Why is this happening now?

For many years, expenses were low enough that the existing dues covered the costs.

However, over time:
• Dues were not regularly increased to keep up with inflation
• Insurance and vendor costs have risen dramatically in recent years
• The governing documents limit increases to 5%

As a result, the gap between income and expenses slowly closed until the Association reached a point where the budget simply cannot keep up.

This is similar to starting a job that comfortably pays the bills, but over time the cost of living rises much faster than your salary increases. Eventually the math stops working.