2025 Rate Increase from $66.00 to $70.00

Information on the Average Assessment Increase and Percentage in Nevada

The CC&R (Article V, Section 5.1) allows the Legacy Pointe HOA Board to adjust annual assessments based on estimated Common Expenses, but it doesn’t specify a percentage cap or historical data for Nevada HOAs. Web data indicates no specific Nevada Revised Statute (NRS 116) limits annual assessment increases, except for perhaps special assessments.

  • HOA assessment increases in Nevada vary widely, with no fixed average due to differing community needs. Web sources note that inflation-driven increases typically range from 2-10% annually to offset rising costs (e.g., FirstService Residential, DoorLoop).

  • Nationally, HOA fees rose 32.4% from 2005 to 2015 (iPropertymanagement.com), averaging about 2.9% per year, but recent inflation spikes (e.g., 40-year high in 2022) have pushed some increases higher. In Nevada, with 3,700 HOAs serving 211,600 homes (iPropertymanagement.com), no precise 2025 year-over-year data exists, but anecdotal evidence from forums (e.g., r/HOA) and articles (e.g., ReviewJournal.com) suggests increases of 5-10% in 2023-2024 due to cost pressures.

  • For 2025, given inflation cooling to around 3-4% (based on recent economic trends), a reasonable estimate for Nevada’s average increase might be 3-7% annually, though this is speculative without official state data.

Legacy Pointe’s increase from $66 to $70 is a $4 rise, or approximately 6.06% ($4 ÷ $66 × 100). This aligns with the upper end of the estimated Nevada range, suggesting it’s not outlier but may feel significant after five years at a flat rate.

Impact of Inflation, Insurance, Landscaping Labor, and Other Costs

  • Inflation: Inflation has been a key driver of HOA cost increases. After peaking at 9.1% in mid-2022, it’s moderated to around 3-4% by 2025 (general economic context). Web sources (e.g., CedarManagementGroup.com, FirstServiceResidential.com) indicate HOAs often adjust dues by 2-3% annually to match inflation, but Legacy Pointe’s flat $66 for five years (2020-2025) likely lagged behind, accumulating a shortfall. A 3% annual increase over five years would have raised dues to about $76, meaning the $70 adjustment is conservative.

  • Insurance Costs: Insurance premiums have risen sharply due to market hardening, litigation, and natural disaster risks. FirstService Financial notes 10-30% increases in 2021-2024 (FirstServiceResidential.com), with Nevada facing similar pressures from wildfires and liability claims. For Legacy Pointe, the CC&R (Article IX) mandates insurance (e.g., liability, fidelity bonds), and a 10-20% increase since 2020 could add significant costs, justifying part of the $4 rise.

  • Landscaping Labor: Labor costs have increased due to wage growth and shortages. Web data (e.g., ClarkSimsonMiller.com, iPropertymanagement.com) cites 72-85% of HOAs reporting higher landscaping costs, with labor up 5-15% annually since 2020 due to inflation and demand. Legacy Pointe’s CC&R (Section 2.9.2) requires landscaping maintenance, and your observation of regular landscaper presence suggests this is a major expense. A 10% labor cost hike since 2020 could easily contribute to the need for a dues increase.

  • Other Costs: Management fees, utilities, and reserve contributions have also risen. Web sources (e.g., DoorLoop.com) report 92% of HOAs facing higher management costs and 91% noting insurance increases, with utilities and materials up due to inflation. The CC&R (Section 1.64) requires reserve funding, and underfunding over five years could necessitate the $4 adjustment to avoid special assessments.

Comparison to Dues Increase

  • Legacy Pointe’s 6.06% increase in 2025 contrasts with cumulative inflation of ~15-20% over five years (3-4% annually), suggesting the Board under-adjusted previously. Insurance and labor costs likely rose 20-50% combined since 2020 (based on web trends), far outpacing the $4 (6%) rise. This indicates the increase may not fully cover cost growth, challenging the “not necessary” complaint.

  • Homeowners feeling they’re “not getting their money’s worth” may expect amenities (e.g., pools, clubhouses) absent in the CC&R. The dues fund landscaping, common area maintenance, insurance, and reserves (CC&R Sections 2.7.2, 2.9.2, Article IX), which you confirm via regular landscaping. Compared to HOAs with similar services, $70 is low—national averages are $200-300/month (iPropertymanagement.com), and North Reno peers may charge $50-150/month for basic upkeep.

Addressing Homeowner Concerns

  • Lack of Increase for Five Years: The flat $66 rate since 2020 likely deferred cost pressures, making the $70 jump noticeable. Web data (e.g., r/HOA) shows HOAs avoiding increases can lead to larger future adjustments or special assessments, as seen in Miami’s condo collapse case.

  • Not Getting Value: The CC&R limits benefits to maintenance and governance, not luxury amenities. Regular landscaping aligns with stated obligations, and $70/month is cost-effective compared to hiring private landscapers ($500-1,000/year, or $42-83/month in Reno’s climate).

  • Necessity: The 6% increase reflects underfunding relative to 15-20% cost growth since 2020. Delaying adjustments risks reserve depletion, as warned by Association Reserves (FirstServiceResidential.com).

Conclusion

Legacy Pointe’s 6.06% increase to $70/month is within estimated Nevada HOA trends (3-7%) and responds to inflation (~15-20%), insurance (10-30%), and labor (5-15%) cost hikes since 2020, which outpace the adjustment. Homeowners may feel the rise due to five years at $66, but the value—regular landscaping and maintenance—matches the CC&R, and $70 remains competitive. The Board should enhance transparency (e.g., budget breakdown per Bylaws Section 4.2) to address perceptions of unfairness or necessity.

Legacy Pointe HOA CC&R on Unused Funds

The CC&R for Legacy Pointe HOA outlines the management of assessments and reserve funds:

  • Article V: Assessments:

    • Section 5.1 - Annual Assessments: Assessments are set to cover Common Expenses (e.g., landscaping, insurance, maintenance), as defined in Section 1.19. These are estimated annually, and any surplus isn’t addressed with a refund mandate. Instead, surpluses are typically rolled over to the next year’s budget to offset future expenses or reduce assessments.

    • Section 1.64 - Reserve Account: Reserve funds are for “repair, replacement, and restoration of Major Components” (e.g., walkways, walls). There’s no provision for refunding unused reserves; these funds are held for future capital needs, ensuring the HOA can handle long-term repairs without special assessments.

  • Implication: The CC&R does not require the HOA to refund unused operating or reserve funds. Operating surpluses are likely retained for future budgeting, and reserve funds are earmarked for specific future expenses, not discretionary distribution.

Legacy Pointe HOA Bylaws on Unused Funds

The Bylaws further detail financial management:

  • Article III: Powers and Duties of the Board:

    • Section 3.2 - Powers: The Board has authority over financial management, including budgeting and maintaining reserves. There’s no mention of refunding unused funds to homeowners.

    • Section 3.7 - Budget and Assessment: The Board prepares an annual budget, and assessments are adjusted based on projected expenses. Surpluses aren’t required to be refunded; the Board can apply them to future expenses or lower future assessments at its discretion.

  • Article IV: Meetings of Members:

    • Section 4.2 - Annual Meetings: The budget is presented to homeowners, but there’s no mechanism for mandating refunds of unused funds. Homeowners can discuss surpluses, but the Board isn’t obligated to distribute them.

  • Implication: The Bylaws give the Board flexibility to manage surpluses without requiring refunds. Unused funds can be retained for future needs or used to adjust future assessments, aligning with the CC&R.

Nevada Revised Statutes (NRS) on Unused Funds, Are they required to be returned?

Nevada laws, specifically Chapter 116 (Common-Interest Ownership), provides clarity:

NRS 116.3114 - Surplus Funds
Unless otherwise provided in the HOA's declaration, any surplus funds remaining after payment of or provision for common expenses and reserves must be handled as follows:

  • Paid to unit owners in proportion to their liabilities for common expenses, or

  • Credited to them to reduce their future common expense assessments.

This ensures that excess funds are returned to or benefit the unit owners rather than being retained indefinitely by the association.

  • NRS 116.3115 - Assessments for Common Expenses: This statute requires HOAs to levy assessments for operating and reserve expenses and maintain an adequate reserve fund (NRS 116.3115(2)(b)). It doesn’t mandate refunding unused funds. Operating surpluses can be retained for future budgets or to reduce future assessments, and reserve funds must remain allocated for their intended purpose (e.g., major repairs).

  • NRS 116.31073 - Maintenance and Availability of Reserve Accounts: Reserve funds must be kept in a separate account and used only for designated purposes, such as repairing common elements. Refunding these funds to homeowners isn’t required and could violate the statute by depleting necessary reserves.

  • NRS 116.31151 - Annual Budget Ratification: HOAs must provide a summary of the proposed budget to owners and hold a meeting for ratification. If there’s a surplus, the law doesn’t require a refund; the Board can decide how to handle it, typically by applying it to the next year’s budget.

  • NRS 116.31153 - Financial Transparency: HOAs must provide financial statements, including reserve and operating account balances, ensuring transparency. However, this doesn’t translate to a refund obligation.

  • Implication: Nevada law prioritizes financial stability for HOAs, ensuring funds are available for future needs. Neither operating nor reserve surpluses must be refunded to homeowners. Refunding reserves, in particular, could undermine the HOA’s ability to maintain common elements, which is a legal obligation.

Additional Context on Nevada HOA Practices

Looking beyond the specific statutes, general practices in Nevada HOAs (based on web trends and expert insights) reinforce this:

  • HOAs often retain operating surpluses to avoid future special assessments or to fund unexpected expenses, a practice supported by the lack of refund mandates in NRS 116.

  • Reserve funds are governed strictly to ensure long-term maintenance, as seen in NRS 116.31073 and Nevada Administrative Code (NAC) 116.425, which defines “adequately funded reserves” as sufficient to maintain common elements without relying on operating funds or special assessments. Distributing reserves would contradict this purpose.

  • Some HOAs might voluntarily lower assessments if there’s a consistent surplus, but this isn’t a legal requirement—it’s a Board decision, as noted in resources like FirstService Residential’s guidance on HOA budgeting.

Addressing Homeowner Concerns

Homeowners at Legacy Pointe feel entitled to refunds because funds are “sitting unused,” especially after the assessment increase from $66 to $70 in 2025. However:

  • Operating Account: A surplus here (e.g., from lower-than-expected landscaping costs) doesn’t trigger a refund obligation under the CC&R, Bylaws, or NRS. The Board can retain it to offset future expenses, especially after five years at $66, which likely underfunded operations given inflation (15-20% since 2020) and rising costs (e.g., 10-30% for insurance, 5-15% for landscaping labor).

  • Reserve Account: Reserves are for future repairs (e.g., replacing the sound attenuation wall), not immediate distribution. Refunding them would leave the HOA vulnerable to future financial strain, violating both the CC&R (Section 1.64) and NRS 116.31073.

  • Perception of Value: Homeowners feeling they’re not getting their money’s worth (despite regular landscaping, as you’ve noted) might see unused funds as justification for a refund. However, the funds’ purpose is to ensure long-term stability, not to provide immediate rebates.

Conclusion

Neither the Legacy Pointe HOA’s CC&R nor Bylaws, nor Nevada law (NRS 116), requires the HOA to refund unused funds from the operating or reserve accounts. if the funds are ear marked for future needs. Operating surpluses can be retained for future budgets, and reserve funds must remain allocated for future repairs, ensuring the HOA’s financial health. Homeowners aren’t legally entitled to a refund, though the Board could choose to lower future assessments if surpluses persist. To address concerns, the Board should provide a detailed financial breakdown at the next annual meeting (per Bylaws Section 4.2), showing how funds are allocated and reinforcing their necessity for community maintenance.