HOA Dues Increase: How Much Can Your HOA Raise Dues?
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Key takeaways
- California caps increases without a vote. Regular assessments generally cannot rise more than 20 percent over the prior year without member approval.
- Emergencies are an exception. Court orders, safety hazards and unforeseeable repairs can justify a larger increase in California.
- Notice is required. California owners must get 30 to 60 days’ notice before an increase takes effect.
- Nevada uses a budget vote instead. The budget is ratified unless a majority of all owners reject it.
- Keep paying while you dispute. Withholding assessments can lead to a lien and, in some cases, foreclosure.
Insurance, repairs and reserve shortfalls have pushed many associations to raise dues. An HOA dues increase is often legal, but it is not unlimited. California caps how much a board can raise regular assessments without asking members, and Nevada lets owners reject the budget. This guide, part of our series on HOA assessments and foreclosure, explains the limits in each state and how to challenge an increase.
Can your HOA raise dues?
In short: yes, but it must follow the budget and approval rules in your state.
California associations must levy assessments high enough to meet their obligations, but may not collect more than needed to cover the costs they are levied for (Civil Code §5600). In Nevada, assessments must be made at least once a year based on an adopted budget (NRS 116.3115).
Most increases follow the annual budget. Boards look at operating costs, insurance and the reserve study, then set dues for the coming year. Our guide to the California HOA reserve study explains how reserves drive that number.
How much can a California HOA raise dues without a vote?
In short: up to 20 percent over the prior year, if the board has distributed the annual budget report.
Without member approval, the board may not raise regular assessments more than 20 percent over the prior fiscal year (Civil Code §5605). Special assessments totaling more than 5 percent of budgeted gross expenses in a year also need a member vote. This applies even if the governing documents allow larger increases.
Member approval means a majority of a quorum (Civil Code §4070). For this rule, a quorum is more than 50 percent of members (Civil Code §5605). The yes votes must be a majority of the votes cast and also a majority of the quorum.
There is a second condition. To raise regular assessments without a vote, the board must have complied with the budget report requirements of Civil Code §5300. If it did not, even a small increase needs member approval (Civil Code §5605).
Newer communities with deed-restricted affordable units have an extra rule. If the original declaration was recorded on or after January 1, 2025, increases on those units are capped at 5 percent plus a regional cost-of-living change, up to 10 percent. Some developments are exempt.
When can a California HOA raise dues more than 20 percent?
In short: with member approval, or in a qualifying emergency.
The 20 percent limit does not apply to an emergency assessment, and there are three kinds (Civil Code §5610). The first is an extraordinary expense required by a court order. The second is an extraordinary expense to fix a threat to health or safety or another hazardous condition. The third is an extraordinary repair the board could not reasonably have foreseen when it prepared the budget.
For the third kind, the board must first adopt a resolution with written findings. The findings must explain why the expense is needed and why it was not foreseeable. The resolution goes to members with the notice of the increase.
Large repair projects, such as balcony and walkway repairs, often lead to these assessments. See our guide to SB 326 balcony inspection assessments.
What notice must a California HOA give?
In short: an annual budget report before the year starts and 30 to 60 days’ notice of any increase.
The annual budget report must go out 30 to 90 days before the end of the fiscal year (Civil Code §5300). It includes a projected operating budget, a reserve summary, a summary of the reserve funding plan, a statement on any deferred repairs, and any expected special assessments.
Owners must also receive individual notice of any increase not less than 30 nor more than 60 days before it is due (Civil Code §5615). An increase that skips this notice can be challenged.
How do HOA dues increases work in Nevada?
In short: Nevada has no 20 percent rule like California’s. Owners can instead reject the budget.
The board must send owners the operating and reserve budgets, or a summary, 30 to 60 days before the fiscal year begins (NRS 116.31151). Within 60 days after adopting the budget, the board mails a summary and sets a ratification meeting 14 to 30 days after mailing.
The budget is ratified unless a majority of all owners reject it, or a larger share if the declaration says so. No quorum is required. If owners reject it, the last ratified budget stays in place until a new one is ratified.
Rejecting a budget takes organizing, because the test is a majority of all owners, not just those who attend. Reserve assessments are different: the board may impose necessary and reasonable reserve assessments based on the reserve study without owner approval (NRS 116.3115). Owners must also get 21 days’ notice before a meeting that will consider a capital improvement assessment (NRS 116.3115).
Facing a large HOA dues increase?
Send us the budget report or budget summary, the notice of the increase, last year’s assessment amount, and any board resolution about an emergency. We can tell you in one conversation whether the increase followed your state’s rules.
How can you challenge an HOA dues increase?
In short: check the process, get the records, raise it at a meeting and keep paying.
Check the process: compare the increase with last year’s assessment, the notice dates and, in California, the budget report deadline. A missed step can make the increase invalid without a vote.
Get the records: budgets, the reserve study, contracts and invoices show whether the increase is needed. See our guides to the California HOA records request and Nevada HOA records requests. If the numbers do not add up, our guide to HOA misuse of funds explains what to look for.
Use the meeting: raise questions at the board meeting where the budget is adopted, or organize owners to reject the budget in Nevada. Our guide to HOA board meeting rules explains your right to speak.
Use dispute resolution: in California, you can request internal dispute resolution (Civil Code §5910). You can also pay a disputed amount within small claims limits under protest, along with other amounts levied, and then sue in small claims (Civil Code §5658).
Keep paying: do not withhold assessments to protest an increase. Unpaid assessments can lead to a lien and foreclosure. See our guides to California HOA foreclosure and the Nevada HOA foreclosure process.
When should you talk to a lawyer about an HOA dues increase?
In short: when the increase is large, the notice looks defective, or an emergency assessment seems unjustified.
A short review of the budget report, notices and board resolutions often shows whether an increase can be challenged. Our assessment disputes team represents owners in both states. Boards that want to raise dues lawfully should plan the budget calendar early, because the notice deadlines are strict.
Ready to Protect Your Rights?
Whether you just received notice of an increase or the board has already adopted the budget, we can help. We will review the budget, the notices and the board’s process, and tell you where you stand. Schedule your free consultation and speak directly with a Nevada and California HOA attorney.
Frequently asked questions
Generally up to 20 percent over the prior fiscal year, and only if the board met the §5300 budget report requirements (Civil Code §5605). Larger increases need a majority of a quorum or a qualifying emergency.
Nevada has no 20 percent rule like California’s. Instead, the budget is ratified unless a majority of all owners reject it at the ratification meeting (NRS 116.31151).
In California, individual notice 30 to 60 days before the increase is due (Civil Code §5615). In Nevada, the budget or a summary must go out 30 to 60 days before the fiscal year begins.
Yes, in California, for a court order, a threat to health or safety, or an unforeseeable repair (Civil Code §5610). For an unforeseeable repair, the board must first adopt written findings and send them to members.
Not safely. Unpaid assessments can lead to a lien and foreclosure. Pay, then challenge the increase through the records, the meeting, dispute resolution or small claims.
In Nevada, yes, if a majority of all owners reject the budget. In California, owners vote when an increase exceeds the 20 percent limit or special assessments exceed 5 percent of budgeted expenses. They also vote if the board skipped the budget report rules, unless an emergency applies.
Conclusion
An HOA dues increase is common, but both states set limits. California caps increases without a vote at 20 percent, requires a budget report and 30 to 60 days’ notice, and allows larger increases only with approval or a qualifying emergency. Nevada lets a majority of all owners reject the budget.
Check the notice and the numbers, get the records, and keep paying while you challenge an increase. For each state’s wider framework, see our Nevada NRS 116 guide and Davis-Stirling Act guide.
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