Condo Association Management Blog

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

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.

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. 
 

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.

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.

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.

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