HOA FEES

I can't say for New Jersey, but many states do not have laws governing how much fees can go up, or when/whether/how much special assessments can be.

On the other hand, this is often addressed in the governing documents of your association. Take a look at your bylaws/CCRs/Deed Restrictions/Whatever other docs and see if they address it. Sometimes the docs place a % cap on increases without a vote of the membership.

Is that NJ law or just a general guideline?

I've never like fee increased being based on the CPI - our documents say the maximum increase the Board can impose is 5% - anything higher must come to a homeowner vote, which I think is fair.

Ultimately, the fee increase should be based on the anticipated cost of running the place and everything goes up. Hopefully you've asked for a copy of the budget and asked questions about upcoming projects, reserve funding (your fee increase may be necessary to help fund them properly), impact of delinquencies, etc.

Our docs say the BOD can increase the dues per year as much as they care to but must present owners with such and a budget showing the expenditures before 12/01 for it to go into effect on 01/01. The budget and the assessment shall become effective unless disapproved at a meeting by a majority of the Total Association Vote (67 out of 113). If disapproved, then the budget for the current year will continue in effect for the succeeding year but shall be increased by the US Consumer Price Index (CPI-U). Some say this says there is only a 30 day window to disapprove such and would require calling a Special Meeting. 10% (14) can call for a Special Meeting but they would still need a majority (67 of 113) to disapprove so basically what the BOD wants (if not outrageous) would fly. As outgoing Treasurer, I recommended a 16% dues increase to the incoming BOD.

Ours docs also say any special assessment may be levied by the BOD if approved at a meeting by 2/3rds of the Total Association Vote (85 of 113). Also say the BOD may determine how to pay for such and the payment terms could extent beyond the Fiscal Year if such was implemented.

I one was an owner in an HOA in MA that did a Special Assessment of $25K (yes, $25,000.00) per unit ($4.3 Million). They needed 2/3rds of all owners (116 of 175) to approve and 85% (149 of 175) approved. They arranged a loan with a local bank local that offered owners repayment plans that extended out 5 years. The market value of each unit was about $450K.

Thanks for all the info. According to current by-laws no record on increases noted. that's why I am checking with N.J. law.

ThomasM17