Yes, an HOA can increase fees, and in most communities the board can do so without a vote from every homeowner. The authority comes from the governing documents you agreed to at closing, backed by state law. What keeps the power in check are caps on how much the board can raise regular dues on its own, notice requirements before a new amount takes effect, and a membership vote whenever an increase exceeds the cap. Knowing where those limits sit is what separates being blindsided by a hike from being ready for one.
Where the Board Gets Its Authority
Three layers of authority stack on top of each other. The foundation is the Declaration of Covenants, Conditions, and Restrictions, usually called the CC&Rs. This document functions as the community’s constitution. It spells out what the association can charge for, how assessments are allocated among units, and what limits apply to increases.
The second layer is the association’s bylaws, which cover the operational side: how the board adopts an annual budget, when meetings happen, and what voting thresholds apply to financial decisions. The third layer is state law, which varies widely. Some states impose hard caps on assessment increases. Others leave the limits entirely to the governing documents. A handful require the board to adopt a budget annually and present it to homeowners for ratification, with the budget standing unless a majority of owners vote to reject it.
The board also owes a fiduciary duty to the community. That obligation means increases have to be grounded in actual budget needs rather than board preference.
Limits on Regular Fee Increases
The most common safeguard is a percentage cap on how much the board can raise regular assessments in a single year without putting the increase to a membership vote. The specific threshold varies. Some CC&Rs cap annual increases at a modest number like 5 or 10 percent. Some states set their own statutory limits, often in the range of 15 to 20 percent above the prior year’s assessment. Older CC&Rs sometimes contain fixed-dollar caps that haven’t kept pace with inflation, which can create real budget problems for the association.
When a proposed increase exceeds whatever cap applies, the board must get homeowner approval before the higher amount takes effect. The required approval threshold also varies: some governing documents require a simple majority of a quorum, while others demand a majority of all owners in the community. Modest, budget-driven increases happen at the board level. Anything that would substantially change what you pay each month usually requires broader buy-in.
If your CC&Rs are silent on a specific cap, state law may fill the gap. And if neither source imposes a limit, the board’s fiduciary duty and the requirement to base assessments on an adopted budget still act as constraints. A board that doubles fees without a corresponding budget justification is inviting a legal challenge even if no percentage cap technically applies.
Notice and the Budget Process
Fee increases flow from the annual budgeting process. The board drafts a budget based on projected expenses for the coming year, and that budget determines the assessment each owner pays. In many states, the board must distribute a budget summary to all homeowners and hold an open meeting where owners can review the numbers and ask questions before the budget is finalized.
Notice is the most concrete procedural safeguard. State laws commonly require written notice of any assessment increase sent to each homeowner within a window of 30 to 60 days before the new amount becomes due. The notice should specify the new amount, the effective date, and the reason for the increase. If your association skips this step or buries the increase in fine print, that is a procedural defect you can challenge.
When an increase exceeds the governing cap and triggers a membership vote, additional rules apply. The association must follow its bylaws for calling a special or annual meeting, providing proper notice, establishing a quorum, and counting ballots. Proxy voting may be allowed depending on your state and governing documents. Failure to follow these procedures can invalidate the vote, even if the underlying increase was financially justified.
Special Assessments Are a Separate Track
A special assessment is a one-time charge to cover a specific expense that wasn’t anticipated in the annual budget. Replacing a community roof, repaving roads, or repairing damage from a major storm are typical triggers. Special assessments can run into the thousands of dollars and arrive with relatively little warning.
The approval rules for special assessments are usually separate from those for regular fee increases, and they tend to be stricter. Governing documents commonly allow the board to levy small special assessments on its own authority, up to a set dollar amount or a percentage of the annual budget. Anything above that threshold requires a membership vote. The exact cutoff depends on your CC&Rs and state law.
Many associations offer payment plans for large special assessments, splitting the total into monthly or quarterly installments over one to several years. This isn’t always required by law, so check your governing documents. Some CC&Rs limit how long the association can stretch payments, and if a payment plan is offered, expect to pay interest on the unpaid balance.
Insurance-Driven Special Assessments
One increasingly common trigger deserves its own mention. When the association’s master insurance policy covers a community-wide loss, the policy’s deductible gets divided among unit owners. Master policy deductibles on large communities can run into six figures, meaning your share might be several thousand dollars even for a covered claim. Standard homeowners and condo policies typically include only $1,000 in loss assessment coverage, which is rarely enough. You can usually purchase additional loss assessment coverage through an endorsement on your HO-6 or homeowners policy, often up to $50,000 or $100,000 in coverage for a relatively small premium increase.
Why Fees Keep Climbing
If your assessments have climbed noticeably, several forces are pushing them higher across the country, and most are outside your board’s control.
Insurance premiums are the biggest driver. Community association insurance costs have spiked since 2021, fueled by a shrinking number of carriers willing to insure HOAs, particularly in areas prone to hurricanes, wildfires, or flooding. Older buildings with deferred maintenance face even steeper increases. Because insurance is one of the largest line items in most association budgets, premium hikes translate directly into higher assessments.
Reserve funding is the other major factor. A reserve fund covers the eventual replacement of expensive shared components like roofs, elevators, parking structures, and mechanical systems. Historically, many associations underfunded reserves or waived reserve contributions to keep dues artificially low. Several states have tightened reserve funding requirements in recent years, and the industry standard calls for updating a reserve study every three to five years. When a new study reveals a shortfall, the board has to make up the difference through higher regular assessments, a special assessment, or both.
General inflation matters too. Landscaping contracts, pool maintenance, management company fees, and utility costs all rise with the broader economy. A board that doesn’t increase assessments in line with inflation will eventually face a much larger correction.
Your Right to Review the Books
Before challenging a fee increase, you need to understand what’s driving it. Every homeowner has the right to inspect the association’s financial records. The specific documents vary by state, but at a minimum you should be able to review the current annual budget, the balance sheet, and the income and expense statements. Most states also grant access to vendor contracts, insurance policies, meeting minutes, and reserve study reports.
Reviewing the budget is the single most useful step you can take when fees go up. Look at which line items changed and by how much. An increase driven by a documented jump in insurance premiums or a reserve study showing a funding shortfall is a very different situation from one where the board padded discretionary spending. If the board refuses or delays your records request, most state laws impose penalties for noncompliance, and the refusal itself can become evidence of bad faith in any later dispute.
How to Challenge an Improper Increase
Not every fee increase you dislike is improper, but genuinely defective increases do happen. The most common problems are procedural: the board didn’t provide adequate notice, skipped the required membership vote for an increase above the cap, or failed to adopt a proper budget before setting the new assessment amount. Substantive challenges are harder to win but not impossible. If the increase funds something the CC&Rs don’t authorize, or if the board is spending reserve funds on operating expenses, those are legitimate grounds.
Start by reading the CC&Rs, bylaws, and your state’s HOA statute. You are looking for the specific rule the board allegedly violated. A vague sense that the increase is “too high” isn’t enough. You need to point to a provision that was breached.
Attend a board meeting and ask specific questions about the budget. Board meetings are open to homeowners, and the board is required to allow reasonable comment on agenda items. Get the board’s reasoning on the record. Follow up with a written letter sent by certified mail, citing the exact governing document provision or state law you believe was violated and requesting that the board rescind or correct the increase.
If direct engagement doesn’t work, check whether your association has an internal dispute resolution process or grievance committee. Many states require associations to offer some form of alternative dispute resolution before either side can go to court. Mediation with a neutral third party resolves a surprising number of these disputes at relatively low cost. Litigation is the last resort. When the board’s action is a clear violation of the governing documents or state law, an attorney experienced in community association law can advise whether the case justifies the cost.
Don’t Withhold Payment While You Fight
Ignoring an assessment you disagree with is one of the most expensive mistakes an HOA member can make. The consequences escalate quickly and can ultimately cost you your home.
The first consequence is financial. Most associations charge late fees and interest on overdue assessments, with rates set in the governing documents and sometimes capped by state law. Attorney’s fees and collection costs typically get added to the balance. A $500 delinquency can snowball into several thousand dollars once penalties and legal fees accumulate.
The second consequence is a lien on your property. In most states, an HOA lien attaches automatically when assessments go unpaid. The association may record the lien with the county recorder’s office, though recording isn’t always required for the lien to exist. This lien must be satisfied before you can sell or refinance. In roughly 20 states, the HOA lien carries “super lien” status, meaning a portion of the unpaid assessments actually takes priority over your first mortgage. The super lien amount varies by state but typically covers six months of assessments.
Foreclosure is the final step. Most governing documents authorize the association to foreclose on a property for unpaid assessments, either through the courts or through a non-judicial process depending on state law. Some states require the delinquency to reach a minimum dollar amount or age before foreclosure can proceed. A few states grant a right of redemption that lets you buy back the home by paying everything owed within a limited window after the sale. If you are struggling to pay, contact the board or management company early. Most associations would rather work out a payment plan than foreclose.
Unpaid assessments can also end up on your credit report. A debt sent to a collection agency or reduced to a court judgment is likely to appear, and delinquent debts can remain on your report for up to seven years.