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Is there a limit to an increase in condo association dues or fees?

Posted on Wed, Feb 03, 2010 @ 06:26 AM
  
  
  
Is there a limit to an annual increase in condo association or HOA dues? Our's has been raised from $194 dollars a month to $295 dollars a month in one year. Is this reasonable?

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In Massachusetts, here is typically no cap on condominium fee increases but check your state laws and condominium doucments to determine if there is any cap in your state. I guess you would have to examine what the increases were for in order to determine whether it was reasonable increase or not. 
 
 
 
Stephen Marcus 
 
Marcus Errico 
 
Braintree Massachusetts

posted @ Wednesday, February 03, 2010 7:36 AM by Stephen Marcus


I believe in Illinois (or perhaps in our own by-laws) an increase of 15% is allowed without a majority vote of owners. A larger increase needs to be voted on or at the minimum be discussed in meeting. Is your increase unreasonable? Without any information provided we cannot make that decision. Is your HOA new or old? What do reserves look like? Have you had or plan in the near future to have any large expenditures? I have a friend who was the first to buy into his building that was under control of the developer.

posted @ Wednesday, February 03, 2010 8:16 AM by Mark


To mirror what Mark said...our by-laws limit HOA fee increases to 15%. Anything over that requires a vote by the community. (We're also in Illinois.) 
 
Check your by-laws, I would venture a bet it is stated inside that document. 
 

posted @ Wednesday, February 03, 2010 8:30 AM by Josh


To continue my last thought... 
 
The year after the devloper handed over reins to the association to the building owners, they had to raise their rates over 100% to cover costs. So this type of increase is not new to me if this was the same situation. However, if your association has been established for a number of years then there must be other circumstances we are not being told by the op.

posted @ Wednesday, February 03, 2010 9:33 AM by Mark


You may check your Condo Docs (By-laws) or your State Status for the cap on assessments increase, in Florida is allow up to 115% of increase from previous year, any way you may have a budget meeting to discuss this increase.

posted @ Wednesday, February 03, 2010 2:54 PM by Jose E. Humaran


The question of whether the increase is reasonable is sadly not the right question. The increase being "reasonable" is simply a reflection of the author's dismay over being subjected to the increase. The real question is whether the increase is enough to operate the community and place sufficient funds into reserve for future capital maintenance improvements. It is very expensive to operate and maintain a community assocation. Most owners do not understand the finances of their community or what their financial exposure is in living communially with other property owners. The issue is not whether an owner can afford the monthly assessments dues needed. It is more a matter of: What is needed and only those people that can afford it can live in that community.

posted @ Friday, February 05, 2010 5:42 AM by Aln Seilhammer, SVP, Mutual of Omaha Bank


Most generally no there is not a limit on increases. Like other posters to this question, I have seen some huge increases when the developer turned over the property or a new board came on that actually started doing things correctly. 
 
Darron 
 
HOA Receivables 
 

posted @ Monday, February 08, 2010 12:26 PM by Darron


Our townhouse assocation gave us a special assement for 2500.00 to replace our roofs. Now they want to raise our monthly assessments $10.00. Plus they plan on taking out an additional loan from the bank for our roofs. I don't understand why they don't have money in the reserves for our roofs. But none the less they do both raise assements and special assessment fees in the same year?

posted @ Monday, October 04, 2010 8:01 PM by georgia


I am in Maryland and our Condo fee went up by 10% and in apartment type unit. At this amount the charge is more then the mortgage. The Owner(s) did not vote on this. They (meaning the BOARD) have brought and rented out the majority of the units within this development which is causing the owners to pay more. Does that part of the BY-LAWS. Within the past 8 mos they have changed Condo Management or the Management has change their name 3 times

posted @ Wednesday, December 25, 2013 10:09 PM by DCRAW


My home assossiation increase my maintanance from $315 to $393.00. These is a condo where there is no air conditioning on the highway, floor all damaged, old elevator most of the time broken. Is that legal? and whow can I do'nt let that happen?

posted @ Wednesday, March 12, 2014 12:24 AM by Maria A. Lopes


I too am in Illinois but have an inquiry that is directly related to this, however, is not specific to HOA fees, but pet fees. Our association has determined that an annual per pet fee of $350 (non-refundable) is being assessed due to "increased cost for increased use of the elevator due to pet owners" and "a rear entrance light" being added. It is not unusual to have a pet fee, however to increase the pet fee by $250/pet w/o it being a deposit has usually be associated with being a deterrent to pet ownership or pass through of other costs. Any rules in Illinois that protect pet owners from being abused by such unconfirmed increases?

posted @ Monday, June 16, 2014 8:59 PM by JFord


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