Your HOA Dues Are Going Up: 10 Questions Homeowners Should Ask Before Blaming the Board—or Writing the Check

Homeowners association assessments are increasing in many communities due to higher insurance premiums, rising maintenance costs, aging infrastructure, reserve funding needs, and years of deferred repairs.

For homeowners, particularly those living on fixed incomes, even a modest increase can create a serious financial burden. At the same time, an increase is not necessarily evidence that the board has acted improperly. In some cases, increasing assessments may be required to properly operate, maintain, insure, and fund the association.

The important issue is whether the increase is supported by the association’s actual financial condition and obligations.

Before concluding that the board has mismanaged the association—or simply paying the increase without further inquiry—homeowners should ask the following questions.

1. What Is Causing the Increase?

The board should be able to identify the specific expenses requiring additional revenue.

Common reasons include:

• Insurance premiums;
• Reserve contributions;
• Major repairs;
• Utilities;
• Management and staffing costs;
• Legal expenses;
• Increased deductibles; and
• Delinquent assessments.

A general statement that “costs have increased” is not a complete explanation. Homeowners should be provided with a meaningful breakdown.

2. Is the Increase Temporary or Continuing?

Homeowners should determine whether the increase is: