On top of the high cost of property insurance, condo and homeowners are complaining about their local HOA fees increasing by hundreds of dollars each year, if not monthly.
“It’s no longer the big metro areas in the state seeing higher homeowner fees, it’s also hitting the smaller rural counties as well,” says financial analyst Steve Beaman.
In Jacksonville, Florida, callers to talk radio WBOB told their stories how their 1-bedroom condo fees went up to over $500 dollars a month, hitting those with fixed incomes.
“The monthly amount callers told us what they were paying was shocking,” said WBOB radio host Roger Henderson.
Another caller said their HOA fees went up to $1400 a year and their association wouldn’t allow the members to pay monthly, instead the dues had to be paid upfront or make two payments every six months.
“My fees are limited to 5% per year, but now my HOA is adding a “special assessment” which we have never had to pay before,” a caller told Henderson.
An HOA special assessment is an extra fee an association may charge homeowners in case reserve funds are insufficient.
Other areas of the state are also being hit.
In central Florida, the Wekiva Country Club Villas Homeowners Association in Seminole County jacked up their HOA fees as they saw their yearly insurance premiums rise from $91,000 in 2023 to $233,000 in 2024.
Condo owners at the Lakewood Park Condos in Altamonte Springs saw their HOA fees go up by 100%. Depending on the size of the condo, owners are seeing their dues increase to $713 dollars and others to over $1,000 dollars monthly.
Danielle DiMartino Booth, the CEO of QI Research told Fox Business News, the rise in HOA fees is also contributing to some foreclosures in the state, primarily with those on a limited income.
To help mitigate the rising cost of HOA fees, financial and legal experts say keep an eye on the following:
New regulations affecting local communities. Homeowners need to constantly engage with their HOA boards about upcoming new laws.
Stay updated on local property values.
Having more volunteers from the community help out with maintenance and landscaping would save money on dues.
A effective reserve management, almost like a piggy bank. This is where homeowners can make regular contributions for needed projects in the community.
