On August 20, Unity hosted Community Forward: Why Are HOA Dues Going Up? — a live educational webinar bringing together homeowners, board volunteers, and industry professionals for an honest conversation about one of the most common questions in HOA living today.
The panel featured Christina "Tina" Keele, an HOA Insurance and Risk Management Professional, and Scott Ford, President and Co-Founder of California Builder Services, moderated by Unity CEO Sal Silva. Here is a summary of what was covered.
The Insurance Market: What's Driving Costs Up
One of the most pressing topics was the current state of HOA insurance in California. The short answer: rates are rising, and it is not specific to any one community.
California's insurance market has been under significant pressure following back-to-back catastrophic wildfire seasons. Insurers are recouping significant losses, adjusting risk models, and in some cases, pulling back from the California market altogether. The result is that HOAs across the state are seeing premiums increase — in some cases substantially — regardless of their individual claims history or management quality.
As Tina Keele outlined during the webinar, rising insurance premiums are not a reflection of how well or poorly a community is being managed. They reflect a statewide market challenge that every association is navigating. For board volunteers fielding questions from homeowners about dues increases, understanding this distinction matters.
What homeowners can take away: when insurance costs rise, dues often follow. That is the system working as designed — the association maintains the coverage required to protect the community, and the cost is shared among all homeowners.
Reserve Funding: Planning for What's Coming
Scott Ford addressed a topic that often gets less attention than it deserves: reserve funding.
A reserve fund is the money an HOA sets aside to cover major future repairs and replacements — roofs, parking lots, pools, elevators, plumbing systems, and other shared infrastructure. California law requires HOAs to conduct regular reserve studies to assess the condition and remaining life of these components and ensure the association is setting aside enough to cover future costs.
When reserve funding is inadequate, communities face two options when a major repair is needed: a special assessment — a one-time charge to all homeowners — or deferred maintenance, which typically leads to more expensive problems down the road. Neither is a good outcome for anyone who owns property in that community.
The board volunteers who oversee reserve planning are making decisions today that protect every homeowner's investment years from now. It is one of the less visible but most important responsibilities a board carries.
Breaking Down HOA Budgets in Plain Language
A recurring theme throughout the webinar was that HOA budgets can feel opaque — and that transparency helps everyone. The panel walked through the major categories that make up a typical HOA budget:
Operating expenses — day-to-day costs including landscaping, utilities for common areas, maintenance, and management
Insurance premiums — the association's master policy covering shared property and liability
Reserve contributions — the monthly amount being set aside for future major repairs
Administrative costs — accounting, legal, and compliance-related expenses
When dues increase, it is almost always because one or more of these categories has grown — most commonly insurance and reserves. Understanding what the numbers represent makes it easier for homeowners to evaluate whether their association's financial decisions are sound.
California law requires HOAs to provide homeowners with an annual budget disclosure that breaks down all of these costs. If you have not reviewed yours recently, it is worth requesting a copy from your board or management company.
What This Means for Homeowners
HOA finances can feel complicated, but the underlying principle is straightforward: everyone who owns a home in a shared community has a stake in that community's financial health. Well-funded reserves, appropriate insurance coverage, and a transparent budget process protect property values and prevent the larger financial surprises that come from deferred planning.
The board volunteers managing these decisions are your neighbors. They are not accountants or insurance professionals by trade — they are homeowners who raised their hand to help. Webinars like Community Forward exist to make sure they — and you — have access to the information needed to make those decisions well.
The full webinar recording is available to watch on the Unity YouTube channel. Watch the recording →
