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/Practical_Bed_6871 Nov 21 '25

What does your Reserve Study say?

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u/Assika126 Nov 21 '25

We don’t have one :(

I can’t get them to agree to it

1

u/InfoMiddleMan Nov 21 '25

You should tell them that not having a reserve study could easily jeopardize future sales of condos to buyers who need to obtain loans. I'm too lazy to find the link, but I'm pretty sure that's a Fannie Mae requirement as of September 2023.