RonaldS
Posts: 1
Posts: 1
Posted:
Can the HOA dues be based upon the Consumer Price Index or is that illegal. One of our members wants our dues to not be based upon what we need but on the CPI each year. We can't even figure out what it would be.
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
KarenT (Washington)
Posts: 249
Posts: 249
Posted:
What reason does this member give for wanting dues to be calculated on the CPI?? Which CPI would you use (there are many!!) and would the precentage increase of the CPI even cover "actual expenses". In my opinion, a well thought out budget based upon actual expenses would be a far better way to calculate dues than the CPI!
DonnaS
Posts: 5,596
Posts: 5,596
Posted:
Ronald,
The actual operating expenses with estimates for Reserve funds is the right way to figure out your dues. I sure as heck will bet that your membership does not enjoy paying estimates according to CPI estimates. When it comes to tax time, if you are operating as a "Not Fr Profit Corp", and there are funds not spent, there could be tax ramifications.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here