Can an HOA Really Raise Fees Whenever They Want?
A dues increase notice shows up in the mail, larger than expected, with little explanation and seemingly little warning. It’s a common enough experience to wonder whether a homeowners association can really just decide to charge more whenever it wants, or whether there are rules governing that decision somewhere.
At a glance
Homeowners associations generally cannot raise dues arbitrarily; the association’s governing documents, typically the declaration of covenants, conditions, and restrictions along with the bylaws, usually spell out how increases are decided, how much notice owners must receive, and sometimes a cap on how much dues can rise in a given year without a vote of the membership. The specific rules vary significantly from one association to another, since they’re set at the community level rather than by a single nationwide standard, and some state laws add further requirements on top of what the governing documents say. Reading those documents is the only way to know the actual limits that apply to a specific HOA.
Where the actual limits come from
Governing documents are the first place to look, since most HOAs are legally bound by the terms in their own declaration and bylaws, which were recorded when the community was established. Many of these documents include a formula or cap limiting how much the board can raise dues on its own authority within a given year, often expressed as a fixed percentage, above which a vote of the full membership is required. Increases beyond that threshold typically require a special meeting, a mail-in vote, or another formal process laid out in the bylaws, rather than a unilateral board decision.
Beyond the governing documents, a number of states have laws that regulate certain aspects of HOA operations, including notice requirements before a fee increase takes effect. These state-level rules vary considerably, and some states are much more hands-off about HOA governance than others, which is part of why the same complaint can play out very differently depending on where the property is located.
What typically drives a dues increase
- Rising costs for shared services. Landscaping, insurance, utilities for common areas, and maintenance contracts can all increase from year to year, and dues are often adjusted to keep pace.
- Underfunded reserves. Associations are generally expected to maintain a reserve fund for major future repairs, like a roof or a pool resurfacing, and a board may raise dues specifically to rebuild an underfunded reserve.
- A special assessment versus a dues increase. A large, unexpected cost is sometimes handled through a one-time special assessment rather than a permanent dues increase, and the two are governed by different rules within most associations.
- Board discretion within stated limits. Some governing documents give the board authority to raise dues up to a certain percentage each year without a vote, treating anything beyond that threshold as requiring broader owner approval.
What owners can actually do
Requesting a copy of the governing documents, meeting minutes, and the reasoning behind a specific increase is a reasonable first step, since associations are generally required to make certain records available to owners. Attending board meetings, where increases are usually discussed and voted on before taking effect, gives owners visibility into the process rather than only seeing the outcome in a mailed notice. If an increase appears to exceed what the governing documents allow, raising the issue directly with the board, or consulting a local resource that specializes in HOA or common interest community law, is generally the next step, since remedies vary by state and by the specific language in the community’s documents. Dues are only one of several homeowner costs that can shift after a purchase, alongside things like property tax jumping after a sale closes.
What to weigh
Dues increases are often unavoidable over time simply due to rising costs, but the process by which they’re approved, and how much notice owners receive, is meant to be governed by rules rather than left entirely to board discretion. Understanding a specific community’s cap, notice period, and voting requirements is what separates a routine increase from one worth formally questioning, and factoring that uncertainty into a household budget ahead of time softens the impact when an increase does arrive.
The takeaway
An HOA board typically operates within limits set by its own governing documents and, in many cases, state law, even when a dues increase feels sudden or unexplained. Reviewing those documents directly, rather than assuming the board has unlimited authority, is the clearest way to understand what’s actually allowed in a given community.