Nearly three of every four respondents (73%) to a recent survey plan to raise assessments for the residents they serve at condominiums, homeowners associations, and housing cooperatives. The anticipated fee hikes are to offset unexpected increases in expenses due to rising costs and inflation.
Respondents to the survey by the Foundation for Community Association Research included community association managers, professionals, and homeowners. Nine out of 10 of them (91%) indicated they have experienced unexpected cost increases.
Areas with the largest increases in expenses included management fees (92%), insurance premiums (91%), maintenance services (85%), staffing (74%), landscaping services (72%), and reserve funding (64%).
While three-fourths of the survey respondents indicated they plan to raise assessments, other measures are also being considered:
- 41% say they plan to reduce expenses;
- 40% plan to defer maintenance projects;
- 31% are reducing landscaping programs;
- 18% plan to cut legal fees;
- 15% will lower their reserve funding contributions;
- 14% will scale back community amenities.
Also being explored are renegotiating contracts, prioritizing projects, investing in energy efficiency, special assessments, utilizing contingency funds, and exploring bank loans.
The Foundation for Community Association Research provides research and analysis on community association trends, issues, and operations. Its work supports more than 74 million Americans who live and work in an estimated 358,000 U.S. community associations.