Question:
HOA Dues, even if a due increase has been approved, I am wondering what the limit is? Is there a limit how much an HOA can charge residence?
– Kevin
Answer:
Hi Kevin,
The HOA board generally has the power to increase dues by as much as it needs to meet the annual budget. That said, Section 32-25.5-3-3(f) of the Indiana HOA Act provides a special stipulation that applies to HOAs that don’t meet a quorum for approving the budget:
“If the number of members of the homeowners association in attendance at a meeting held under subsection (d) does not constitute a quorum as defined in the governing documents of the homeowners association, the board may adopt an annual budget for the homeowners association for the ensuing year in an amount that does not exceed one hundred percent (100%) of the amount of the last approved homeowners association annual budget. However, the board may adopt an annual budget for the homeowners association for the ensuing year in an amount that does not exceed one hundred ten percent (110%) of the amount of the last approved homeowners association annual budget if the governing documents of the homeowners association allow the board to adopt an annual budget under this subsection for the ensuing year in an amount that does not exceed one hundred ten percent (110%) of the amount of the last approved homeowners association annual budget.”
You should also check your bylaws and CC&Rs for any limitations.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
