September 2020 | Goodwin & Company

Is There a Limit to Dues Increases?

Essentially, an increase in dues is based on the association’s ability to meet its annual budget. If your Association is unable to adequately save funds or pay for maintenance expenses, it is probably in need of a dues increase. So, by this generalization, there isn’t a set limit to how much annual dues can increase at one time.

However, the association itself will usually have a limit placed on dues to keep them under control. If limitations are in place, they will be found in the association’s CC&Rs, which are accessible by any member of the community. Many Association documents typically outline that an increase of 10% can be made at the discretion of the Board, but anything more than that in one fiscal year must be voted upon by the members.

Keep in mind, though, limited increases aren’t always a good thing for your community. If they are suppressed enough, your association could run into trouble down the line if a fund shortage limits the completion of an essential community project.

What Are the Reasons Behind a Substantial Increase?

As we mentioned before, the budget is the key to annual increases in an association. Prices for goods and vendor services rise, and HOA management doesn’t have a choice in the matter other than to adapt.

Some of the key reasons a budget would increase include:

Repair and replacement needs for common areas

Community damage after a natural disaster

Rise in cost of operation expenses

Rise in cost of maintenance vendors

Once these increases are determined, the HOA then reviews the funds it has in its reserves and decides if its current amount can handle the increased budget. If the association has insufficient funds even beyond their reserves, homeowners could face a hike in annual dues.

Unfortunately, for all members of an association, a community can face increased payments every year. This is due to inflation and unpredictable costs that are added on to essential services for the community.

Understand Your Annual Increases With the Help of Goodwin & Company

If your association is having trouble with its finances due to unexpected cost increases, Goodwin & Company can help. Our team has experience in providing leadership, legal and financial advice to communities like yours, all with a successful outcome. Don’t let the looming shadow of financial stress keep your community from thriving. Contact us today to learn more about our services.

Property value is something that every homeowner wants to maintain and increase. After all, increased property value means greater potential for financial gains if a sale is in the homeowner’s future.

While most homeowners may have a hard time simply keeping up with maintaining property value, those who live under an HOA actually benefit from naturally increased property value over the years. Here’s a look at how your HOA helps maintain and improve your property’s value.

Assured Upkeep of Your Home

Although your association’s bylaws and regulations may seem like ordinances that hold back creativity, the truth is, they are in place to ensure the overall upkeep and uniformity of your home.

Externally visual aspects of your home like lawn care, the state of your fencing and prominent external damage to the home, all influence your property value, as well as the property value of neighboring homes.

Therefore, when rules are enforced and owners are requested by the HOA to make any exterior improvements, homeowners should view these requests as assurance that their property maintains its value.

We Invest in the Best Vendors Possible

A planned community is only as good as the vendors used to improve the neighborhood. Your HOA’s association management team has access to only the best vendors that help maintain the upkeep of shared common areas like parks, community buildings and swimming pools.

The value of your property extends beyond your lawn. So, as long as your personal property and its surrounding public areas are well-maintained, the more your property value grows over the years.

HOAs Have the Community Planned Out for Years

Even before homeowners become members of an HOA community, the HOA and its management team have already planned out the visual aspects of the community that will financially benefit it for years to come.

From the paint used on the exterior of homes to the trees and bushes used throughout the overall landscape of the community, your HOA Board has likely researched what will maintain its value over the years. This planning also leans towards the requirements for uniformity that homes must maintain during ownership.

We Prevent Neighborhood Problems

A homeowner may not even be the root of external problems that occur on their property. Your property value can suffer if neighbors allow trees to overgrow onto your property or trash up their yards to the extent that it impacts the visual appearance of your own.

If talking to your neighbors can’t resolve the problem, your HOA management team can step in to provide extra motivation for your neighbors to act more neighborly. A great HOA knows that all properties are connected to their overall value, and won’t let neighboring problems become an issue for a concerned homeowner.

Further Increase the Value of Your Community With Goodwin & Company

An HOA board has a lot to keep up with when it comes to maintaining property values and their other numerous obligations to the community they serve. Many HOAs look towards Goodwin & Company for help because we make the difficult parts of managing a community smoother through bountiful resources and years of experience in our field. If you’re ready to make your neighborhood as valuable as it can be, and more, we’re ready to help! Contact us today to learn more about our services.