Can Your HOA Raise Your Dues?

HOA dues rarely go down, but there are real legal limits on how much and how fast they can rise — and on whether the board can do it alone. Knowing the rules in your state and CC&Rs tells you whether an increase is enforceable.

Who Can Approve an Increase

Most CC&Rs let the board set the annual budget and adjust regular dues to fund it — but many cap how much the board can raise dues in one year without a membership vote. California's Davis-Stirling Act (Civil Code §5605), for example, limits the board to a 20% annual increase in regular assessments without member approval, and caps board-imposed special assessments at 5% of the budgeted gross expenses per year.

Your CC&Rs may set a stricter limit (such as a fixed dollar cap or a percentage tied to inflation). Always read both the statute and your governing documents — the more restrictive one usually controls.

Required Notice Before a Change

Boards usually must give advance written notice before a new assessment takes effect — commonly 30 to 60 days — and must adopt the budget at a properly noticed open meeting. A dues increase pushed through without proper notice or outside an open meeting can be challenged on procedural grounds.

Regular Dues vs. Special Assessments

Do not confuse a regular dues increase with a special assessment. Regular dues fund the normal budget; special assessments are one-time charges for unexpected costs (a roof, a lawsuit, an underfunded reserve). Special assessments often have their own, stricter approval and notice rules, and frequently require a membership vote above a certain dollar threshold.

How to Challenge an Improper Increase

Request the adopted budget and the meeting minutes that approved the increase. Confirm the board stayed within its statutory and CC&R cap, gave proper notice, and acted at an open meeting. If any step is missing, send a written objection citing the specific rule. You can also raise it at the next open meeting and, in many states, demand the records that justify the new amount.

Frequently Asked Questions

Can an HOA raise dues without a vote?

Often yes, up to a limit. Many states and CC&Rs let the board raise regular dues within a cap (for example, California limits board-only increases to 20% per year) but require a member vote above that. Check your state statute and governing documents for the exact threshold.

How much notice must an HOA give before raising dues?

Commonly 30 to 60 days of advance written notice, and the budget must usually be adopted at a properly noticed open meeting. An increase imposed without proper notice can be challenged.

What is the difference between a dues increase and a special assessment?

Regular dues fund the normal annual budget; a special assessment is a one-time charge for unexpected costs. Special assessments usually have stricter approval and notice rules and may require a membership vote above a set amount.

How do I challenge an HOA dues increase?

Request the adopted budget and approving minutes, confirm the board stayed within its legal cap and gave proper notice at an open meeting, and submit a written objection citing the specific rule if any step was missed.