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BonneyP (Florida)
Posts: 2
Posted:
Hello --

Is there a Florida Statute limiting the percentage of a fee increase for HOA dues (for townhomes, not condominiums)?

Thank you!

BP
MelissaP1 (Alabama)
Posts: 13,836
Posted:
That would be in your own HOA documents on what percentages are. Each HOA is different. Typically a HOA board can raise dues 3 to 5% without a membership vote. After that then it's a vote of the membership. It would be like a special assessment but with dues increase.

It should be noted one doesn't just raise dues without a purpose. The HOA is a non-profit in most cases. The dues should raise if it's not able to meet it's bills. Which would include reserves funding. Otherwise it's not doing your HOA any favors.

Former HOA President
CathyA3 (Ohio)
Posts: 6,299
Posted:
I'm not seeing anything for HOAs beyond any limitations that may exist in the community's CC&Rs. Condos may be different.

https://www.daniafernandez.com/2021/03/30/how-much-can-an-hoa-raise-dues-each-year-in-florida/

Editorial:

As Melissa noted, an HOA's expenses are what they are, and in recent years they've been rising dramatically. Typical causes:

* Inflation (particularly in the building industry due to demand and supply chain issues, which affect repair costs for existing communities)
* Insurance (we've heard reports of premiums doubling year over year or insurers leaving particular markets altogether)
* Inadequate reserves (previous underfunding and increasing damage to do extreme weather) resulting in the need for loans or special assessments

These laws that limit a board's ability to raise assessments to the necessary level are an example of "consumer protection" laws that actually cause the consumer harm in the long run. I've referred to them as "licenses to commit financial suicide". When an HOA's assessments are unrealistically low, then essential maintenance will be neglected. This results in components wearing out faster than they should and actually increases expenses over time.

Associations that kick the can down the road each year eventually run out of road (as we saw when the condo in Surfside collapsed two years ago). Yes, those were condos, but the principle is the same. Things cost what they cost, and vendors don't care about the labels you've put on your community. Poorly maintained communities don't do anybody any favors - and in fact make them vulnerable to takeover by professional investors who buy up distressed properties so that they can turn them into rentals. People who refuse to maintain their homes to the necessary standard may find themselves not owning their homes at all.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By BonneyP on 09/22/2023 4:21 AM
Is there a Florida Statute limiting the percentage of a fee increase for HOA dues (for townhomes, not condominiums)?
Assuming this Florida HOA is subject to FS 720, I see nothing in FS 720 that directly limits how much the board can increase the regular assessment. Indirectly the owners have some say about budgeting for reserves. See 720.303(6), for one.
LoriM15 (Florida)
Posts: 1,009
Posted:
Quote:
Posted By BonneyP on 09/22/2023 4:21 AM
Hello --

Is there a Florida Statute limiting the percentage of a fee increase for HOA dues (for townhomes, not condominiums)?

Thank you!

BP

No. Any restriction on the amount of an increase would be in your declaration. Florida state law (FS 720) can't help with this one. If it's not a special assessment, the HOA does not even need to send out a copy of the proposed budget before it is voted on by the board.

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