Best Practices for Community Associations Implementing Dues Increases

By Laura Manning-Hudson / Published November 2024

Many Florida community associations are being forced to increase their monthly dues to pay for increases in insurance, maintenance, reserves, and inspections. It is only natural for substantial increases to be met with resistance and dissent from owners, so associations and their boards of directors should make highly effective use of communication and open records to nip all those negative reactions in the bud.

     Many associations are getting ahead of owners’ questions and concerns by dramatically increasing their transparency and communications. Not only do such efforts foster the trust of owners, but also they can help to gain acceptance of the financial realities that are behind the budget increases.

     Communities and their directors are finding that advance notice and communications are very helpful for owners. Most communities notify their owners of coming increases at least 30 days in advance. If possible, any additional advance notice can help owners to allocate and prepare for the coming increases in their fixed monthly expenses. Ample advance notice also demonstrates to owners that the directors are doing everything they possibly can to ease the burden as much as possible.

     For the notification itself, associations should provide concise yet complete information about the coming increase and the date it goes into effect. It should highlight the reasons for the increase and remind owners that all of the supporting records and information are available for inspection.

     Florida law now calls for many community associations to maintain websites, and one of the best ways to make all such documentation and records available for inspection is by posting them on the website in a password-restricted section exclusively for owners and residents. Owners appreciate the full transparency that this provides, and it also will hopefully help to address and prevent any potential concerns.

     For owners who have been attending and participating in association board meetings, the news of the need to increase their monthly dues will come as no surprise. However, for all the owners who do not attend meetings regularly or pay much heed to association matters, increases that in many cases are quite substantial can be met with sticker shock.

     Associations and their directors should understand and anticipate such reactions. They should be prepared to clearly explain the reasons and the details behind the increase and provide specifics on how the additional funds will be used for any insurance price increases or necessary maintenance and improvements.

     A letter summarizing all of this information from the association president should prove helpful. In addition to summarizing the necessity of the increases to the association’s budget and therefore the monthly dues, it could also provide examples of the benefits that will be realized through the effective allocation and use of the funds. For example, any property improvements that will be completed lead to increased appeal and property values for the entire community.

     For all the owners who wish to peruse the association’s official records for themselves as Florida law provides, the best approach is to share detailed documentation including any reports, projections, and other data that illustrate the need for the additional funds. Associations with websites can and should make as many of their records as possible available to their owners online, but those without a website should be prepared to provide and showcase their official records to demonstrate their commitment to full transparency and disclosure.   

     While increases in association dues can be challenging and problematic, associations can help to diminish any potential for difficulties and dissent with their commitment to owner communications. Those that go above and beyond the call of duty to satisfy any potential questions or concerns will be setting a path for as much understanding and acceptance of financial realities of the situation as can possibly be achieved in their community.

Laura Manning-Hudson

Shareholder, Siegfried Rivera

     Laura Manning-Hudson is a shareholder with the Coral Gables-based law firm of Siegfried Rivera who is board certified as an expert in community association law by the Florida Bar. She is the managing shareholder of the firm’s West Palm Beach office and a regular contributor to its Newsroom blog at www.SiegfriedRivera.com/blog. In addition to the Newsroom blog, our firm’s community association attorneys write about important matters for association in our Miami Herald column, which appears every two weeks on Sundays, and we encourage association directors, members, and property managers to visit the blog and subscribe to our newsletter to receive our future articles.
     The firm also has an office in Broward County, and its 50 attorneys focus on real estate, community association, construction, and insurance law. For more information, visit www.SiegfriedRivera.com, call 561-296-5444, or email LManning@SiegfriedRivera.com.