Special Assessments in Resort HOAs—what to scan before you bid
Quick context: 30-year fixed averaged 6.06% in last week’s Freddie Mac survey (released 1/15). Lower payments help, but HOA math is driving more deals than rate talk right now.
What I read first—fast:
Budget: How much of dues go to insurance, utilities, snow/roof, and contingency? If insurance is the fastest-growing line, assume more pressure ahead.
Reserves: % funded and annual reserve contribution as a share of the budget (10–25% is a common healthy range). Cross-check remaining life on roof, boilers, elevators.
Minutes (12 months+): Search for “assessment,” “premium,” “non-renewal,” “hail,” “claims,” “deck,” “sprinkler,” “fire suppression,” “elevator.” Note any deferred items and contractor bids.
Insurance packet: Ask for the dec page, deductible schedule (wind/hail and ordinance & law), and renewal status. Many associations faced big premium jumps or non-renewals in 2024–2025; some raised dues or levied one-time assessments.
Stress test: Would a $5k–$20k per-unit assessment break your plan? Price that risk in. Ask your insurer about HO-6 loss-assessment coverage.
Offer strategy: Lead with seller credits → model a 2-1 buydown → keep inspection leverage for roof/sewer/HVAC/radon. In resort buildings, credits often beat headline price cuts.
If you want a second set of eyes on budgets, reserves, or minutes before you fall for the view, I’m here.
—Andy | Vail Peak Realty
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