Richmond 55+ HOA Fees
What to Know Before You Buy

Virginia Has No HOA Fee Increase Cap

This is the foundational fact Richmond 55+ buyers need to understand: Virginia state law (Code § 55.1-1805 and § 55.1-1825) authorizes HOA boards to increase fees as they see fit. There is no statutory limit on the percentage increase per year. There is no statewide formula tying increases to inflation. The HOA board has authority to raise fees for maintenance, repairs, operations, and reserves — and homeowners have limited practical recourse.

In 2024, national HOA fees increased an average of 5.7% year-over-year according to Redfin data. But that’s an average. Communities with underfunded reserves, aging infrastructure, or insurance cost spikes can see double-digit increases. A 38% single-year increase has been reported at a Richmond-area 55+ community.

Why HOAs Raise Fees: The Real Drivers

1. Underfunded Reserves

Every HOA has a list of capital components that will eventually need replacement: roofs, pool equipment, HVAC systems, parking surfaces, elevators (where present), clubhouse major systems. A reserve study projects the cost and timing of those replacements. The HOA is supposed to collect enough monthly to have the money ready when needed.

Many HOAs underfund reserves — keeping fees artificially low to attract buyers or maintain current resident satisfaction — and eventually face a choice: large special assessment or large fee increase. Both are painful. An underfunded reserve found at purchase is a leading indicator of near-term pain.

2. Insurance Cost Spikes

HOA master insurance policies cover common areas and, in some communities, exterior home structure. Insurance costs nationally have increased sharply since 2021. A community that was paying $80,000/year in insurance premiums in 2020 may be paying $130,000+ today. That $50,000 increase gets passed to homeowners through higher fees. Virginia hasn’t experienced Florida’s insurance crisis, but no market is fully insulated from this trend.

3. Service Contract Inflation

Landscaping, pool maintenance, security staffing, management company fees — all tied to labor costs that have risen materially. Communities with full-service HOAs covering exterior maintenance have higher service cost exposure than communities where the HOA covers only common areas.

The Documents You Need Before Closing

Virginia’s Property Owners’ Association Act (POAA) and Condominium Act give buyers the right to receive a resale disclosure package before closing. Use it. Don’t treat it as paperwork to skim — it contains the financial information that predicts your future HOA cost.

• Current reserve fund study: When was it done? Is it less than 3 years old? What is the percent-funded ratio? Below 70% is a warning; below 50% is a red flag.
• Reserve fund current balance: What does the association actually have in reserves today vs. what the study says it should have?
• Last 2–3 years of financial statements: Is the HOA running surpluses or deficits? Has the operating budget required reserve transfers?
• Last 2 years of board meeting minutes: Are there discussions of deferred maintenance, special assessments under consideration, or insurance premium increases?
• HOA fee history for the past 5 years: What has the trajectory been? A community that has increased 3% annually is very different from one that has been flat for 4 years (building pressure) or jumped 20% last year.
• Pending or recently approved special assessments: Is there a special assessment that attaches to the home at sale? Virginia law requires disclosure of these.
• Insurance policy declarations page: What is the master HOA policy? What does it cover? What is the deductible? What are you responsible for individually?
• Management company contract: Who manages the community and what does the contract term look like? Management company transitions can disrupt communities.

What “Exterior Maintenance Included” Actually Means (and Doesn’t)

Every Richmond buyer hears this phrase. It means different things at different communities, and the difference is material. Here’s what to look for in the governing documents:

New Community Risk vs. Established Community Risk

New communities like Hickory Grove (2025) and Lake Margaret (2023) have clean infrastructure but thin reserves. The HOA has been collecting for a short time, and if a major capital need arises in year 3, the reserves won’t cover it. The risk is a special assessment or large fee spike in the early years.

Established communities like CrossRidge (built 2001–2013) and Villas at Ashlake have accumulated reserves — but they also have aging infrastructure. Roofs installed in 2005 are approaching or at end of life. The risk is that deferred maintenance has accumulated faster than reserves. Both scenarios require the same due diligence; the risk profiles just look different.

The HOA Questions to Ask Before Making an Offer

• What is the current monthly HOA fee (master AND sub-association if applicable)?
• What has the fee been for each of the past 5 years?
• Has any special assessment been levied in the past 5 years, and are any being discussed?
• What is the current reserve fund balance and percent-funded ratio?
• When was the last reserve study conducted?
• Does the HOA cover roof, exterior painting, and siding — or just lawn and common areas?
• What is the deductible on the master HOA insurance policy?
• Is there a property manager and who is it? How long have they been managing this community?

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