It’s a tale as old as time (at least as long as HOAs have been around): year by year, the dues gradually increase until what you were originally paying has doubled or tripled. Some people are dismayed at this, while others understand it’s just the nature of inflation and the guaranteed rising cost of living.
But if dues increase by too much within one year, it can be cause for concern to many homeowners, and rightfully so. Homeowners living within an HOA come to expect that they will see the effects and payoff of their dues. Additionally, that rate increase can be a financial burden when already keeping up on the mortgage and other payments.
The question then arises, how much is too much when an HOA raises dues?
The answer is not as clear cut as you may want it to be. With some exceptions, Florida does not limit how high an HOA can raise yearly dues.
No maximum
Technically there is no limit to how much an HOA can raise dues each year in Florida. That said, within each HOA’s CC&Rs there could be specific rules on raising dues. For example, some declarations may state that there can only be a 5% increase each year, however, this is on a case by case basis. You must examine your association’s documents to see if any limitation on dues has been incorporated into your HOA’s rules and regulations.
One reason that you may not find this limitation on dues in your HOA’s CC&Rs is that limiting an increase in dues could be counterproductive. For instance, if your HOA’s due increase is limited to 2% yearly, this could actually inhibit your association from raising dues enough to cover the bare necessities and thus keep your community from being able to pay for much needed repairs.
The 115% rule for condominiums
Though there may be no legal limitations on raising dues, there is a stipulation in Florida law that applies to condo associations. FS 718.112(2)(a) states that if assessments are increased by more than 115%, then a substitute budget can be requested. To do this, 10% of the owners must petition the board within 21 days of the budget’s imposition to request a special meeting.
Additionally, in a condo association, if the developer controls the board then there is an automatic rule that assessments cannot rise by more than 115% of the previous year. unfortunately, there are no such stipulations for HOAs.
Look at the budget
Once protection you do have is an full and transparent budget. HOAs and condo associations must create and adhere to a detailed annual budget. This budget would itemize any and all expenses and the budget must invariably justify the raise in dues.
Basically, if your HOA is planning on raising dues, there must be detailed proof of why this raise is warranted within the budget.
Get involved
If you have serious concerns about the increase in dues, your best bet is to take proactive steps to inform yourself and understand your community’s needs. Get involved with BOD and attend meetings regularly, especially budget meetings.
There are a number of reasons dues might increase each year. Vendor prices might rise, materials and utilities can increase, a reserve study may have discovered that an association’s reserves are depleted. It is important to understand the need for due increases before assuming they are unjustified.
One final note. In rare cases, an overinflated budget and raise in dues can be due to a fiscally irresponsible board. In cases like these, make sure you are asking to see the complete budget and ask for full transparency. You can attempt to remove the problem board members if they are found to at fault, but it’s always best to consult with a community law attorney first.
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I really don’t know how to get correct information from my HOA manager. She seems to control everything and the officers allow it. They don’t post expenses or have regular meetings. I was told some directors are not even told about board meetings.
I am living in this association almost 2 years and have had 2 assessments and 2 maintenance increases.
Common areas was reused with out a vote and proper permits. Audit done but certain information was not provided.
Please advise, thank you
HOA is targeting and harassing some owners.
The declaration and bi-laws have separate amendments that have never been permanently updated in the original documents and they don’t fully give them out when requested.
There are 7 BOD when the declaration and bi-laws only call out 4 officers.
HOA is targeting and harassing some owners.
The declaration and bi-laws have separate amendments that have never been permanently updated in the original documents and they don’t fully give them out when requested.
There are 7 BOD when the declaration and bi-laws only call out 4 officers.
Lastly, they are violation florida and federal law regarding service animals. They are requesting documentation vs asking what tasks the animal performs.
Units can be rented by each owner and so the correct ADA laws need to be followed.
Turnberry towers in aventura has raised my dues to a staggering $2,300 a month and now because of a previous boards mismanagement, they are issuing a special assessment which I heard was $100,000.00… when I brought this up to the board president he laughed and said my unit would be much higher than 100,000… how can people be expected to deal with this??!?
I have been in townhome for 3 years come July. In January our dues went up from 236.00 a month to 270.00. Just had a meeting with board members and they say our dues are going up another 205. A month . This change is just 4 months is that legal. They are calling it a speacial assessment. So we will be paying close to 5 every month. This will be crippling to homeowners. In the 3 years I have been to one meeting . They have not shown us the budget numbers . Something doesn’t seem correct. Need answers. This goes threw will cause people to loose there homes . They also said exspect it to go up after this . But can they do this every few months change the monthly price . ?????
I just leaned of this increase and am seeking answers as well. I am in the community you are in and this deeply concerns me because this will be financially crippling. I will be at the meeting! Seems like they are trying to get homeowners out to sell to a developer!