How HOA Fees Are Adjusted and What Factors Impact Them

How HOA Fees Are Adjusted and What Factors Impact Them

When you live in an HOA community, you have to make do with paying HOA fees.

You're probably already paying a mortgage, home insurance, and utility bills, so you don't welcome any additional bills. Unfortunately, it's not uncommon for HOA boards to adjust the resident fees, and more often than not, the adjustment only happens in one direction: upwards.

Many reasons can force an HOA to raise its fees, and there's a process that must be followed.

Read on for deeper insight.

How HOA Fees Are Adjusted

The management of your HOA community isn't going to raise fees out of nowhere. The HOA's governing documents flesh out the procedures that must be followed whenever there's a need to adjust fees.

In most cases, the HOA board of directors will deliberate on the matter and make a decision. If there's a resolution to raise the fee, the board will convene a meeting to be attended by all residents. Residents will be informed of the need to adjust fees, and everyone will have an opportunity to voice their views.

In short, the entire community must sign off on the resolution. You'll have a clear picture of when the new adjustments will take effect, and by how much the fee will be increasing.

Factors Influencing HOA Fee Adjustments

HOA fee adjustments don't just happen. There will always be a justification for increasing the fees. Some of the top factors impacting fee adjustments include:


Inflation causes the prices of goods and services to rise, leaving businesses with no option but to pass on the cost to consumers.

An HOA might not be a business, but it has revenues (from fee collections) and expenses just like any other business. It has financial obligations, such as paying for maintenance and repair of communal amenities.

When inflation rises, there will be an impact on the HOA's expenses. They'll rise, while revenues remain constant.

This can cause the HOA to fall into financial distress, and even become unable to pay its employees and vendors. The only solution is to increase HOA fees so that it raises enough revenue to meet its needs.


A big chunk of your HOA dues goes into the maintenance and repair of communal assets like driveways, pools, clubhouses, and parks.

As the community invests in the development of these amenities, the associated maintenance and repair bills will rise. For example, if your community has one pool but needs to build two more, where are the funds to maintain the additional pools going to come from?

Your pocket, no doubt!

Understand How HOA Fees Work

HOA fees are an integral part of HOA living. Those well-manicured lawns, clean driveways, and functional clubhouses don't come out of nowhere. Money is spent on keeping them that way.

HOA boards do a great job managing the community's finances, but it's advisable to outsource the job to an association management company.

PMI Central PR is a full-service association management company serving HOAs in Central Puerto Rico. If you want to experience what a company that's part of a property management franchise that's been in business for over 20 years can do for your community, contact us!