Can an HOA Legally Raise Fees?

Yes, HOAs have the authority to raise regular monthly or annual assessments (dues) as needed to cover community expenses. However, the process depends on:

• State laws (some states cap increases)

• HOA governing documents (CC&Rs and bylaws)

• Budgetary needs (rising costs, emergencies, etc.)

In most cases, boards can approve small increases without homeowner votes, but large hikes or special assessments may require member approval 610.

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Why Do HOAs Raise Fees?

Common reasons for fee increases include:

1. Inflation & Rising Costs

• Landscaping, pool maintenance, and utilities get more expensive over time.

• Insurance premiums (especially in disaster-prone states like Florida) have surged 12.

2. Underfunded Reserves

• If the HOA hasn’t saved enough for major repairs (like roof replacements), fees may rise to avoid special assessments later 4.

3. New Amenities or Services

• Adding security, EV charging stations, or clubhouse upgrades can increase costs 9.

4. Emergency Repairs

• Storm damage, plumbing failures, or structural issues may force sudden fee hikes 11.

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How Does an HOA Raise Fees?

The process varies but typically follows these steps:

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1. Review the Budget

• The board analyzes expenses and projects future costs.

• If expenses exceed income, a fee increase may be proposed.

2. Check Governing Documents & State Laws

• Some states (like Arizona) cap annual increases (e.g., 20% max without a vote) 6.

• Others (like Florida) allow boards to raise fees freely unless the CC&Rs restrict it 9.

3. Notify Homeowners

• Most HOAs must provide advance notice (often 30-60 days).

• Homeowners can review the budget and voice concerns at meetings 10.

4. Vote (If Required)

• Some HOAs need member approval for increases above a certain threshold.

• If homeowners reject the hike, the board may cut services or find alternative funding 6.

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What Can Homeowners Do About Fee Increases?

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If you’re facing an HOA fee hike, consider these steps:

1. Review the Budget & CC&Rs

• Check if the increase follows the rules.

• Look for unnecessary expenses (e.g., excessive landscaping or management fees).

2. Attend Meetings & Speak Up

• Ask for cost breakdowns and suggest alternatives (e.g., delaying non-essential projects).

3. Request a Payment Plan

• Some HOAs allow staggered payments for large increases 10.

4. Run for the Board

• If fees seem unreasonable, joining the board gives you a say in financial decisions.

5. Legal Action (Last Resort)

• If the HOA violates its own rules or state laws, homeowners may challenge the increase in court 13.

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Can an HOA Raise Fees Without Notice?

Generally, no. Most states and HOA bylaws require:

• Transparency (publishing budgets and meeting minutes).

• Advance notice (typically 30-90 days before increases take effect) 610.

If your HOA raises fees without warning, check your governing documents and state laws—you may have grounds to dispute it.

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Final Thoughts

HOA fee increases are often necessary to maintain communities, but homeowners have rights. By understanding the process, reviewing financial reports, and staying involved, you can ensure fees remain fair and justified.

Need help? Consult your HOA’s financial statements or seek legal advice if you suspect mismanagement 13.