Why Your HOA Dues Are Going Up (Again)

Nothing rings in the new year quite like the annual HOA letter that says:

“Due to rising costs… your HOA dues will be increasing by ___%.”

In my neighborhood, that blank was recently filled in with 14%. And if you live in a Colorado condo? Your increase may have come with a side of heartburn, thanks to soaring statewide insurance costs.

Here’s the quick, friendly, “I promise this won’t be painful” guide to why HOA dues rise, what’s special about Colorado, and what you can do about it (that doesn’t involve staging a coup at the next board meeting).

What Your HOA Dues Actually Cover

Every community is different, but most dues go toward:

• Operations: Landscaping, snow removal, pools, clubhouse cleaning, trash, management fees.
• Utilities: Irrigation water, electricity for common areas, pool/boiler heating.
• Insurance: Especially for condos.
• Reserves: Savings for big future projects like roofs, siding, asphalt, boilers, elevators, pools.

Basically: everything you’d rather not personally deal with at 7 a.m. on a snow day.

How HOA Fee Increases Actually Happen

Colorado’s HOA law (CCIOA) gives boards the authority to:

• Prepare and adopt annual budgets
• Increase dues to meet projected expenses
• Present the budget to owners

Here’s the twist:
HOA budgets are usually approved automatically unless a majority of all owners vote to veto them.

So if you didn’t “vote yes,” don’t worry — you weren’t supposed to.
You only vote if you’re trying to reject a budget.

Why Dues Are Rising (Especially in Colorado)

1. The Insurance Market Here Is Wild

Colorado now leads the nation in homeowners’ insurance increases — with average premiums up 50–75% over the last few years due to wildfires, hail claims, and higher construction costs.

For condo associations, it’s even worse:
Master insurance policies have jumped 50%+ in many communities, and some have seen 300–600% spikes.

This is the #1 reason condo HOA dues are skyrocketing.

2. Everything Costs More Now

Landscaping, snow removal, labor, utilities, pool chemicals, roofing materials — all pricier across the board. HOAs feel these increases more than individuals because they maintain entire neighborhoods.

3. Reserves Are Catching Up to Reality

Many Colorado HOAs kept dues low for years.
Now they’re finally funding reserves at responsible levels — or catching up after skipping too many years.

No, it’s not fun. Yes, it’s better than a massive special assessment later.

Why Condo Owners Feel It the Most

If your HOA covers your roof, exterior, structure, shared systems, and master insurance, you’re more exposed to rising costs.

This is why condo dues might jump 20–50% in one year while single-family home HOA dues might rise 5–15%.

What You Can Do as a Homeowner

1. Read the budget (even if it’s painful).

Look for insurance increases, reserve contributions, and big category jumps.

2. Ask smart questions — not combative ones.

• “How much of the increase is insurance?”
• “Did we get multiple bids?”
• “Are we catching up reserves after past underfunding?”

Boards respond better to teammate energy than courtroom energy.

3. Attend the budget meeting.

You’ll understand the decisions and can push for clearer communication or phased increases.

4. Join the board or a finance committee.

If you want influence, this is the most effective place to be.

5. If buying or selling, review HOA docs carefully.

Insurance renewals, reserve studies, and recent budgets matter a lot for condos.

The Bottom Line

Colorado HOA dues are rising because:

• Insurance costs have surged statewide
• Utilities, labor, and materials are all more expensive
• Many communities are finally funding reserves correctly
• Colorado law allows boards to increase dues through budget adoption unless vetoed

It’s not fun, but it is understandable — and, honestly, often necessary to keep communities maintained and protected.

If you ever want help decoding your HOA’s budget or understanding how an increase affects your home’s value, I’m always happy to dig in with you.