In most places there is no legal ceiling on how much an HOA can raise dues. Associations have to keep pace with their own rising costs, and they are generally required to fund reserves for future capital projects like roof replacement or repaving. Periodic reserve studies, often prepared by a reserve specialist, estimate what the big-ticket components will cost down the road and how much needs to be set aside now. When a study shows the fund is short, dues can jump, or the association can levy a special assessment to close the gap. Since a cap probably does not exist, judge the specific association's track record instead: - Have your agent pull the dues history going back roughly five to ten years. That shows the real pattern: increases every year, flat stretches, or spikes. - Ask whether owners have ever been hit with a special assessment. A five-dollar-a-year drift like you describe is a reassuring sign, but the reserve health behind it is what tells you whether it can hold. Rules on notice, voting, and assessment caps vary by state and by the association's own governing documents, so request and read the CC&Rs, the budget, and the most recent reserve study before you close. Those documents tell you what you are actually signing up for.