Few topics generate as many emails to the board as a dues increase, even a modest one. Part of the reaction is simply that nobody likes paying more, but part of it is that boards often present an increase as a bare number on a notice with no explanation of what changed, which makes it feel arbitrary even when it isn't. Here's how dues increases are typically governed, what approval and notice they require, and how to communicate one in a way that reduces pushback.
This is general information, not legal advice. Dues increase caps, approval thresholds, and notice requirements vary significantly by state and are also frequently addressed directly in a community's bylaws. Confirm the specific rules that apply to your association with its attorney before finalizing a budget that includes a significant increase.
Many states and many sets of bylaws place a percentage cap on how much the board can raise regular dues in a single year without seeking membership approval, often somewhere in the range of 10 to 25 percent over the prior year's budget. Below that threshold, the increase is generally treated as a normal part of the board's annual budgeting authority, see our guide on the annual budget process. Above it, the increase typically requires a vote of the membership at whatever threshold the governing documents specify, often a majority of those voting or a majority of the total membership.
Not every state or every set of bylaws includes a cap at all, in which case the board's authority is governed entirely by whatever the bylaws say about budget approval. Because this varies so much, the first step in any year where a significant increase is being considered should be confirming, in writing, what your specific governing documents and state require, rather than assuming a number that applied to a different community or a prior board.
For increases within the applicable cap, the board typically approves the new budget, including the new dues amount, as part of its normal annual process, the same process covered in our annual budget guide. No separate vote of the membership is usually required, though notice to owners is.
For increases above the cap, or in communities without a cap where the bylaws require membership approval for any increase, the process typically looks more like other membership votes, see HOA voting rules and annual meeting requirements. This usually means formal notice of the proposed increase, an opportunity for owners to vote at a meeting or by proxy or ballot, and a defined approval threshold that must be met for the increase to take effect.
Separate from any approval requirement, most governing documents require the board to provide owners with the proposed budget, including the new dues amount, a minimum number of days before it takes effect, commonly around 30 days. In some communities, owners have a defined window after receiving the budget to petition for a special meeting to reject it, after which the budget takes effect automatically if no such meeting is called or the rejection vote fails.
Even where the legal minimum notice is shorter, giving residents the new amount well ahead of the effective date is good practice on its own. Residents on autopay need time to adjust their bank-side payment amounts if your system doesn't handle that automatically, and residents budgeting month to month appreciate not being surprised by a higher charge with little warning. See payment portal for how automated dues collection handles amount changes.
A regular dues increase raises the recurring amount owners pay going forward, typically to keep pace with the operating budget and reserve contributions, see reserve funds. A special assessment is a different mechanism entirely: a separate, often one-time charge outside of regular dues, typically used to cover an unexpected expense, a reserve shortfall, or a large capital project that wasn't funded through ongoing reserve contributions. Special assessments often have their own approval thresholds and notice requirements, distinct from a routine dues increase, see our dedicated guide on HOA special assessments.
Boards sometimes reach for a special assessment because it feels like a one-time ask rather than a permanent increase, but a pattern of frequent special assessments can be a sign that regular dues and reserve contributions are set too low to cover the community's actual costs, a problem a reserve study can help quantify, see reserve studies.
The single biggest factor in how a dues increase is received is whether residents understand why it's happening. A notice that simply states "dues will increase from $X to $Y effective [date]" with no further explanation invites residents to assume the worst, mismanagement, an unnecessary expense, or simply that the board doesn't have to justify itself. A notice that ties the increase to specific line items, insurance premiums rose by a defined percentage, a vendor contract was renewed at a higher rate, reserve contributions are catching up to a reserve study's recommendation, gives residents something concrete to evaluate, even if they're still unhappy about paying more.
Practical steps that help:
Affordability concerns are real, but boards generally cannot reduce one owner's dues without doing so for all owners, since dues are assessed proportionally and uniformly under the governing documents, see delinquent dues for how the association should handle owners who fall behind regardless of the reason. What a board can do is make sure a payment plan option exists for owners facing temporary hardship, and, where a large increase is being driven by a one-time catch-up (such as restoring underfunded reserves), consider whether phasing the increase over two or three budget years is feasible rather than implementing the full amount at once.
| Scenario | Typical Approval | Typical Notice |
|---|---|---|
| Routine increase within the applicable cap | Board approval as part of annual budget | Budget notice to all owners, often ~30 days before effective |
| Increase above the applicable cap | Membership vote at the threshold in governing documents | Formal meeting/vote notice per bylaws |
| Special assessment | Often membership vote; varies by document and amount | Separate notice requirements distinct from regular dues |
| Emergency assessment (life-safety, etc.) | May allow expedited board action in some documents/states | Notice still typically required, though timelines may be shorter |
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Start Free TrialIt depends on your state and governing documents. Some cap board-approved increases without a membership vote, often around 10 to 25 percent, with increases above that requiring membership approval. Many communities have no statutory cap, in which case the bylaws control.
Often not for routine increases within the applicable percentage cap, which the board typically approves as part of the annual budget. Increases above that cap, or special assessments, usually require a membership vote at the threshold in the governing documents.
Most governing documents require the proposed budget, including the new dues amount, to go to all owners a set number of days before it takes effect, commonly around 30 days, sometimes with a window for owners to call a special meeting to reject it.
A dues increase raises the recurring amount owners pay going forward, typically for the operating budget and reserves. A special assessment is a separate, often one-time charge for an unexpected expense or reserve shortfall, often with its own approval and notice requirements.
Tie the increase to specific budget line items, insurance, reserves, contracted services, rather than presenting only the new number. Send the explanation with the formal notice, well ahead of the effective date, and be prepared to answer questions at the annual meeting.
The board can point to any payment plan or late fee policy, but generally can't reduce one owner's dues without doing so for all, since dues are assessed uniformly. For large increases, consider phasing the amount over multiple budget years where feasible.