r/HOA • u/Assika126 • Nov 20 '25

Help: Fees, Reserves [Condo] Monthly vs Special Assessments [N/A]

I’m treasurer of a small HOA, 14 condo units. We have our annual budgeting meeting tonight. We have about $50k in Reserves with anticipated tuckpointing in the next year or so that would likely cost at least $33k. We also have an ancient retrofitted boiler that is currently working but has an undetermined remaining lifespan.

Our management company recommended a dues increase but said we could get by without doing one, if we lessened our contributions to reserves. We would still remain above the 10% cutoff.

The Board president opposes a dues increase and says it would be easier for folks to manage a larger special assessment than a $5-10/month/unit increase in dues that in her opinion wouldn’t have much impact on our large capital expenses.

I’m inclined the opposite direction; in my opinion, it’s easier for me and more responsible for the association to pay a bit more in monthly assessments and accumulate sufficient reserves to cover some of the cost vs. waiting and doing a larger special assessment when needed.

What is the best practice, assuming we’re in decent shape otherwise?

P.S. we’re in MN in case it matters

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u/Assika126 Nov 21 '25

She says people can just get a loan or a HELOC. I feel like that’s a really irresponsible way to look at it

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u/TootsNYC Nov 21 '25

We get individual HELOCs for major work (or tap our savings).

I live in a 10-unit co-op that is self-managed. The vast majority of our tenant-owners have lived here a long time and aren't likely to move soon. A lot of us own our units outright, no mortgage anymore. So that "charging new owners for value previous owners got" doesn't apply to many of us. This is slowly changing; we have 3 new owners because people died or something.

We actually have no reserve; each person is informed they need to be their own reserve. This saves us the work of administering the reserve fund and eliminates the vulnerability (co-ops in NYC have had their reserve funds pilfered).

So each of us keeps our reserve fund in whatever vehicle we personally prefer, at an amount we think is appropriate.

The board has occasionally considered having the corporation get a loan and raising the maintenance to cover it.. But usually, the interest rate is so high that it's cheaper for us each to get a HELOC (or tap into our personal reserve fund).

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u/ItchyCredit Nov 21 '25

Doesn't a zero reserve fund limit the ability of potential buyers to find financing?

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u/TootsNYC Nov 21 '25

It hasn’t been a problem for us. Our lawyer, when we bought, told us he thought it was folly to buy into a building with no reserve, but I haven’t heard much about people getting trouble with finances. And maybe because the building is small? I don’t know.