The latest estimates from the Foundation for Community Association Research suggest that the number of community homeowners associations in the United States is somewhere around 361,000.
With so many Americans faced with the prospect of buying a home in one of these communities, many have questions about HOA fees and assessments.
You moved into a planned community with the expectation that your HOA home value would increase, not your assessments. Keep reading to learn the reasons behind the increase in HOA assessments in Seacoast, New Hampshire.
Understanding HOA Assessments
When you live in a planned community with association management, you pay dues for the operational expenses and upkeep of the community. Occasionally, the HOA board needs to charge homeowners a special assessment to cover unexpected expenses.
At the beginning of each year, the HOA board draws up a budget. The budget for the year determines how much each homeowner will pay in monthly, quarterly, or annual dues.
Why Are Your HOA Assessments Increasing?
As the prices of labor and materials increase, so do HOA assessments. Costs of everything from gas to groceries have increased exponentially over the past three and a half years. These increases in costs trickle down to other aspects of life.
Rising Costs and Inflation
HOA assessments increase to cover rising expenses for the community. The cost of labor, materials, and services all have gone up due to inflation. When the government prints money, more money chasing fewer goods leads to higher prices.
According to Thumbtack, to maintain a home in the last quarter of 2023, it costs $6,663 a year on average. This is an increase of 8.3% from 2022.
Unexpected Expenses Require Special Assessments
Special assessments are levied when HOA reserves are insufficient to cover major repairs or replacements. The community pool may need to be resurfaced or restored.
There may be damage from a storm or the parking lots may need repairs. If there is not enough money in the reserves, an increase in assessments is necessary.
Voting Against an Increase in HOA Dues
Sometimes homeowners vote against raising regular HOA dues. To cover budget shortfalls, the HOA board may have to levy a special assessment to make up the deficit.
Communicating Assessment Increases
When it's time to increase assessments, the HOA manager should schedule a meeting to explain the reasons for the assessments and explain how the funds will be used.
This type of transparency reassures homeowners that the money will benefit the community.
Increased Assessments Boost Your HOA Home Value
In order to increase your HOA home value, increases in HOA assessments become necessary. The increased costs of labor, materials, and services are driving the need for HOAs in the Seacoast area to raise assessments. This extra money allows the association to properly maintain the community and cover major expenses.
Do you know who can help your association manage your dues, assessments, and budget? We at PMI Green Rock have a long history in property management. Schedule a consultation through our website or call us at 603.601.2864 to hear more about our prompt, professional services.
