Increasing HOA Income Without Raising Dues

Some Homeowner Associations resign themselves to the idea that the only way to increase income is to raise homeowner dues. This is not always the case. There are other avenues you can explore.

 Ways to raise income for hoa without raising dues.

Ways to Increase HOA Income Without Raising Dues


  • Unique Programs such as Cable Access Agreements and Water Sub-Meter Programs. Wondering if your community is a candidate for these type of programs? Contact us to find out.

  • Review your Governing Documents. A few of the easiest and best amendments that give your neighborhood extra money are initiation fees and foreclosure fees. Read below for more details about both.


What are initiation fees?

Initiation fees are collected from the buyer when a home is being purchased in a community. Initiation fees are determined by the association’s governing documents and adding an initiation fee requires an amendment. The amendment is typically not difficult to get the appropriate votes as it is not charged to the current owners in the community and it does assist in funding the budget, reserves, or capital improvements. 

Adding an initiation fees can assist associations greatly in their financial state, allowing the associations to build reserves for future projects that would have negatively impacted their budget prior to the initiation fees.


A good rule of thumb for determining a community initiation fee is to calculate two months of dues for Condominiums or Townhomes, or one year’s worth of dues for an HOA. This will allow for the initiation fee to change as the assessments change each year. If the association prefer to set a flat dollar amount it could be written in the amendment that the amount can be changed at the discretion of the Board.


 Ways to raise hoa income without raising dues.

What are foreclosure admin fees?

For properties that face foreclosures, a Foreclosure Admin Fee amendment is an option that many associations look into. When a home falls into foreclosure, the foreclosing entity is required to pay all the assessments from the date of foreclosure forward until the home is resold. However, any unpaid assessments owed by the prior owner, prior to the foreclosing entity taking ownership of the property are not collectable from them in Georgia. So, this results in a loss for the association as, there will be a deficit for the period of time the prior owner did not pay their assessments and fees associated with the association.

In an effort to make the association as whole as possible, a fee can often be required of the foreclosing entity upon taking ownership, in addition to any assessments due from the date of foreclosure. 


Like the initiation fee, if the language for the foreclosure admin fee is not present in the covenants then an amendment must be passed in the manner expressed in the covenants. However, also like the initiation fee, most associations see little resistance as it will assist in maintaining the integrity of the annual budget and lessen the burden on current homeowners to maintain the property.


Those are just a few ways to increase your HOA income without raising homeowner dues. There are more ways to consider.

If you want to discuss your community’s specific options for increasing income drop us a line.