How Much Can My HOA Raise Dues?

Assessment increases are a perennial source of friction, and how much an HOA can raise dues depends on two things: your governing documents and your state's law. For your specific situation, a licensed attorney in your state is the right resource. This is general information about how those interact, not legal advice.

Can my HOA raise dues without a member vote?

In some states, only up to a limit. In California, Civil Code §5605 bars the board from raising the regular assessment more than 20 percent over the preceding fiscal year, or imposing special assessments above 5 percent of budgeted gross expenses in aggregate, without approval of a majority of a quorum of members. Emergencies are excepted under §5610.

A number of states limit how far a board can raise regular assessments on its own. California's Davis-Stirling Act is one. Under Civil Code §5605:

"the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the association's preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members …" — §5605(b), Cal. Civ. Code

California also carves out emergencies: under Civil Code §5610, "Section 5605 does not limit assessment increases necessary for emergency situations," defined as an extraordinary expense "required by an order of a court," one needed after a "threat to personal health or safety or another hazardous condition or circumstance on the property" is discovered, or a repair that "could not have been reasonably foreseen by the board in preparing and distributing the annual budget report" — and for that last category the board must first adopt a resolution with written findings that "shall be distributed to the members with the notice of assessment."

What limits HOA dues increases if my state has no cap?

Mainly the governing documents. Many states set no statutory percentage cap like California's Civil Code §5605. There, the limits come from the declaration and bylaws, which may set their own ceilings, notice requirements, or member-approval thresholds for increases. In those communities, the documents, plus the board's duty to budget in good faith, are the main guardrails.

Process protections usually apply either way

Even where a board can raise dues, it generally must follow process: adopting a budget, giving members notice, and acting at a properly noticed meeting. Skipping required notice or approval steps can make an increase vulnerable regardless of the amount.

The bigger picture

So "how much can my HOA raise dues?" depends on whether your state caps increases (like California's §5605) or leaves it to your documents, and on whether the board followed the required budget-and-notice process. Those are fact-specific questions, and a licensed attorney in your state — or a close read of your declaration — is the appropriate resource.

Frequently asked questions

Is there a legal limit on how much my HOA can raise dues?

In some states, yes. California's §5605, for instance, generally bars regular-assessment increases over 20% (or special assessments over a 5% aggregate) without member approval. Many other states have no statutory cap and rely on the governing documents.

Can the board raise dues without telling members?

Generally no. Boards typically must adopt a budget and provide notice, and act at a properly noticed meeting. The exact requirements come from your state's statute and your documents.

What can I do about an increase I think is improper?

The options depend on whether a cap applies, what the documents require, and whether the process was followed. A licensed attorney in your state is the appropriate resource for a specific situation.

Sources

• California Civil Code §5605 — Increase in assessments; member approval
• California Civil Code §5610 — Emergency assessment increases