What is the limit on annual maintenance and support charge increases?

The correct response is that annual maintenance and support charges cannot increase by more than five percent (5%). This limit is designed to provide a level of predictability and affordability for contractors and service providers involved in the housing system, ensuring that costs do not escalate excessively from year to year. By establishing a cap on increases, the agreement aims to create a balanced and sustainable financial environment for those who are engaged in maintenance and support activities, fostering a more stable and manageable budget for both parties involved.

In contrast, other proposed limits are either too high or too lenient as per the guidelines outlined in such agreements. A ten percent increase would potentially place an undue financial burden on involved parties, while a two percent limit could be insufficient to allow for necessary growth and adaptation to rising operational costs. The freedom suggested by the last option, where annual increases are not regulated, could lead to unpredictable charges that undermine the stability that the agreement seeks to provide.