The HOA fees for The Best Homeowners Association, Inc. will increase by 3% in the next fiscal year.
Most homeowners don’t want to hear that assessments might be increased. However, sometimes a fee increase is the best way to keep the association in good financial health, and sometimes increases are unavoidable. Most governing documents support fee increases to account for increased operating costs. Here are some of the reactions homeowners typically have when they hear that their fees are about to increase, followed by the related rationales for an increase.
- “I can’t afford the increase.” When you live in an association, you need to be willing to share the costs, as described in the governing documents to which you agreed in escrow. Keep in mind that if the association does not maintain its property, real estate values can decline.
- “I probably won’t be living here in 15 years when the streets need repaving. Why should I have to pay now?” The problem with this “short-timer” logic is that these people are themselves benefiting from the use of the streets, pool, and other common assets paid for by members who lived there before. Members are required to and should pay for the incremental use of these items each year they live there.
- “Why don’t we just have a special assessment for a specific project?” It can be difficult to collect money when a large expense suddenly arises. It’s better to collect funds gradually so the funds are there when needed. Also, a special assessment unfairly penalizes homeowners who happen to live in the association at the time.
Do you have questions about your community’s assessments? Board Members, please contact your Community Association Manager. All other homeowners contact Community Services at HOA@HendersonProperties.com or 704-970-4155. We appreciate the opportunity to serve you!