translation needed (Virginia HOA)

I'm having trouble grasping the legal language in a part of our covenants. If someone could tell me what it's saying, I'd appreciate it. This is regarding increasing the annual assessment. See text below. I've included more, for the sake of context, but it's really (b) that I'm having difficulty with. I've put *** around the part that I just can't understand.

Thanks for any help.

Section 3. Basis and Maximum of Annual Assessments. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment shall be THREE HUNDRED AND NO/100 DOLLARS ($300.00) per Lot for Lots other than those owned by the declarant, payable in equal monthly installments. The Declarant shall pay FIVE DOLLARS ($5.00) per year assessment on each recorded Lot until such time as a dwelling has been completed on a Lot, at which time the Declarant shall pay regular monthly assessments until the Lot is conveyed.

(a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased effective January 1 of each year without a vote of the membership in conformance with the rise, if any, of the Consumer Price Index (published by the Department of Labor, Washington, D.C.) for the year ending the preceding July 1.

(b) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased above that established by the Consumer Price Index formula by a vote of the members ***for the next succeeding five years and at the end of each such period of three years, for each succeeding period of three years, *** provided that any such change shall have the assent of two-thirds (2/3) of the votes of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting setting forth the purpose of the meeting. The limitations hereof shall not apply to any change in the maximum and basis of the assessments undertaken as an incident to a merger or consolidation in which the Association is authorized to participate under its Articles of Incorporation.

(c) After consideration of current maintenance costs and future needs of the Association, the Board of Directors may fix the annual assessment at an amount not in excess of the maximum.

So, as you read it, even if we get a 2/3 vote to increase the annual assessment more than CPI, we have to continue doing it again and again at the 5-year mark and 3-year marks forever after that?

Does any HOA out there get a 2/3 vote on ANYTHING? We think we are doing well to get anything significantly over 10%. I'm asking seriously. According to our reserve study, we need to raise our dues well over the CPI. Our management company says it's impossible to get a 2/3 vote, ever. I don't know about that--as far as I know, we've never tried--but it does seem very difficult.

Thanks for your answer. Our community was finished in 1980. We have never raised the annual assessment over the CPI before, in all those years. Frankly, even 5% would be better than the CPI. Our costs have outstripped the allowable raises--trash collection, landscaping, other services go up dramatically, the assessment doesn't.

I think we are capable of busting our butts to get a 2/3 vote to make a necessary change, but I don't foresee boards doing this every 3 years forever to keep whatever change we need to make. Would we be better advised to use this Herculean effort to change the CPI rule in our governing documents, do you think?

We need about a 3% increase each year, according to our reserve study. Last year the CPI increase was 1.9%.

Suggested wording (this allows BOD to raise 5% and changes the 2/3 requirement from 2/3 of the membership to 2/3 of the votes cast):

The maximum annual assessment may be increased by the Board of Directors up to 5 percent per year without membership approval. Any additional assessment shall have the assent of two-thirds (2/3) of the votes of all members who are voting in person or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting setting forth the purpose of the meeting.

Suggested wording (If you need to appeal to members who want to limit the ability of a few making a decision for the majority - yet allows for membership apathy):

Quorum for increasing annual assessments beyond 5%: At the meeting called to increase assessments in excess of 5 percent, the presence at the meeting of members or of proxies entitled to cast sixty (60) percent of all the votes shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth in Sections 3 and 4, and the required quorum at any such subsequent meeting shall be one half (1/2) of the required quorum at preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.