Huge increase in condo fees

March 15, 2025

Visitor Question: Our COA has recently raised our assessment drastically. We have been used to paying $104 per month, with a small discount if we paid annually in advance. Now the COA board is planning on having us pay $462 per month, which they say is necessary to bankroll enough money that we could pay for major repairs, like roofs or foundation issues.
The foundation problem is no joke because we live in an area where there are some sinkholes and subsidence of the ground from time to time. However, I think the proposed increase is excessive and on a more practical level, it is an increase I cannot afford as a widow.

What are my options for dealing with this? I've lived here for 24 years and never made any trouble, or had any problems. However, I don't know what to do. It seems like if they need the extra money, which I doubt, they could at least make the increase gradual so I would have time to get my unit ready to sell. What can I do?

Editors Reply: I'm very sympathetic with your plight, as it seems completely unfair to have such a sudden increase. It is not going to be much of a consolation to you if I say that this is due to past condo owners association boards imposing assessments that were inadequate to cover realistic future needs.

No doubt those past COA boards did not foresee sudden and dramatic increases in the costs of some building materials either.

Now we'll tackle your question. In practical terms, read your covenants to find out exactly what powers the board has to raise your assessments. Of special interest should be whether and how the board must notify property owners in advance.

If the covenants are silent on this issue, as we predict many master deeds would be, then you have to prepare to do what is best for you. To establish some sense of control, find a real estate agent that you trust and ask questions about your options. Relevant questions would be the costs of selling, costs of any repairs or upgrades the agent thinks would be cost-effective, and your realistic options for other housing.

If there is a requirement for notice or for delays in the implementation of your HOA fees, consider how the time between now and the date you will have to start paying these assessments can be used to your advantage in calculating the costs and benefits you discover in the previous step.

You might find that your best alternative is to remain in place, and that even if you loathe the idea of paying that much for each month, it is the least bad of the options. Then it is time to talk with a financial advisor or a friend or relative who is wise about financial matters to figure out how you can cope.

If it is of any comfort, know that you COA board actually is acting prudently to accumulate a reserve against the day when the nearly inevitable big repairs become necessary. Probably they are making up for an artificially low level of fees in past years.

Like everywhere else in the world, your COA will have to adjust to climate change and the resulting increases in insurance costs.

However, we do understand that you are a widow and cannot afford this wise move, so do what is best for yourself.

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