What is an HOA dues letter?
An HOA dues letter, or assessment letter, tells owners how much they’ll pay in assessments for the coming year. It usually goes out with or after the approved budget.
When dues go up, a clear letter that explains why, with real numbers, prevents most of the angry calls and emails that follow an increase.
What to include
- The new assessment amount and how often it’s due
- The effective date and first due date
- How much it changed and why
- Every way to pay
- Autopay or payment plan options
- Who to contact with questions
Template preview
Fill in the [highlighted] fieldsRe: [Year] Assessment, Account #[number]
Dear [Owner name],
The Board of Directors has approved the [year] budget. Beginning [effective date], your assessment will be $[amount] per [month / quarter / year], due on [due date].
- Previous assessment: $[amount]
- New assessment: $[amount] ([increase / decrease] of $[amount], or [percent]%)
- First payment due: [date]
This change reflects [main reasons, e.g., a 14% increase in the master insurance policy and the reserve contribution recommended in our reserve study]. A copy of the approved budget is [enclosed / available at link].
You can pay [online at your resident portal: link], set up automatic payments, or mail a check payable to [Association Name] to [address].
If you have questions or would like to discuss a payment plan, contact us at [phone or email].
Tips for using this template
Name the two or three biggest cost drivers, like insurance or a reserve study recommendation.
Many states require notice of an increase 30 or more days before it takes effect.
Include the portal link and invite owners to set up autopay.
Frequently asked questions
How much notice must an HOA give before raising dues?
It depends on your governing documents and state law. Thirty days is common, and some states require more.
Can an HOA raise dues without a vote?
Often the board can raise dues up to a limit set in the governing documents or state law. Larger increases may need owner approval.
Should the letter include the budget?
Yes, if you can. Enclosing the approved budget or a summary answers most questions.