Question:
As a board member we are trying to determine the increase of HOA fees. Is there a calculator online or formula to use to calculate? Today we are in the green and will continue to grow the reserve that we currently have. I want to give an accurate view into the future so everyone on the board will be able to understand what the increase will do for the future reserve. Thanks for your information.
– Jerry
Answer:
Hi Jerry,
Your association’s governing documents should be able to tell you how you should calculate HOA fees. Generally, the fees should be enough to cover all of the association’s upcoming expenses and projected reserve contributions. You should also account for possible delinquencies or nonpayment.
As for reserve contributions, your HOA board can better budget for these if you have a reserve study as a guide. The reserve study will be able to tell you how much you will need in your reserves at any given time. From this, you can determine any fee increases.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
