SusanB42 (Texas)
Posts: 21
Posts: 21
Posted:
What is the percentage of the increase in the amount of the assessment/dues allowed? Our dues were $150 for 22 years and now every year since 2020, the 2025 dues have increased to $375.
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Assessments/ Dues increase
Started by SusanB42 • 11 replies • 230 views
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
The allowed amount would typically be in your governing documents.
Keep in mind that the amount of assessments is based on the budget.
Expenses have increased. Therefore, if done properly (income = expenses), assessments would need to increase as well.
A couple of major expenses for Associations are:
Insurance - there have been reports of insurance costs doubling for some Associations.
Reserves - (money set aside for expected maintenance, repairs and replacement of Association elements - roads, signage, playgrounds, pool, clubhouse, etc.) should be properly funded. As inflation goes up, the amount needed to properly fund the reserves will go up.
What TX statutes would govern you Association?
Keep in mind that the amount of assessments is based on the budget.
Expenses have increased. Therefore, if done properly (income = expenses), assessments would need to increase as well.
A couple of major expenses for Associations are:
Insurance - there have been reports of insurance costs doubling for some Associations.
Reserves - (money set aside for expected maintenance, repairs and replacement of Association elements - roads, signage, playgrounds, pool, clubhouse, etc.) should be properly funded. As inflation goes up, the amount needed to properly fund the reserves will go up.
What TX statutes would govern you Association?
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Most HOA declarations do not contain an annual limit on fee increases. A reason you may be experiencing the increases you have recently is precious boards failure to establish reserves.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
With Tim, yes, probably your CC&Rs have a limit on how much regular annual assessments may be raised each year. There also might be a limit on how much a "special assessment" can be levied in a year.
In my Cali CC&Rs, a regular assessed,may on be increased a certain max % each year, which also is limited by state statute. (usually the increase is a % not a dollar amount)
Are you on the Board?
In my Cali CC&Rs, a regular assessed,may on be increased a certain max % each year, which also is limited by state statute. (usually the increase is a % not a dollar amount)
Are you on the Board?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Hmmm--not sure about Dean's assertion. I think many states have limits, which usually could be in an HOA's Gov. Doc, probably the Cc&Rs.
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
When you read the documents to see if there are rules regarding how much assessments can increase, keep looking to see what the association is responsible for maintaining (e.g. clubhouse). Then remember what Dean said about reserves.
A lot has happened in 22 years and you didn't expect common areas to remain pristine, did you? Materials and labor has gone up, along with insurance, as Tim mentioned, but uour association assessments haven't kept up. Now the board and community have to play catch up.
A lot has happened in 22 years and you didn't expect common areas to remain pristine, did you? Materials and labor has gone up, along with insurance, as Tim mentioned, but uour association assessments haven't kept up. Now the board and community have to play catch up.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
ElleN (Idaho)
Posts: 1,334
Posts: 1,334
Posted:
Quote:
Posted By SusanB42 on 01/24/2025 2:02 PM
Our dues were $150 for 22 years
Our dues were $150 for 22 years
Is this a Texas condominium? If so, what year was the declaration recorded?
State law may have more to say, but I need to know if this is a condo association first.
SusanO3 (California)
Posts: 163
Posts: 163
Posted:
If your dues were $150pm for 22 years then that's why. Previous Board's did not do their job!
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By SusanO3 on 01/25/2025 4:46 PM
If your dues were $150pm for 22 years then that's why. Previous Board's did not do their job!
If your dues were $150pm for 22 years then that's why. Previous Board's did not do their job!
I agree.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Quote:
Posted By KerryL1 on 01/24/2025 3:11 PM
Hmmm--not sure about Dean's assertion. I think many states have limits, which usually could be in an HOA's Gov. Doc, probably the Cc&Rs.
Hmmm--not sure about Dean's assertion. I think many states have limits, which usually could be in an HOA's Gov. Doc, probably the Cc&Rs.
Which many states have a limit on fee increases?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Good question, Dean .Look it up. Perhaps I should have said "Some states limit......."
MarshallT (New York)
Posts: 414
Posts: 414
Posted:
Unfortunately, that depends on your governing documents and any applicable state laws.
Some HOAs say assessments can be increased by a certain % ever year, but if that increase is above the limit, then a vote is required. However this may not be the case for your association.
While the increase is not great, it's better to pay a bit more in regular dues then to be hit with a large special assessment.
Some HOAs say assessments can be increased by a certain % ever year, but if that increase is above the limit, then a vote is required. However this may not be the case for your association.
While the increase is not great, it's better to pay a bit more in regular dues then to be hit with a large special assessment.
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