HOA Fees in San Diego: What They Cover and How to Check the Reserves

by Trevor Landress

When you buy a condo or townhome in San Diego, the monthly HOA fee is only the start, because the health of the association's reserves decides whether special assessments are likely. Fannie Mae, which many lenders follow, looks for at least 10% of the association's budget to go to replacement reserves and for no more than 15% of units to be 60 days or more behind on dues.

The short answer

The monthly fee funds shared costs and the association's reserve account for major repairs.
Fannie Mae's project standards look for a reserve allocation of at least 10% of the budget.
They also look for no more than 15% of units 60 or more days past due on HOA fees.
Ask for the budget, the reserve summary and any special assessment history before you write an offer.

What the fee pays for

A homeowners association collects dues, which pay for shared costs, and sets some of that money aside for future repairs. The California Department of Real Estate, in a consumer alert revised in 2012, tells buyers to check the association's budget summary, which must state whether reserves are adequate for the community's major components. The association must review those components at least once every three years to confirm enough funds are, or will be, available.

That review is where the real cost of ownership shows up. A low fee is not a bargain if the reserve account is thin, because the gap tends to come back as a special assessment.

What lenders look at

Fannie Mae's Selling Guide, in its full review process topic (dated August 5, 2026 when I checked it), sets standards for condo projects. They are written for lenders, but they show what to ask about. Your loan may or may not be sold to Fannie Mae, and other loan types have their own rules.

Item	What the Selling Guide looks for
Reserves	A projected budget that sets aside at least 10% for replacement reserves and deferred maintenance
Dues delinquency	No more than 15% of units 60 or more days past due on common expense assessments
Special assessments	No more than 15% of units 60 or more days past due on each special assessment
Insurance	The lender verifies the project meets the guide's insurance requirements
Litigation	Lenders must report major litigation that could affect eligibility within five business days

The 10% is the annual budgeted reserve allocation divided by annual budgeted assessment income. The Department's older alert adds that lenders may refuse to fund loans if an association puts less than 10% of its operating funds into reserves.

Special assessments

The Department's alert says underfunded associations often levy special assessments, which can reach tens of thousands of dollars, and that for health and safety repairs the full cost may be charged to members. It also says associations are typically limited to raising regular assessments by about 5% per year. That figure comes from an older document, so ask your agent and the association to confirm the current rule.

The point for a buyer is to look backward and forward. Ask whether a special assessment is already approved, and whether the reserve study points to a large project, such as roofs, siding or elevators, in the next few years.

What to ask for before you write an offer

The current annual budget and the reserve summary.
The most recent financial statements.
Minutes from recent board meetings.
A list of special assessments, past and planned.
The number of units behind on dues.
Any pending or threatened litigation.
Insurance information for the building.

The Department recommends requesting the seller's most current financial documents and doing your own due diligence, because each project can have unique issues. Walk the property too. It says to observe common areas such as exterior paint, amenities, roads, roofs, drives and fencing, since deferred maintenance can signal future costs.

Other checks on a condo or townhome

If the unit has been remodeled, ask for its permit records, which I explain in my permit history guide. Look at where the building sits on the flood map too, using my flood zone guide. And if the building has solar panels, read my guide to owned versus leased solar, because a lease can affect a sale.

My guide to buying a condo near UCSD and UTC has more on what to check in a common-interest building, and the budget questions above apply anywhere.

What a fee means for your budget

Your lender counts the HOA fee as part of your monthly housing cost, so a higher fee can lower the price you can afford. I explain how lenders add it up in my debt-to-income guide. A seller credit can sometimes pay HOA assessments for a limited time, since Fannie Mae's rules allow up to 12 months of assessments after settlement, as I explain in my seller credits guide. It is a one-time help, not a lower fee.

My advice for San Diego buyers and homeowners

Read the budget and reserve summary before you fall in love with the unit.
Ask how many owners are behind on dues and whether any special assessments are planned.
Compare the reserve allocation with the 10% benchmark lenders use.
Walk the common areas and look for signs of deferred maintenance.
Ask your lender early whether the project meets its requirements.

A note on advice

I am a REALTOR®, not a lender, attorney, tax professional or financial advisor, so this guide is general information. Your lender can tell you what you qualify for, and a CPA or attorney can answer tax and legal questions.

Call or text me at (619) 402-4614 or send me a message.

Call or text (619) 402-4614 Contact Trevor Landress

Related guides

Frequently asked questions

What do HOA fees pay for?

They pay for shared costs and fund the association's reserves for future major repairs.

What reserve level does Fannie Mae look for?

Fannie Mae's Selling Guide looks for a projected budget that allocates at least 10% to replacement reserves and deferred maintenance.

How many delinquent owners can a condo project have?

The Selling Guide allows no more than 15% of units to be 60 or more days past due on HOA fees, and the same limit applies to each special assessment.

What is a special assessment?

It is a one-time charge to owners, often levied by an underfunded association, and the Department of Real Estate says it can reach tens of thousands of dollars.

What documents should I ask for?

Ask for the current annual budget, the reserve summary, recent financial statements, board minutes and any special assessment history.

About the author

Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021.

Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.

He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland.

Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market. To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.

How I help San Diego home buyers

I help buyers sort out their budget, understand their loan options with a lender, search for homes, write and negotiate offers, keep track of inspection and contingency deadlines and stay organized through closing.

How I help San Diego home sellers

I help sellers price their home, prepare it for the market, market it to buyers, review and negotiate offers and manage the steps from an accepted offer to closing.