What Idaho Homeowners Should Know About HOA Assessments and Recent HOA Law
Idaho homeowners’ associations continue to face important questions surrounding assessments, financial planning, community governance, and homeowner disclosures.
However, contrary to some recent reports circulating online, Idaho has not enacted a statewide 5% cap on annual HOA assessment increases beginning October 1, 2026.
Homeowners should therefore continue to look to their association’s governing documents, budgets, and applicable Idaho law when determining how assessments can be established or changed.
Idaho’s HOA Laws Continue to Evolve
Idaho has made several changes to its Homeowner’s Association Act in recent years.
One significant recent law, House Bill 361 from the 2025 legislative session, changed certain governance and financial-disclosure requirements for newer homeowners’ associations. The law addressed issues including declarant control, board membership, proxy voting, and financial disclosures. It took effect July 1, 2025. (idahorealtors.com)
The changes are particularly relevant to newer planned communities as control transitions from developers to homeowners.
HOA Assessments Are Still an Important Financial Issue
Without a statewide 5% statutory cap, homeowners should not assume that their HOA dues can only increase by a fixed percentage each year.
Assessment authority generally depends on the association’s governing documents and applicable Idaho law.
This makes it important for homeowners to understand:
- Current annual or monthly assessments
- The association’s operating budget
- Reserve funding
- Planned capital improvements
- Any approved or proposed special assessments
- The assessment provisions contained in the CC&Rs and bylaws
Homeowners should review these documents before purchasing a property in an HOA community.
Financial Disclosures Can Help Homeowners
Idaho’s Homeowner’s Association Act contains financial-disclosure requirements that can help homeowners understand their association’s financial position.
For example, Idaho Code §55-3205 addresses financial disclosures and provides homeowners with access to information about outstanding assessments, charges, fees, and other financial obligations. It also requires an annual reconciled financial disclosure within a specified period following the association’s fiscal year-end. (communitypay.us)
For buyers, reviewing an HOA’s financial information can provide valuable insight into potential future costs.
What Buyers Should Ask Before Purchasing
Prospective homeowners should consider asking for the association’s current financial information and governing documents before completing a purchase.
Important questions include:
What are the current HOA dues?
Understanding the current assessment is only the starting point. Buyers should also determine what services and amenities those dues cover.
Are there planned increases or special assessments?
A low monthly assessment does not necessarily mean lower long-term costs if the association has major projects that are not adequately funded.
How well funded are the reserves?
Reserve funding can help an association pay for major repairs and replacements without relying entirely on special assessments.
What do the governing documents say about assessments?
The CC&Rs and bylaws may establish important rules concerning assessment increases, special assessments, and homeowner approval requirements.
What This Means for HOA Boards
For boards and community managers, responsible financial planning remains essential.
Boards should regularly review operating expenses, insurance costs, maintenance contracts, utility expenses, and reserve requirements.
Competitive bidding for major contracts, accurate budgeting, and appropriate reserve planning can help associations manage expenses while maintaining community services.
Rather than relying on an assumed statewide percentage cap, boards should make sure proposed assessments comply with their governing documents and applicable Idaho law.
The Bottom Line
Idaho has continued to update its laws governing homeowners’ associations, particularly regarding community governance and financial disclosures.
However, there is currently no verified Idaho statewide law establishing a 5% annual cap on regular HOA assessment increases beginning October 1, 2026.
For homeowners and buyers, the best approach is to review the association’s governing documents, financial disclosures, current budget, reserve funding, and any planned projects before making a purchasing decision.
For HOA boards and community managers, transparent budgeting and proactive financial planning remain essential to maintaining healthy communities and avoiding unexpected financial pressures.
Sources
For current information, Idaho homeowners and community associations should consult the Idaho Legislature, Idaho REALTORS®, and the applicable sections of the Idaho Homeowner’s Association Act. Homeowners should also consult their own association’s governing documents and qualified legal counsel when questions arise about assessment authority.