HOA topic guide
How much can my HOA raise dues or assessments each year?
Regular assessment increases are among the most contentious decisions a board makes, and the governing documents almost always constrain the board's discretion — though not as tightly as many homeowners assume. The Declaration typically sets a maximum annual regular assessment (expressed as a dollar amount per unit per year, sometimes indexed to the Consumer Price Index) and authorizes the board to set any amount up to that cap without member approval. To exceed the cap, the board must obtain member approval, usually by majority vote at a noticed meeting. Many documents also cap the percentage by which the board may increase assessments year-over-year without a vote — commonly 5%, 10%, 15%, or 20% above the prior year's amount, with 20% being most common in modern California condominium documents. Understanding both the hard ceiling (the absolute maximum) and the annual increase limit (the year-over-year cap) in your specific CC&Rs is the starting point for evaluating whether a proposed increase is within the board's authority. State law adds another layer: California Civil Code §5605 caps annual regular assessment increases at 20% over the prior year and special assessments at 5% of the budget without a member vote, regardless of what the CC&Rs say. Florida (FS 720.303) and Arizona (ARS 33-1803) impose similar but different statutory limits. The most common reasons for an increase that homeowners should evaluate are: rising insurance premiums (often the single largest line item, up 30-100% in coastal communities since 2022), reserve study recommendations identifying capital shortfalls, deferred maintenance catching up, increased landscaping and water costs, management fee increases, and new state statutory compliance costs. A budget that does not explain the year-over-year change line by line is a red flag. Owners who believe an increase exceeds the board's authority can challenge it by demanding a hearing, filing a petition for member vote, or in extreme cases seeking declaratory judgment.
What most CC&Rs say
Most governing documents allow the board to increase regular assessments by up to 5-20% annually without a member vote, with 20% being the most common ceiling in modern documents. Increases above that threshold require approval at a member meeting, typically by a majority of members voting. Some older documents set a fixed maximum assessment in dollar terms — a figure that may be badly outdated after years of inflation and often requires an amendment to change, locking the association into chronic underfunding. The budget adoption process — typically requiring the board to approve a budget 30-60 days before the start of the fiscal year and deliver a summary to all members no less than 30 days before the increase takes effect — is the primary vehicle for annual increases. Emergency assessments for sudden cost increases (uninsured casualty losses, regulatory compliance) may be assessed separately from the regular budget under most documents and are not subject to the regular cap. Boards that adopt budgets without delivering required notices may face challenges to the resulting assessment. California requires a written 'pro forma operating budget' distributed to all members; Florida requires line-item disclosure for each fund.
Every HOA's governing documents differ. The patterns above reflect common drafting conventions — your CC&Rs may be more or less restrictive.
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