How Much Can a Vermont HOA Raise Dues?

A jump in HOA dues can land like a surprise tax — and the first question owners ask is whether the board can really do that. In Vermont, the answer runs through the Vermont Common Interest Ownership Act (VCIOA), Title 27A, and the association's own declaration and bylaws. This is general information, not legal advice — for how it applies to your specific situation, a licensed Vermont attorney is the right resource.

Dues come from the budget

Common-expense assessments — what most people call dues — are how the association funds its budget. Under § 3-115, assessments for common expenses are levied based on the budget the association adopts. So a dues increase is really a budget decision, and the budget is where an owner's attention usually belongs.

VCIOA generally doesn't set a flat percentage cap

Vermont's statute does not impose a simple "dues can't rise more than X% a year" cap. Instead, the controls are procedural and structural:

• The increase has to flow from a properly adopted budget.
• The budget is adopted at a meeting that, under § 3-108, is generally open to owners with at least 10 days' notice and an agenda.
• The declaration and bylaws may add their own requirements — for instance, an owner ratification step, or a ceiling on increases without a member vote.

In other words, the real limits often live in your governing documents, layered on top of the statute's process requirements.

Where owners commonly look

When dues rise, owners frequently examine:

• The adopted budget — what is the money actually for? Operating costs, or a reserve shortfall?
• The declaration and bylaws — do they require a member vote or ratification above a certain increase?
• The meeting notice — was the budget adopted at a properly noticed, open meeting under § 3-108?
• The reserve study — large increases are sometimes driven by underfunded reserves, which the records can show.

A records request under § 3-118 can reach the budget, reserve study, and the minutes of the meeting where the increase was approved.

Special assessments

Beyond regular dues, associations sometimes levy a one-time special assessment for a major expense. These, too, generally have to come through the proper budget and meeting process and may trigger heightened requirements in the declaration — so the same questions about notice, authority, and owner approval apply.

When an increase seems improper

If an owner believes dues were raised without the process the statute or governing documents require, the options include requesting the budget and meeting records, raising the issue with the board in writing, and consulting a licensed Vermont attorney about whether § 3-115, § 3-108, or the declaration were followed.

Sources

• 27A V.S.A. § 3-115 — Assessments for common expenses
• 27A V.S.A. § 3-108 — Meetings
• 27A V.S.A. § 3-118 — Association records