Are there limits on how much I can increase my condo association dues?

In Delaware, there are limits on how much a condo association can increase its dues each year. Condo associations must follow the Delaware Condominium Act and the rules that are contained in the Condominium Owners Association Declaration (COAD). According to the COAD, condo associations can increase their dues annually by no more than 5% of their current rate. It also states that the annual increase cannot be more than $25 or the equivalent of 25 cents per unit – whichever is higher. In addition to the yearly increase, condo associations may also pass special assessments on condo owners to cover unexpected expenditures. However, the amount of the special assessment cannot exceed 10% of the annual operating budget of the condo association. However, in certain circumstances a condo association can increase its dues by more than 5% or the equivalent $25 per unit. This can include circumstances such as an increase in insurance costs, an increase in property taxes, or a decline in rental revenues. In these cases, the board of directors must notify owners of the proposed increase in dues, and the owners can vote on whether or not to approve the increase. Therefore, in most cases condo associations cannot increase dues beyond 5% or the equivalent of $25 per unit. However, in certain cases, the board of directors can propose a larger increase, which has to be approved by the condo owners.

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Are there limits on how much I can increase my condo association dues?

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