HOA fees cover the shared costs of maintaining a condo community, like landscaping, insurance, and amenities. Special assessments are extra charges imposed for unexpected or major repairs. Both affect your monthly housing costs and should be carefully reviewed before buying a condo.

What Are HOA Fees?

When you buy a condo, you’re not just buying your unit, you’re also buying into a community. Homeowners Association (HOA) fees are the monthly dues that fund the upkeep of shared spaces and services. These can include:

Landscaping and common-area maintenance
Exterior building repairs (roof, siding, paint)
Trash, water, or sewer service
Building insurance
Amenities like gyms, pools, or security

HOA fees vary widely depending on the size of the building and the level of amenities. In San Francisco and Marin, they can range from a few hundred dollars per month to well over $1,000+ in luxury developments, and particularly stock cooperatives.

What Are Special Assessments?

In addition to monthly dues, HOAs sometimes levy special assessments. These are one-time or recurring charges when a major repair or improvement is needed and the HOA’s reserve fund isn’t enough to cover the cost. Examples include:

Replacing a roof
Upgrading an elevator
Structural repairs (like those required by balcony laws such as SB-326)

Special assessments can be significant and may catch buyers off guard if they aren’t prepared.

How HOA Costs Affect Buyers

Monthly Affordability: Lenders consider HOA dues when calculating your debt-to-income ratio. A higher HOA fee can reduce the loan amount you qualify for.
Resale Value: High or rapidly increasing HOA fees can make a unit less attractive to future buyers.
Risk Management: A well-funded HOA with healthy reserves reduces the likelihood of large special assessments. Reviewing HOA financial documents during escrow is critical.

Buyer Strategy Tips

Always review the HOA’s financials and reserve study during due diligence, and sometimes the most important step you can take is reading the HOA Minutes.
Ask about pending or recent assessments.
Compare HOA fees to the level of amenities — sometimes higher fees are justified if they replace costs you’d otherwise pay individually (like gym memberships or security).
Work with your agent to interpret HOA documents and spot red flags.

✅ Bottom Line: HOA fees and assessments directly impact your monthly budget and long-term financial planning. Understanding both helps you make a smart, informed condo purchase.