internet provider. The homes that participate pay their internet fees to the HOA, on a pro-rated basis. For example, there are 150 homes in the HOA and the internet provider is charging them $40/home/month, for a total of $6,000. Only 125 homes have chosen to receive internet from this provider, so each of the 125 homes pays the HOA $48/month; total received is $6,000. This is a wash for the HOA, but is this income considered exempt function since not all homes are obligated to participate.