Quote:
Originally Posted by ChicagoNative
Most HOA boards I’ve experienced are concerned with keeping assessments as low as possible. The residents like it that way and usually squawk at even a hint of increased fees, no matter how small. That’s all fine until they start deferring maintenance and ignoring reserves. The HOA neglect of their fiduciary duty always catches up and results in either huge special assessments, insurance premiums that amount to highway robbery, tragedies like Surfside, or some combination thereof.
If you are looking to buy a condo and the reserves are underfunded, walk away!
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Exactly! So you are going to spend $1M+ for shared space with 50 other people who pinch pennies? The end is inevitable.
First step is to ask (or go online) to see their Reserve Study. If they do not have one, they are in deep financial trouble. If they do have one, check the suggested reserve balance against the actual. It's pretty easy to do.
Actually, the easiest first step is to check the HOA dues payment amount. If it is amazingly low, well, there is a reason why.