Question:
I am considering legal action to my HOA, fees started $300/month, a year later we are at 950$/A MONTH. It would be one thing if the funds were being put to use. Yet, no work has been done to the exterior of our condo while reconstruction and paint has been done to the first street. They completed that a year ago and say they do not have funds to complete the remaining until year 2027. My question, at what point is this considered robbery?
We have a destructed tennis court with no net and cracks/potholes filled in it. We have rotten wood on exterior. Our porch was evaluated and deemed fine even though it is practically coming off the house. At what point can a HOA stop increasing price?
Appreciate your expertise.
– Jordan
Answer:
Hi Jordan,
In Alabama, an HOA has the authority to raise dues as outlined in its governing documents. However, significant increases without corresponding maintenance or improvements may indicate financial mismanagement, lack of transparency, or even potential misconduct. A jump from $300 to $950 per month in one year is extreme, especially if repairs are not being completed across all units.
Start by reviewing your HOA’s governing documents, specifically the bylaws and CC&Rs, to determine whether there are limits on how much and how often dues can be increased. Some HOAs require a homeowner vote for substantial increases, while others give the board full discretion. If your documents do not set a cap, the board may legally continue raising fees, but they still have a fiduciary duty to manage funds responsibly.
The fact that one section of the community received upgrades while others remain neglected raises concerns about fair allocation of funds. Request access to financial records, including the budget, reserve fund balance, and recent expenses. If the board refuses to provide financial transparency, that could be a red flag.
If your HOA claims it cannot complete repairs until 2027 despite major fee increases, demand clarification on why funds are unavailable. Ask whether money is being redirected to other projects, covering legal costs, or compensating for unpaid dues from other homeowners. If necessary, homeowners can call a special meeting or organize a petition to challenge the financial decisions.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
