Need o justify an increase to the annual assessment

This is for a subdivision of about 100 lots. I think the word "budget" appears only once in the Az HOA statute, in the disclosure section, requiring that buyers receive a copy of the "current operating budget" of the HOA. On the other hand, working for you is this:

-- the Board has mailed the 2024 budget to owners.

-- the statute requires either the annual financial report, or a summary of the latter to be mailed to owners.

-- the stature requires an annual audit.

-- the statute gives owners the right to inspect all financial records of the HOA.

-- the statute requires that owners be allowed to speak at board meetings. You should raise your questions at these meetings and see if you can get responses. See ARS 33-1804.

-- For the full statute, see https://azre.gov/sites/default/files/hoa/documents/Planned_Communities_Act.pdf. Do keyword searches related to your interests. Send polite just-the-facts letters to the board, requesting to inspect records backing up your claims of fraud.

-- Lastly, if you feel the board is inept, the quickest, least expensive way to fix this is to run for the board yourself, hopefully winning election with a like-minded majority.

Assuming your Board at least does this correctly, you should see in its approved open meeting minutes some motions and perhaps justifications for raising dues so much. do you know the date(s) of such meetings? You did not attend such open meetings, I guess?

You also may request a copy of the 2023 budget that you received in the mail last year and compare the lone item expenses with the '24 budget. This will give you a really clear picture of where the increases occurred. If like mine, expect to see increases in utilities and wages if you have staff. Ours didn't go up much but we'v been haring that many HOAs have had big increases in insurance. If you reserves have been underfunded, the board may have increased the contributions going to reserves each month.

Many HOAs, like mine, post both the minutes and the monthly financials on a protected website.

SAMPLE

11/11/2022

To our fellow XXX HOA home owners from your Board of Directors.

Attached please find a copy of our 2023 Association’s Budget.

Please note that effective 01/01/2023, monthly dues (Annual Assessment) will increase from $80.00 per month ($960.00 per year) to $100.00 per month ($1,200.00) per year. This is not an action the BOD takes lightly. Remember, we ourselves are owners.

There are several reasons for this increase. The rising costs from all our suppliers such as utilities, landscaping, and management company. Also, as our neighborhood ages it becomes more expensive to maintain. As far as aging, I specifically refer to fence and sprinkler repair cost drastic increases. This dues increase will allow us to, as we have each year, maintain a balanced budget while properly fund our Roofing Reserves and General Reserve Funds.

Even with the turmoil in the real estate market, our neighborhood remains in great demand. Homes are selling fast and for all time high prices. For the greater good of us all, we must maintain this growth and this increase allows us to maintain the quality and desirability of our neighborhood.

Cordially yours,

XXXX HOA
Board of Directors

You should be entitled to copies all contracts with vendors and invoices to verify increases.