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Subject: HOA maintenance fees increase
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01/25/2006 10:47 AM  
I do have a question and I will really appreciate if you could give me some advice. We are a condominium resort in a beautiful port in Mexico. 240 condos in 2 towers, 2 pools, 2 jacuzzis, state of the art fitness center, aquabar and snak bar at the pool, pool restrooms, magnificent restaurant with room service, convenience store, bbq grill areas, beautifil green areas, private beach, etc. so far we are the best resort in the area. We are looking into increasing the HOA maintenance fee, sincerely only our fixed expenses are much greater than our income. Despite us being the best resott we have the cheaper maintenance fees of all, 98% of the owners are americans. We are thinking about raising the fees 40%, and in average that would equal us to the other resorts. How do I write the letter to inform of the increase?, do I list reasons? include a comparative chart with the other resorts? how far can I go with the increase?. I do know that 70% of the owners will agree in increasing the fees, how can I convince the rest?
I do greatly appreciate any advice you can provide.


01/25/2006 12:10 PM  
Marcos, read your Declaration and Bylaws to determine what you can do and the approach needed. I have no knowledge of the structural organization and requirements in Mexico. But based on my experience it will take all of the items you listed plus a real good sales job to get the votes needed for a 40% increase.

Good Luck,


01/27/2006 5:50 PM  
So long as your expenses compared to income call for an obvious need to increase maintenance fees, it should not be a hard sell.

If you are raising fees just because everyone else has higher fees, that is not a legitimate reason and no matter how hard you try you won't sell it!



01/30/2006 5:57 AM  
Like Roger stated, you need to check your Covenants and Bylaws, but in the case of our HOA in Texas, the Deed Restrictions and Covenants specify the amount of the dues. The dues started out at nearly $600 a year. The Covenants state that they cannot be raised more than 10% (check to see if this is in your Covenants or bylaws--it's very important because a member(s) could bring legal action if it is stated and you raise dues above it) per year (of the amt. that year) and the board votes on that after deciding if it is necessary. Unfortunately in our association, the board have been very spendthrifty in one area and now will need monies for the other areas. However, you really should have a need for the extra dues, not just raise them to comparison with other associations. Our dues are still half of what some are in our immediate area -- the reason is that a few years ago our Municipal Utilities District (MUD) took over the paying of our street lights and garbage collection (which used to be paid by the association's dues), which although we pay high MUD taxes at the end of the year, it lowered our dues to $300 and now in the last eight years with occasional 10% increases they are back up to $475. The key is to keep a about year's worth of total dues in reserves and figure only what is needed to run the operation/maintenance and divide by the number of units to get the amount of dues. Our Covenants also state that the dues cannot go above the $600 figure without a majority vote of the members. The other fortunate thing is that no matter what the Covenants state--if the board lowers the dues any amount, association members are happy!
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Forums > Homeowner Association > HOA Discussions > HOA maintenance fees increase

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